IMAGINE YOUR ADVISOR WINNING AN OSCAR

... and the winner is ...

The Academy Awards anoint the year's “best” films. Let’s say your advisor is in the running. What category would apply? Let’s explore a few.

Best Actor/Actress

Actors work from scripts that others have written. Advisors do too but may also improvise. Over the years, they hone their skills. You might not realize that a script is being used because you’re seeing a practiced performance for the first (and perhaps only) time.

You may infer the actor is like the character played in real life. That need not be the case. The nominees are rarely ugly but does appearance imply better skill?

Best Director

Advisors are rarely directors. They're more likely actors. Maybe they are directing you towards a sale? Directors have problems staying within budget — in this case yours. Was the $207 million remake of King Kong in 2005 really necessary? Maybe the 1933 original was enough.

Best Screenplay

On the screen, we see the same stories retold with minor changes. With Netflix, you quickly see the lack of originality. With advisors, that's good. A creative advisor could turn out to be a Bernie Madoff (New York), Scott Rothstein (Florida) or Earl Jones (Montreal). Tried and true works well, unless the script is outdated.

Best Special Effects

Advisors make their offerings look great. Sometimes better than reality. Just because you want to believe doesn't mean you should.

Advisors may use magic like the power of compound interest. Results depend on the assumptions used and human behavior. Investment returns are volatile and we are too.

Best Foreign Language

Does your advisor seem to be speaking a foreign language? If you need a translation, maybe you’re ready for an advisor you understand.
If you easily understand your advisor, you might be facing a different problem: simplification. Life isn't black and white. Just because we understand everything being said doesn’t mean that everything we need to understand has been said.

Best Editing

Editing makes a huge difference. Sometimes the entire story changes. Advisors may leave out the details they don’t see as pertinent to their goals. Maybe you want to see the raw footage and decide for your self what matters.

This re-edit changes Mrs. Doubtfire from a comedy into a horror film.

The Judge

Maybe your advisor is the judge selecting the winner for you. This simplifies your life but results may be suboptimal. We can’t even decide on the best coffee.

… and the loser is …

Links

• Imagine your advisor in the Olympics
• Imagine James Bond selling insurance
• The risk of financial innovation
• Why advisors become advisors
• Do you understand compound interest?
• $1,000,000 after taxes on investment growth
• Do your advisors help with your financial literacy?
• If you have/had/want money, read Pound Foolish

Podcast 208

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PS Do you really care who wins the Oscar?