I rarely go to a restaurant without looking at online reviews. Nor does he gulp down a bottle of fizz without exploring the Vivino app for evaluation.
As we continue to endure uncertain economic conditions, I have been reevaluating whether a financial services provider is right for me and the challenges ahead. I rely on online reviews and financial advice. Is my skepticism well-founded, or am I making choices based on unfounded assumptions?
Making money is one thing. Once you have it, how can you maintain it? Who is best to advise you and how can you make decisions that will help your investments grow and prosper? Surely the internet and groupthink recommendations are worth considering there is.
My grandfather was a wise man. Over the years, he created a list of people he would meet. Dentists, doctors, tax experts, lawyers, accountants, etc. And, of course, a financial advisor. His Negro contact book was comprehensive and comprised of the best. Even if you don't know the answer to a particular question, you're sure to know someone who does. And he was also very good at recommending restaurants.
Perhaps that's how Internet recommendations should be, too. Sometimes it can be an effective method. Sometimes I lie like a mischievous 8-year-old.
A few weeks ago, while wandering the streets of Paris, I had a pretty strong appetite attack. Even if no one recommends it to you, you can always stop by most cafes and get a delicious croissant. However, the feeling of hunger was more pronounced. We were in Paris and it was lunchtime so we wanted a meal rather than a snack.
As with many large cities, quality varies widely and some restaurants are downright terrible. Even in Paris. My French friend didn't answer the phone. So I consulted with another friend of mine, Google Sensei.
There were countless options, but one shined. Vivian, a family-run bistro, is tucked away in a covered historic quarter and is a place we would never have found without a recommendation. The review gave it a score of 4.8 out of 5. When the piping hot soup arrived with just the right amount of melted cheese on a toasted baguette, I knew I had arrived at the right place.
On the same trip, we found ourselves wandering the Rue Champagne in Epernay. The region has 319 villages or “crus” and more than 16,000 producers, many of whom produce just a few thousand bottles a year. Finding great produce is much easier with the app. I had never heard of Marion Bosser before. Google gave this house a rating of 4.8 and Vivino's Premier His Cru received his rating of 4.2. When I opened the bottle over the weekend, I found the small bubbles and fruity aroma to be a delicious opener perfect for a pre-dinner drink.
But if you want to take control of your money, you can't trust online advice. Probably because many of the reviews focus on customer service and are not driven by investment performance. And positive reviews often feel “adequate.”
You've been considering whether you should leave your investments to your current advisor or move to take advantage of lower fees and a different investment strategy. Online research revealed that the wealth manager I have been using for several years has been rated 2 stars by an online financial advisor. The company said it was “academically questionable due to its high cost and aggressive methodology.”
All I know is that the performance of the funds they manage has been in the top quartile and resilient during these difficult times. I appreciate the personal service I receive, ongoing staffing, and taking personal responsibility for looking after me and my investments.
If I had followed the reviews, I would have switched to an investment advisor that has been talked about for its high fees and suspended real estate funds — rated 4.2 on Trustpilot. This is where financial advice is different from going to a restaurant or buying a bottle of fizz. We're not talking about a consistent product or a service that follows a recipe. What you should look for is expertise and personal service. And an appetite for risk. Apparently the reviews can't be trusted.
If you want to find a new bank account, there are plenty of reviews out there. If you only want your bank to give you interest on cards and savings accounts, it may be worth following some online recommendations. But I want more from my bank than that. Flexibility, personal service and bespoke advice when you need it.
My bank is privately run, but after reading the reviews, I would definitely not choose it. It's at the bottom of the list. Perhaps it's because it's more expensive than the high street version? Or is it because they have a smaller customer base and are less likely to leave reviews, so they aren't evaluated fairly on the internet?
I opened an account there because that's where my family banked, not because they offered pink porcelain pigs to young account holders. I have come to value their advice and service over the years, as others have wondered about having their bank accounts debited and being treated as just another number willing to wait out eternity in an automated telephone answering system. became.
My bank answers the phone within two rings and calls me Mr. Max, not thinking that I want to be called James (which, by the way, I'm not) ). Big banks and major financial institutions may have good reviews online, but they don't necessarily provide the services I need.
There is no substitute for research when choosing financial services. Establish what you want from an advisor, decide your attitude to risk, and weigh whether a big impersonal provider is right for you. I prefer personal recommendations and personal service from people I trust. I wish my grandfather still existed. He will know what to do.
James Max is a television and radio host and real estate expert. The views expressed are personal. X, Instagram, Thread @maaaaaaaaaaaaaa
