4 Things Do-It-Yourself Investors Want

Nick Hodges, CPA/PFS, MBA, CFP

On a recent foray into the world of financial bloggers, I read a thread started by Jim, entitled “Your Take: Do You Trust Financial Advisers?” I was interested to read what savvy, do-it-yourself (DIY) investors had to say on the topic. This post by Staci started me thinking:

“I read A LOT of books on finances, investing and follow a lot of financial blogs. Generally, I don’t find that financial planners add much value beyond what I already know. I’m always searching for that one planner that will give me some super compelling financial advice unlike anything I’ve ever heard or read to help us grow our money and make wise investments, but I always feel disappointed when we meet with someone.”

When I read this, I immediately thought of Jeremy (name has been changed.) I met Jeremy when he interviewed me for one of his articles. He shared Staci’s opinion. As a financial reporter, he had an education and some experience in the financial world. On top of that, he was very, very bright and technically oriented enough to consider the finest of details. Like Staci, he was looking for that financial advisor who could go beyond the generic and provide ‘something more.’

At the end of my interview, I invited Jeremy to experience our process of working with clients. He took full advantage of our technology resources, pressing my service team to their fullest in implementing our programs for collecting all his information in one place. But that’s not when Jeremy thanked me, Jeremy was used to working with advanced technology. He did, however, LOVE the depth and breadth of our resource technology because it really did bring all of his information together in one place – something he had been looking for.

#1: DIY Investors WANT access to in-depth resources and technology.
What they NEED are resources and technology that help them see their entire financial picture.

With all of Jeremy’s information collected, it was time to start the process of communicating. In Jeremy’s past, this usually consisted of a one- or two-hour interview of canned questions. He was surprised when I explained to him, that this was just the beginning of a dialogue between us because we wanted to work with him and his family for a very long time. Jeremy responded by pounding me with a series of questions that would require a great deal of analysis. And analyze, we did. We continued to communicate through spreadsheets and emails (Jeremy’s preferred form of communication.) But that’s not when Jeremy thanked me, he was accustomed to reviewing vast amounts of information. He did comment however, that we were the first group to send him MORE information than he needed AND noticed that it had been individualized for HIM.

#2 DIY investors WANT information, LOTS of information.
What they NEED is personalized information based on their unique life situation.

We provided Jeremy with personalized, detailed information that answered many of his questions – BUT, we were not done yet – in fact, we were just beginning. I sent Jeremy a series of individualized questions that needed detailed answers from him and his wife, Judy (name has been changed.) It was then, that we scheduled a joint conversation. As I said, Jeremy was very, very bright. He was able to converse at a very high level of understanding on many financial issues. However, Jeremy’s wife, Judy was not nearly so interested in discussing all the fine details of investing. She already that knew Jeremy was bright and well informed; she wanted to find out if any of Jeremy’s great ideas were going to get them in trouble financially.

My delight was that Jeremy took me seriously when I told him I wanted to look at everything. Here in his resource account were ALL the details I had requested. What could not be entered directly had been digitally filed for my review. We jumped right into our conversation. Jeremy wanted to talk about taking company stock out of his 401(k) plan and pay the taxes on it now BECAUSE HE COULD. I answered with, “Let's walk through the methodology of this action AND it’s personal application point by point.” And we did. It’s not often that a client has the ability to discuss the finer points of every aspect of an action like this, but Jeremy did. When we got to the end of our discussion, Jeremy made a DIFFERENT decision about his company stock. It was then that Jeremy THANKED ME for doing such a good job for them.

#3 DIY investors WANT detailed discussions about their options.
What they NEED is the additional clarity and judgment that only comes from experience.

As we wrapped up our conversation, it was then that Judy THANKED ME. She was glad that I was able to answer ALL of Jeremy’s questions with answers that were clear enough for her to understand. She said she felt she could trust me to be a good foil for Jeremy’s ideas about what to do with their financial future.

#4 DIY investors’ (partners) WANT someone they can trust.
What DIY investors and their partners NEED is to find a financial advisor they can trust to keep them from making costly mistakes with their money.

Financial advice is not just about creating a plan or selling an investment. The financial professional you work with needs to bring VALUE to the table, value you cannot find anywhere else. DIY investors like Jeremy are looking for more in a financial advisor, one that will bring resources and technology, information and discussion, and experienced judgment they can apply to their unique financial picture.

If you aren't working with someone that makes you think, rethink, and revise your body of information, you aren't working with the right financial advisor for you. If you aren’t working with someone that will bring detailed discussions to the table with you, you aren’t working with the right financial advisor for you. If you aren’t working with someone that can bring you choices across your tax and financial worlds, you aren’t working with the right financial advisor for you. If you aren’t working with someone you and your partner can trust, you aren’t working with the right financial advisor for you.