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A recent Kiplinger article lists ten questions to ask your financial advisor. This one caught my eye.
“6. Check out what car the adviser drives.
Hope that Lamborghini in the parking lot belongs to the doctor next door, not your adviser. A car can indicate how the adviser deals with his or her own money, and that will influence how they will approach managing your investments. “Clients don’t want to see you driving sports cars,” says Richard Rosso, director of financial planning at Real Investment Advice. “I manage myself frugally… I drive a Toyota hybrid. It lasts forever, and it’s safe.”
Being the contrarian, could it just be the adviser is a great investor, a good advisor with lots of clients?🤑. Would you have more confidence if your advisor is a frugal, very used, car buyer?
Frankly, I’d be more worried if the Lamborghini belonged to the doctor who either charges high fees and/or provides a large number of health care services, neither of which is an indication of better quality.
While a Mercedes is many steps below a Lamborghini, it sure isn’t representative of how I (mostly) manage investments- and as many HD readers frequently observe, it’s not particularly well.
By the way, a Lamborghini starts at around $230,000 and goes up to $700,000 with add ons up to an additional $100,000.
NOW, that’s my kind of financial advisor.
A flashy car like a Lamborghini might signal success, but it’s no guarantee of a financial advisor’s skill—frugality could reflect smarter money management. At this we’d rather see advisors parking wisely than splurging on supercars.
Don’t judge a book by its cover. I think this applies to people too.
I agree. There sure seemed like a lot of conclusions were jumped to real fast.
My comment was about the irony. That in trying to paint a negative picture you accidentally described someone that has been a great asset manager.
Personally I’d head away from the super car owner, I’d be worried that they’re chasing thrills, which isn’t a great recipe for investment management.