The Nine Core Values of Financial Advice
January 05, 2015What does the game of golf have in common with the financial planning profession? According to my colleague Paul Wannemacher, there are many parallels between the two. The financial planning process is all about aligning your money and wealth with your life goals and personal values. As Paul explores below, professional financial advisors have an important role in this process and your financial future should be treated with the highest levels of professionalism and integrity:
I got a really rare gift this Christmas season: the chance to play a round of golf in northwest Ohio on December 23rd in normal clothes and not a snowsuit! Not only were the courses ready, but they were even dry and in pretty nice shape! My son paid the way – $10 each for the round – so he was super-happy with our bargain too. You just have to smile sometimes when a little good luck means a relaxing treat you didn’t count on.
Our round reminded me of the years when I took my son for his early lessons and he got to be in the First Tee junior golf program. He is 23 now but still remembers those lessons. The initial packet he was given, “The Nine Core Values of Golf,” was a key part of the learning. I found the list recently going through his stuff with him over his Christmas visit and those core values are still incredibly true not only for golf but with other pursuits in life… like financial advising!
I guess it makes sense since that so many financial advisers like to play golf (some are so good that they make me wonder…where DO they spend the most time?). It seems to me that if financial advisers would just remember these core values in their office life like they are supposed to be played out on the course, the whole industry would “heal itself” from the dislike and suspicion consumers sometimes have for it. It is never wise to lump an entire profession with a small group of wolves in sheep’s clothing so it’s important to look for an adviser who knows how to play by the rules. Here are those values, for all of us to learn from:
Honesty – In golf, players regularly call penalties on themselves and must report an honest score. Look for an advisor whose practice is seen as above reproach, doesn’t look to bend the rules, teaches clients the risks of different investment types, and only invests after having a client’s full understanding.
Responsibility – Golfers are asked to fix their divots, rake bunkers and keep up the pace of play. Look for an adviser who sees their reputation as affecting the whole body of advisers and is willing to treat the client’s wealth as a sacred bond and responsibility.
Integrity – Golf is a game of etiquette and composure. An advisor dealing with people’s finances should always remember that integrity means always doing the right thing, even when nobody is looking. Can your adviser be trusted with your wallet on his or her table?
Sportsmanship – Golf honors playing by the rules and winning and losing with grace. Seek advisers who can control their “animal spirits” of competition and bravado, respect and assist other advisers, and are willing to be good teammates with other professional advice partners like your lawyer, accountant or family members.
Judgment – Golf demands the player pick the right club for the shot and know when to be quiet or move play along. Seek advisors who don’t try to force the wrong “club” into your hands when making your investment and financial planning choices.
Respect – A real golfer is deferential to other players and honors the traditions of the game. A real adviser seeks to educate his clients and respects them regardless of their education level or personal issues.
Perseverance – Playing golf means failing – a lot – over and over and still finishing up with a smile. Tested advisers who have been through up and down markets can help clients see through tough times and temper their enthusiasm during market booms.
Confidence – Better gold comes with better practice and constant learning. An experienced adviser who makes lifetime learning a priority is more likely to be self-assured when advising you – seek advisers who’ve taken the time to gain difficult credentials like the CFP, CPA, CFA and CLU/ChFC.
Courtesy – Rudeness might be creeping into our culture but it still has no place on the golf course. Good advisers acknowledge the help of their support team and other advisers and are quick to pass around the kudos and credit.
Finding a good golfer as a financial adviser won’t guarantee your investing success, to be sure. But finding one who plays like a good sport and studies their craft constantly gives you a better chance your finances won’t end up in the pond! If you are considering working with a professional financial advisor, you can use the resources below to help you verify this person has the core values mentioned above to work in your best interests at all times.
Resources:
How to choose a financial planner
How to hire a financial advisor in the top 2%