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Getting Referrals

June 24, 2014

We needed a really good handyman and had trouble finding one.  We decided to ask the person that mows our lawn if he knew someone to be recommended.  They are reliable, show up when they are supposed to, charge a reasonable price and offer a full range of additional services we occasionally need that they always do well.

When we need a medical specialist, we trust our internist.  When we need a root canal, our dentist makes the referral.  At no time do we not trust the sincerity of the person we ask.  This got me thinking about financial referrals.

When a client needs a payroll service, casualty and property insurance broker, actuary, attorney or bank loan, their accountant makes the referral.  However, there seems to be some distrust when an investment manager or life insurance agent is recommended.  The client thinks there are undisclosed fee sharing arrangements or commissions and is hesitant to accept the recommendation.  In some cases, the accountant is reluctant to even make a recommendation because of this type of thinking.

Well, undisclosed kickbacks and commissions might be paid and those that engage in this are likely committing unethical or possibly illegal actions.  But, in the vast majority of situations, this is not the case.  Why not draw on the wide experience of your most trusted professional for recommendations of proven specialists in areas that are highly critical for your future success and family wealth security? 

The next time you feel you need assistance, a second opinion, or a new look at your investments or life insurance, ask your accountant for a referral.  Also ask what fee arrangement he has with the person he is referring, if any; and then meet with the person they are referring. 

You do that looking for a handyman; do it with the people you trust your financial future with.

One Comment leave one →
  1. Robert Nagler permalink
    June 24, 2014 2:30 pm


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