t to be a disappointment, they’d quickly be replaced. Each crop’s performance would be tracked carefully so under-performers would be thinned out.

Any gardener knows that a well tended garden results in less loss and a bountiful harvest. When your garden is being ‘actively’ tended, you can sleep at night, knowing your harvest is less likely to result in your going hungry in the coming winter.<

Choosing a financial advisor can be one of the most important decisions you’ll ever make. If your advisor’s management style matches yours, it will allow you to sleep at night. If it doesn’t, you may be forced to endure countless sleepless nights. In part 2 of this series, we’ll look at the most important aspect of all to consider when choosing an advisor.

Simply put, how will this advisor manage your money? Once your money is invested, will they passively manage, only reviewing your account once or twice a year? Or will they actively manage it, having systems in place to constantly monitor each investment and make changes whenever necessary to protect your money, minimize your losses and maximize your returns?

Let me explain by using the analogy of a garden. Imagine paying someone to plant your garden and manage the harvest. A ‘passive’ gardener would plant seeds for you, but once they’re in the ground, they’d move on to plant their next customer’s garden without doing much to maintain yours. They wouldn’t bother pulling weeds, thinning out less desirable plants, watering or fertilizing. Changes in the weather, such as a late frost or summer drought, would pass with little concern on their part. Passively tended gardens place your harvest at risk and may not provide enough to last through the winter.

On the other hand, an ‘active’ gardener should have a far better result. They’d have picked the best seeds possible, and carefully monitor each plant’s progress. During a frost, they’d take action. During a dry season plants would be well watered. If a crop turned out to be a disappointment, they’d quickly be replaced. Each crop’s performance would be tracked carefully so under-performers would be thinned out.

Any gardener knows that a well tended garden results in less loss and a bountiful harvest. When your garden is being ‘actively’ tended, you can sleep at night, knowing your harvest is less likely to result in your going hungry in the coming winter.<

age your money? Once your money is invested, will they passively manage, only reviewing your account once or twice a year? Or will they actively manage it, having systems in place to constantly monitor each investment and make changes whenever necessary to protect your money, minimize your losses and maximize your returns?

Let me explain by using the analogy of a garden. Imagine paying someone to plant your garden and manage the harvest. A ‘passive’ gardener would plant seeds for you, but once they’re in the ground, they’d move on to plant their next customer’s garden without doing much to maintain yours. They wouldn’t bother pulling weeds, thinning out less desirable plants, watering or fertilizing. Changes in the weather, such as a late frost or summer drought, would pass with little concern on their part. Passively tended gardens place your harvest at risk and may not provide enough to last through the winter.

On the other hand, an ‘active’ gardener should have a far better result. They’d have picked the best seeds possible, and carefully monitor each plant’s progress. During a frost, they’d take action. During a dry season plants would be well watered. If a crop turned out to be a disappointment, they’d quickly be replaced. Each crop’s performance would be tracked carefully so under-performers would be thinned out.

Any gardener knows that a well tended garden results in less loss and a bountiful harvest. When your garden is being ‘actively’ tended, you can sleep at night, knowing your harvest is less likely to result in your going hungry in the coming winter.<

to plant your garden and manage the harvest. A ‘passive’ gardener would plant seeds for you, but once they’re in the ground, they’d move on to plant their next customer’s garden without doing much to maintain yours. They wouldn’t bother pulling weeds, thinning out less desirable plants, watering or fertilizing. Changes in the weather, such as a late frost or summer drought, would pass with little concern on their part. Passively tended gardens place your harvest at risk and may not provide enough to last through the winter.

On the other hand, an ‘active’ gardener should have a far better result. They’d have picked the best seeds possible, and carefully monitor each plant’s progress. During a frost, they’d take action. During a dry season plants would be well watered. If a crop turned out to be a disappointment, they’d quickly be replaced. Each crop’s performance would be tracked carefully so under-performers would be thinned out.

Any gardener knows that a well tended garden results in less loss and a bountiful harvest. When your garden is being ‘actively’ tended, you can sleep at night, knowing your harvest is less likely to result in your going hungry in the coming winter.<

oncern on their part. Passively tended gardens place your harvest at risk and may not provide enough to last through the winter.

On the other hand, an ‘active’ gardener should have a far better result. They’d have picked the best seeds possible, and carefully monitor each plant’s progress. During a frost, they’d take action. During a dry season plants would be well watered. If a crop turned out to be a disappointment, they’d quickly be replaced. Each crop’s performance would be tracked carefully so under-performers would be thinned out.

Any gardener knows that a well tended garden results in less loss and a bountiful harvest. When your garden is being ‘actively’ tended, you can sleep at night, knowing your harvest is less likely to result in your going hungry in the coming winter.<

t to be a disappointment, they’d quickly be replaced. Each crop’s performance would be tracked carefully so under-performers would be thinned out.

Any gardener knows that a well tended garden results in less loss and a bountiful harvest. When your garden is being ‘actively’ tended, you can sleep at night, knowing your harvest is less likely to result in your going hungry in the coming winter.

Those of you who are avid gardeners wouldn’t dream of being ‘passive’ with your treasured plot of earth. But unlike the relaxation associated with ‘active’ gardening, ‘actively’ managing your finances would be a stressful do-it-yourself job.

When it comes to financial advisors, probably 90% are ‘passive’ gardeners; especially those recommending Equity-Indexed Annuities and Variable Annuities. After ‘planting’ your money in high-commission products, they move on to ‘plant’ someone else. They might look at your account once or twice a year, unless you have new money that needs to be ‘planted’. Once all your money is ‘planted,’ they lose interest.

When the market or the economy turns sour, they stick to their buy and hold strategy, telling you to hang in there. They’ve made their money, what’s it matter to them if your investments take a hit? They reason that the market will go back up, but how much sleep do you lose in the process?

While ‘passive’ advisors get paid to ‘plant’ your garden, ‘active’ advisors are paid to ‘tend’ your garden. Most are paid a small percentage fee on a yearly basis, so they are motivated to do a good job of managing your money. If they don’t, you can easily fire them and choose someone else. You don’t have high commissions to earn back or surrender fees to lock you in.

All fee-based advisors aren’t created equal. Some big firms are moving to fee-based accounts, but in reality they’re still holding to their passive money management strategy. If you want someone to actively manage your nest egg, ask them what specific systems and