A Reader was Rejected When Asking for Financial Help Because the Advisor Told My Reader that “…a lot of financial advisers don’t like to take hourly work.”
Wow! FYI, that adviser’s statement is NOT following Garrett Planning Network’s Official and Long-Standing Policy!Â
(For the record this adviser is no longer listed on the Garrett Planning Network)
One of Garrett Planning Network’s Fee-only Financial Advisers Failed the “Hourly work” Test!
Dan and I are huge fans of Garrett Planning Network and the National Association of Personal Financial Advisers. People are searching for a trusted financial professional who will not screw clients with excessive costs or commission-laden investments. However, our loyalty to these professional organizations for fee-only advisers was put to the test, but not how we would have expected.
One of my readers (I’ll call him “Jake”) wrote to me, after finding a Garrett financial planner in his neighborhood by a web search: “I explained to her that I was tweaking my portfolio and wanted to make sure I was on the right track. She informed me that a lot of financial planners don’t like to take hourly work.” After a brief discussion, the planner sent Jake on his way.
Jake didn’t seem bothered, but I was. Dan and I often refer people to Garrett in large part because its advisers accept hourly fees. That’s good for clients like my readers who are savvy investors and want to understand and be responsible for their own finances.
This adviser’s disparaging comment about hourly work does not meet Garrett’s standards and it includes a huge assumption about “a lot of financial planners.” If she was too busy, she could have referred Jake to a colleague. Most advisers offer a complimentary first session. However, she dismissed Jake like yesterday’s newspaper with the wrong message about Garrett Planning Network’s fundamental relationship with clients.
Talked with This Adviser
I called the adviser. I told her that I write a financial blog and try to help my teacher colleagues find fee-only, fiduciary financial advisers. I have always recommended readers go to Garrett or NAPFA for professional help. I wanted her side of the story.
Wow! Did I get an earful!
Our conversation ended with her being defensive. She ranted about all the problems dozens of clients a day bring to her. While many people want their adviser to do everything and don’t want to learn anything, Jake wasn’t one of those clients. He wanted to pay HER by the hour to look at his portfolio. THAT’s ALL. She took exception and started getting technical. She said the “self-implement” model failed, and advisers needed a business model that works both for themselves and clients.
WHAT? Self-implement failed because it assumes clients will learn how to be do-it-yourselfers?
She asked me if Jake filled out a questionnaire, and I said he didn’t mention any questionnaire. When I asked her why she did not refer Jake to another planner, she said that she assumed Jake was “perfectly capable of finding another planner” since he found her. She then said she would see him if he filled out a questionnaire, but it wouldn’t be for two months.
I understand a busy schedule with a full client load. I asked, “Why didn’t you just say that no openings were available and be done?” She repeated that if he filled out the questionnaire, she would see him, blah, blah, blah.
When I hung up the phone, I had a huge negative gut feeling. Talk about hyperbole, distractions, and being defensive! This hyperactive adviser didn’t realize that she might not have communicated clearly with Jake, who was asking for help.
Called Garrett Planning Network
I had to get to the bottom of this, so I called Garrett. Good news! The Garrett spokeswoman was more appalled than I by this network member’s conduct. She invited Jake to file a complaint with Garrett. OF COURSE, all do-it-yourselfers (or potentials) are welcome to pay by the hour for any reason, the Garrett rep said.
The spokeswoman said to tell Jake to call her and she would help find an adviser. She already knew this adviser when I told her the adviser’s first name–there are only 320 Garrett advisers in the country. She thanked me profusely for reporting this incident and promised to talk about it with Sheryl Garrett, the founder.
I was immensely relieved by the Garrett spokeswoman. I gave Jake the spokeswoman’s contact information and encouraged him to speak with Garrett.
Jake wrote later: “So I have decided to do it on my own. I certainly have read enough books, articles, and magazines to date, though it doesn’t make me an expert, however, I’m confident I’ll be able to sleep at night.”
Good for Jake
Now I can sleep at night knowing that Garrett will help investors, whether newbies or experienced, to construct a low-cost, broadly diversified index investing strategy, with fee transparency and fiduciary responsibility.
We must report unprofessional conduct, no matter how innocuousÂ
The final lesson is that Jake had the courage to report his experience. The retirement system also needs our assistance. We need to speak up when something goes wrong and doesn’t sit right. Most financial planners associated with Garrett Planning Network and National Association of Personal Financial Advisers are good people who want to help. The mistakes made by some will improve the service and communication of other advisers.
Kudos to Jake!
Thank you Jake. If it wasn’t for you, this post would not be possible nor would Garrett Planning Network have the opportunity to improve its work.
Steve’s Note: I asked Sheryl Garrett for a follow-up report on this adviser. Sheryl wrote this message: Click here.
Continue Your Education about Fee-only Financial Advisors
- Podcast Interview November 2015 by Dan Otter of 403bwise.com: Fiduciary planner Sheryl Garrett, CFP, owner of the Garrett Planning Network is now available on iTunes and here:
- Read Rick Ferri’s review of Garrett Planning Network:Â https://www.bogleheads.org/forum/viewtopic.php?t=62197
- Listen to this podcast about deceptive advisers who claim to be fee-only:Â http://paulmerriman.com/some-advisors-are-so-deceptive/
Wow! Steve, I must congratulate you! Your professionalism and restraint in this issue is remarkable. I think I would have identified the advisor and thoroughly reamed him/her…..Then be sued later on! Ha
Bravo for taking the time and integrity to clean up a very unprofessional situation.
Saludos,
Ken
Thanks. I hope “Jake” reports this so called “adviser” to Garrett.
I agree!
Pingback: Garrett Encourages Reporting of Unprofessional Behavior of Advisers | Late Bloomer Wealth
Okay, well done, but what happens to the self-serving advisor? How does this article protect us from her?
James, your questions are excellent and complicated too. I am also learning how the Garrett and NAPFA advisers work by talking with them. This is what they tell me: The vast majority of clients know nothing about their investments, so the adviser will charge both the hourly fee and the AUM because of the work demand. I agree to a point because it depends on what the AUM is. If it’s 1.0% or more, that’s too expensive. But I digress.
But My reader knows a lot more than the vast majority of clients seeking help. For my reader, this adviser did not commit a crime but failed to follow the Garrett Planning Networks mission mstatement to either take on my reader’s request to get paid by the hour or simply tell my reader that she was too busy. Based on my conversations with a few advisers, IMO, I think they really don’t know what to do with a client who knows more than their average client. This adviser made a mistake and the founder did talk with her about this and hopefully, she will be more clear with clients in the future.
On your second question: The article protects you from not just this adviser but any adviser who forces you into anything that you don’t want them to do, or to sell you a product that you do not understand.
In all cases, the founder Sheryl Garrett wants to hear from you about any of the 350 Garrett Planning Network advisers who fail to meet up with the founder’s standard.
Read this from the founder that will hopefully answer your question too: https://old.latebloomerwealth.com/garrett-encourages-reporting-of-unprofessional-behavior-of-advisers/?preview_id=5003&preview_nonce=f34605aa64&_thumbnail_id=5136&preview=true
Update: It took a while, but this adviser is no longer with Garrett Planning Network.