The Value of a True Financial Review

Updated: Oct 15, 2020



As I often do with my blog, I’m going to vent a bit due to the unskilled and amateurish attempts of others who have gone before. Sometimes we learn why we, and others, do things as simply a response to others - and then that response became a habit.

The financial services industry has a lot of well-meaning intentions, but poor communication patterns. New agents and advisors frequently offer “2nd opinions”, a “portfolio review”, or a “policy review”… and more often than not, it just doesn’t work.

Why doesn’t it work? One is because most account holders and policyholders just don’t see the need or the value. The second reason is that people KNOW that, if you open the door a crack and let them in, they’ll just want to tell you “how much better off you’d be if you had gone with them”. No one wants to be told that they made a mistake!

If an agent offers a “policy review”, what do you really need to know? How much coverage you have, is the policy in-force, and is the payment affordable? (If it wasn’t affordable, you would’ve dropped the policy.) The agent will then probably talk about how much you “should’ve” bought, how it’ll be more expensive to get it today, but better to get it taken care of now.

If an advisor offers a “portfolio review”, it’s just a chance for them to show off “how much better” their clients returns have been OR how smart they were to avoid certain other investment recommendations. Or perhaps they just want to give an “economic weather report” on the stock market and perhaps make “token allocation changes” in your portfolio – possibly with the illusion that they are “managing your money”.