As part of the Pitfalls Series, Dustin and Danielle are talking about investing in the wrong advisory team. When you start your business, you may hire an assistant, a graphic designer, or some other professional who helps you execute and deliver your daily work. Of course, these individuals are highly important to the success of your business. But that’s not what Dustin and Danielle are talking about today. Instead, they’re talking about the professional you choose to work with — and take advice from.

 

HERE’S WHAT YOU’LL LEARN 

• • [06:45] How your perception of money changes as you start earning more

  • [08:13] Why your advisory team is just as important as your staff

  • [08:43] One of the common mistakes we see regarding who entrepreneurs trust

  • [09:40] Types of individuals on your advisory team

  • [10:58] Why bookkeepers, coaches, CPAs, and attorneys are great… but not for everything

  • [12:48] The limits of what to expect from other advisory team members

  • [14:30] The risk of “conflict of interest” when it comes to taking advice from certain professionals

  • [15:24] Hustlers and friends and how to spot them

  • [16:28] Why you should be talking to other business owner and entrepreneur friends about their advisory team

  • [19:24] Why CERTIFIED FINANCIAL PLANNER™ professionals are like quarterbacks

  • [20:47] How to find the right advisory team for you

WHO IS QUALIFIED TO GIVE YOU INVESTMENT ADVICE?

Because investments are still one of those “mysterious” topics that not a lot of people have exposure to, it can be really hard to know who to trust and whose advice to actually follow. When you have a cousin, friend, or fellow business owner who has made a series of investments and seen (or told you they’ve seen) great returns, it can be tempting to follow in their footsteps or take their experience as fact. But as Dustin and Danielle explain in this episode, that can be a huge mistake.

In general, entrepreneurs and business owners tend to have a number of professionals they rely on and trust. Your bookkeeper or Certified Public Accountant may help you manage your day-to-day business income, pay taxes, and even cut overhead costs. But none of that means they’re qualified to give you investment advice.

Executive coaches can help you grow your business and even resolve some of your mindset blocks around money. But that doesn’t mean they have experience with investments and, therefore, shouldn’t be giving you investment advice. Attorneys are extremely useful, especially when it comes to helping you structure your business or apply for trademarks, like Joey Vitale of Indie Law can. But they’re not experts in investments.

Insurance agents will help you protect your business, home, and life… but they’re also not investment advisors. Friends and business owners who have a “great investment idea for you” are — you guessed it — not to be trusted for investment advice.

Of course, Dustin and Danielle aren’t saying you should listen to these experts’ opinions and experiences with investments. You just shouldn’t take their advice as your own plan of action. Especially when these people benefit from your decisions. CPAs, for example, may only recommend investments that save you on taxes, which doesn’t always benefit you in the long run. Attorneys may recommend investments with a certain professional with whom they have a referral agreement. Friends and business owners with investment ideas are usually just hoping to get money to support their business or ideas.

At the end of the day, it doesn’t matter who these people are. If they’re not qualified to offer investment advice, Dustin and Danielle recommend that you take what they say with a grain of salt. Then find a real professional who can offer you the guidance you need.

 

 

CERTIFIED FINANCIAL PLANNER™ PROFESSIONALS ARE LIKE QUARTERBACKS

Dustin and Danielle break down your advisory team in this episode, explaining that each of the professionals above all play their own role. But sometimes, you don’t have these roles filled yet. If that’s the case, a CERTIFIED FINANCIAL PLANNER™ can serve as your advisory team’s quarterback; they know about taxes, estate planning, insurance, etc. but they’re looking at the high-level picture. Once they know the play, your CERTIFIED FINANCIAL PLANNER™ can pass the ball to other experts who can help make the most informed decisions that are right for you. A CERTIFIED FINANCIAL PLANNER™ can also tell you, based on your situation, which other members you need on your advisory team.

You’ve got your team in place when it comes to your staff and daily operations, but you need to make sure that you have the right experts on your side as well. Recruiting the wrong advisory team can be a lot more detrimental to your business (and yourself) than just hiring the wrong assistant, for example.

Tune into the full episode to hear how Dustin and Danielle explain why an advisory team is so important, who should be included (and excluded), and why investment advice is so valuable for you, your business, and your future.

If you’re thinking about hiring a CERTIFIED FINANCIAL PLANNER™, you can take the quiz below to see if Toujours Planning is right for you.

This material is for general information only and is not intended to provide specific advice or recommendations for any individual.

Resources & People Mentioned

• • Our Resource Vault
  • Pitfalls Series: Investing in the Wrong Arena
  • Are we a good fit for your financial planning needs? Let’s chat.

 

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