William Shakespeare on Trust and Financial Planners

May 30, 2008


Professional financial planning is built on a foundation of trust. You entrust not just your money but also your hopes and dreams with an adviser and planner like me. Above all, you want your planner acting with your best interests at heart.

And yet, Shakespeare’s famous advice — "Love all, trust a few" — rings as true today as it did hundreds of years ago. Trust and money can indeed be a dangerous combination 😉

Good financial planners expect to earn the trust of their clients every single day. Early in the relationship, I encourage you to ask your planner:

  • What are your credentials and professional affiliations? Is your compensation aligned with my best interests? Do you have a fiduciary responsibility to your clients? Who are your 5-10 reference clients? Are you affiliated with a broker, insurer, or service provider?

And later on:

  • How are you being paid for the work you’re doing? Would other planners offer the same advice? Are there less risky or more economical ways to do this? How will your advice, specifically, help me achieve my goals? Can I sleep on this advice for a day or two?


In today’s show, I tackle this basic question head-on: how, exactly, do you find a financial planner you can trust? And then, in more detail I look at some related questions: Is there an important difference between fee-only, fee-based, and commission-based advisers? Is it wise to deal with an adviser affiliated with a bank, mutual fund or brokerage? Why is an adviser with a fiduciary responsibility to their clients so important?

As you listen, I’ll share my feelings on the difference between various pay structures, discuss the merits of advice from institutions like Fidelity, Vanguard, or Charles Schwab, and explain why transactional relationships usually aren’t the best for clients or planners in the long run.


Thanks for listening! If you enjoyed the show, please visit the Apple iTunes website and leave us some positive feedback. They often feature shows like this one that have consistently good feedback. If we can do a better job, drop me a personal email. See you next week 😉


Most Recent Episodes

Top 4 Financial Mistakes We Saw This Year! (2022)

We saw some wild financial mistakes this year during the bear market. From making extreme changes to portfolio allocation, chasing the hot dot, and using too much leverage, we’ll talk about some of the biggest financial mistakes we saw in 2022 in this episode.   In...

How Millionaires Build Wealth! (With Dave Ramsey)

Join us for a very special episode as we welcome personal finance radio host and influencer Dave Ramsey to The Money Guy Show! There’s so much misinformation out there about building wealth. We had the pleasure of having a great conversation about how millionaires...

Do These 4 Things with Your Finances BEFORE 2023!

There are unique financial opportunities available at the end of the year - especially this year with the market down. In this episode, we’ll talk about what you need to do with your money BEFORE 2023! In this episode, you'll learn: What you need to do with your money...

How to Win When the Financial World is Burning!

Lately it’s felt like the financial world is in chaos, with rising interest rates, a falling stock market, and high inflation. Let’s talk about how to focus on what you can control and how to minimize the time spent worrying about what you can’t control. In this...

Financial Advisors React to RIDICULOUS Money Advice on TikTok!

The most powerful time to get serious about building wealth is when you’re young. So, what is the younger generation learning? Financial Advice (good and bad) is being produced in massive rates across online platforms and TikTok is the new frontier. Is there good...

Loss Harvesting: Why Wealthy People Love It (And You Should Too!)

Tax-loss harvesting: what is it and should you be doing it? In this episode, we’ll cover everything you need to know about tax-loss harvesting, including whether it makes sense for you, how much it could save you in taxes, and how to eliminate the downside of loss...

The Market is Crashing! (Where Should You Put Your Money?)

The stock market has not had a great year so far. You might be asking yourself, “Since the market is crashing, where should I put my money now?” In this episode, we’ll discuss how to invest when the market is dropping and how to make the most of your money. In this...

Will Rising Interest Rates Tank the Economy?!

The Federal Reserve is raising interest rates to combat inflation, and many are concerned about how it will affect the economy. In this episode, we’ll discuss what rising interest rates means for your wallet and how to make the best of it. In this episode, you'll...

How to Be Wealthy By Age! (Can You Catch Up?)

How much does it take for you to meet your retirement goals by age, and what are some common traps your peers fall into? Learn more about how to be wealthy, mistakes to avoid, and exactly what a little extra saving can do for your retirement income. In this episode,...

Can Money Buy Happiness? (Here’s the Truth)

Money and happiness aren’t directly correlated, but they are intertwined. Some believe that once they have a large, pie-in-the-sky amount of money, they will finally be happy. Others are working towards a more specific retirement number they hope will bring happiness....