Every dentist goes to a dentist, right?
Every Counsellor hires a Counselor for himself -he needs it desperately.
So should every IFA have an IFA?
An Ifa thinks it is a great idea to consult an Ifa. However when it comes to his own money ..he prefers doing it himself !! Why so?
These are the following reasons why an IFA needs an IFA to manage his finances…
1. Most human beings are biased especially when it comes to their own health, finances, etc. So an IFA may not be able to see his own finances as clearly as he would like to. Or as clearly as he should. So advisors, no matter how neutral and unbiased they may be with their clients, often need the support of counselling to see their own lives through an objective perspective.
2. Advisers may lack the discipline and thoroughness when it comes to their own money -afterall they are not really answerable to any body. To bring that discipline into their own personal finance it is necessary to have a personal adviser for themselves.
3. It is an ethical responsibility for advisers to seek counselling on a regular basis to ensure they are continuously growing and working on their own issues, so that they do not bring their biases, struggles, opinions or problems when counselling their own clients.
4. Clearly in my portfolio there is an equity bias. In 2015 in the midst (or beginning or end, I do not know) it is nice to have an equity laden portfolio. However one may lack the discipline of asset allocation, reduction of concentration risk, some obvious mistakes, etc. Whereas having an independent review makes sense.
5. There could be a lot of learning for the adviser to see another adviser at work!
If you are an IFA, can you think of any other reasons for having an adviser for yourself?
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