I occasionally get the question: "but what if something happens to you?"

Meaning, if I die or become incapacitated, where will my clients turn for help?

This question is often planted by brokers to imply that because they are employed by a big firm, their clients have a built-in succession plan (brokerage firms stand ready with a replacement, but a "court-appointed" broker typically isn't the type that is sought after).

So, here's the answer:  If I die or become incapacitated, you'll have to find a new financial planner.  Just like if your doctor dies, you'll have to find a new doctor.  Or, if your attorney dies, you'll have to find a new attorney.

A better question to ask yourself is:  "if my broker bails to another firm, do I want to be in the middle of a signing bonus quarrel while each party's attorneys squabble over who I belong to?"

If you are my client, you don't belong to me.  You've trusted me with the privilege of working hard on your behalf.  You are free to leave any time and I hope that the quality of my work acknowledges that I don't take you for granted.

Alas, if you must have a backup plan, here it is:

-- 1 Corinthians 4:2

My wife has an expression to describe things that are designed poorly.

She says "it must have been designed my a man."

Take this refrigerator for example:

Freezer on the bottom?  Dumb.  Two handed water dispenser on the inside?  Dumber.

 

Most brokerage firm technology platforms are just as bad.  They are a throwback to the days when you (meaning someone... I'm not exactly sure who) would walk into your broker's office and say "Hey, Jim-Bob... Buy me 200 shares of Acme Rocket Boot Company!"

Normal people don't do that.  Intelligent investment plans are based on percentages.  "40% to XYZ fund" for example.  Dumb brokerage firms make you convert percentages to dollars, dollars to shares (in the case of stocks or ETFs), and then enter each trade separately.

Even if you are only investing in a handful of funds, and only making occasional changes, this technology wastes time and creates multiple opportunities for you (or your investment adviser) to make potentially costly mistakes.

Here's a much better alternative: