Thursday, January 31, 2008

Interrogating my financial planner

Money Magazine's anonymous financial planner provides a list of questions to ask your financial planner to gauge his or her style and truthfulness. I posed these questions to my financial planner, who is of course me.

1. What was your largest mistake over the past 10 years?
Being too conservative after the market declines of 2000-2002 and not getting back into stocks in 2003.

2. Do your financial incentives always line up with my best interests?
I sure hope so.

3. How have your clients' portfolios performed over the past 10 years?
Only slightly better than the S&P 500, unfortunately.

4. If I wanted to buy a couple of broad index funds or ETFs, which would you recommend?
Something by Vanguard.