Getting Personal Is Stictly Business

I spoke with Richard, 51, the CFO of an apparel company in Los Angeles. He is a CPA and his career spans from a partnership in an accounting firm to CFO of different companies ranging from a Law University to multiple clothing brands. Growing up in New Jersey as the son of a wealthy CPA/lawyer father, Richard has been in the money business for years. And through it all he's come to one conclusion... he's not that smart.

He's great at what he does, but when it comes to investing his and his family's money, he looks to his financial planner to be the brains behind it all. Lorraine, located in New York City, is a woman who has been managing this family's money for years. Richard deals with Lorraine, not with the bank she's associates herself with. He could care less if it was Bank of America, UBS or Credit Suisse, all he knows is that if Lorraine ever left her bank, Richard would follow her. "It's about the person, not the bank."

And what's most important about their relationship is that she provides him with a personal touch. She calls him every month or so, just to give him updates, share new investment opportunities and to say hello.

However, this relationship is strictly business. As Richard puts it, “being friends with your financial planner can be dangerous." He would never hire a friend to manage his money… the level of trust and respect is just not there. This is a business relationship that requires business management, not tickets to a Lakers game. Richard doesn’t want to be shmoozed and “sold” to, he just wants his planner to watch his money and help it grow. With Lorraine, Richard likes that she doesn't "sell" to him... if he wants something he asks for it. They talk business, and money not movies and sports.

He continues this relationship because Lorraine understands Richard and his family and what their money needs are. He feels like his 1 million is treated just as well as the other guy’s 50 million.

While the relationship is functional, the personal touch and understanding that Lorraine provides Richard with is what keeps their relationship going year after year.

thought: build a relationship but not a friendship