What Is Your Financial Exit Strategy?


I ask every financial advisor I talk with today what their exit strategy is-How are they going to replace their current income with passive income on a monthly basis. This got brought up this morning because a financial advisor and I were having a “money chat” at Starbucks this morning. He is a big believer in putting his clients managed assists with a firm called SEI. I had never used SEI but he told me they had done a great job for his clients. I had to ask him…When you are in competition with three other advisors and you are all selling money managers-what’s the differentiator? His answer was “price.” You can see what a competitive industry wealth managers are competing in-and why it is harder for new folks in the industry to be successful.

I then asked him what his personal exit strategy was: “SEI manages all my money.” That gave me confidence in him because he was being completely honest. I would have felt very different had he told me all this money was in real estate rentals!! When you are interviewing potential financial advisors I always think this is a good question to ask and then verify.

Related Posts: Cash Flow-Who Can You Trust?
If I Were Hiring a Financial Advisor Today
When to Stop Funding Your 401-k

Steve Mertz
Exit Strategies are Crucial

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One Response to “What Is Your Financial Exit Strategy?”

  1. FIRE Finance says:

    Thanks for the informative post. I was looking for a trackback url but could not fine one. We mentioned your post as one of our favorites in our post Carnivals – Carnival of Personal Finance #66 hosted by FreeMoneyFinance.

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