Use A Strategy

People with whom we meet for the first time are sometimes taken aback by the process. Generally, the public handles their investment decisions at their financial institution. Having worked at a major national financial institution for almost 15 years, I am well familiar with the process.

Clients would come into the branch wanting to "place an order" and a limited menu would be brought out. A selection would be made, and the client would leave the branch, receipt in hand, happy to have survived yet another encounter relatively unscathed.

This last comment may sound harsh, however I recall reading a study from the early 90's which found that the general public would prefer to go to the dentist than to have to go to their financial institution! Being a branch manager at that time, and a long-time loyal employee, I was appalled. However I have come to understand those feelings (especially now that I am on the other side of the counter).

Each time you make an investment decision it should be part of a bigger plan., not just a "drive-through order" in an attempt to get the ordeal over with as quickly as possible.

It is not unusual for us as advisors to meet with clients for 2 to 6 hours, over a series of initial appointments, before a menu is even brought out. This is done so that we can get to know their needs, feelings, and wants. We must know their income tax situation, their short and long term plans and goals, their family situation and numerous other issues before any kind of a valid recommendation is made. Even before specific investment recommendations are made, concepts are discussed and a strategy established to meet our clients' objectives and comfort levels. Only once a strategy is established are specific products sought out which would best fit the plan.

These strategies change over time with changes in the clients' lives and objectives, as well as legislative, environmental and product changes. There is no one menu that suits everyone. So the next time you need to order off the "fast food" menu at your financial institution, check out a few other options first. No matter how you handle it though, ensure your decision is part of a master plan.

Carol M. Tichelman, CFP, with Partners in Planning Financial Services, Ltd., can be reached at
(604) 792-8111 May 14, 2002