Consequences of Deception: Lessons in Transparency from Mrs. Doubtfire

Recently, I re-watched the classic Robin Williams film, Mrs. Doubtfire. I’m sure most of you have seen it. The plot involves Williams’ character being devastated by a bitter divorce. In an act of desperation, he disguises himself as a female housekeeper to spend time with his children held in custody by his former wife. His masquerade is exposed in shocking fashion during a family dinner in a restaurant. The humiliated ex-wife takes him to court and receives full custody of the children. Williams’ elaborate disguise as Mrs. Doubtfire allows him to spend time with his children, but it also creates a web of lies that eventually unravels. The film illustrates how deceit, even when well-intentioned, can backfire and hurt those who are most important to you.

One of the highest priorities of our firm from its beginning has been delivering transparency unconditionally to our clients. In fact, our core principles dictate that proper asset allocation for clients must be simple, transparent and low cost. As our leadership team has grown, our next generation of leadership has made this an obsession.

This includes explaining investment options, potential risks and fees in a straightforward way and being clear about how our wealth management process works. As our website promises, every relationship begins with a financial plan. This process includes disclosure on how decisions are made, how success is measured, and how advisors are compensated.

How do we deliver on this? As a team, we foster transparency in our client relationships through:

Responsiveness - our golden rule!
Regular communication, updates, and involvement in decision-making can further strengthen the bond of trust between you and your advisor.

Ethical practices and credentials:
At DBR & CO, we insist on our advisors completing and obtaining high-level industry credentials. You will notice CFP®, CFA®, CPFA®, AIF ®, ChFC®, MBA and other designations in our advisor roster. I invite you to learn more about these important credentials.

Fee structure and compensation:
Fees can erode returns on your investments. That’s why it is critical for clients to know up front if there are any transaction costs, fund expenses, advisor fees, account management fees or other expenses associated with managing your account.

Set honest expectations about risks and returns:
Your appropriate level of risk ultimately comes down to your willingness to lose some or all of your original investment in order to out-pace inflation. To manage risk successfully, there will need to be open and honest discussion on where you are in terms of your investment starting point, investment time horizon and your tolerance of risk.

Team approach backed by client support and technology:
All of our advisors are backed by a team of client service professionals, investment managers and financial planners. Knowing there is such depth of expertise builds confidence in our ability to serve your best interests.

If a financial advisor operates under a cloak of secrecy, there is a danger of abuse in the trust established with a client. As advisors, we need to ask what we would want (or demand) from those handling our money. Our next generation of advisors put so much credence on this, that most of our employees and their families are clients of our firm. Still, it’s important to remember that maintaining transparency is a two-way street, with the client actively participating in the process. Building a mutually transparent relationship with your wealth manager can significantly increase the chance of success for your financial future.

Thanks for reading,

Dave