Kids: Take my advice. See my advisor.

By Joel Dresang

At my parents’ 50^th wedding anniversary, my dad stood in a banquet room before family and friends with a list of accomplishments. In addition to his house and car and fishing boat, Dad’s brag sheet included the residences and vehicles of my six siblings and me. He might’ve even mentioned our pets.

It long baffled me why Dad chose to list the stuff of his kids among his life’s achievements.

Flash forward to a couple of months ago. Now that they’re working full-time with benefits, two of my daughters decided separately to meet with an investment advisor. Each told me afterward that the meeting was helpful and that they planned follow-ups. The advisor – whom I happen to work with – mentioned simply that each is in a good place. And I felt a sense of relief.

So now I think I understand what my dad was getting at. It’s an accomplishment to feel that your kids are financially secure. Sure, they’re not set yet. And I’ll still worry about them, as is my fashion. But they’re OK for now. And, they have someone I trust to guide them.

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Dave Sandstrom appreciates how I feel. Over the years, he has had a number of clients send him their adult children.

“You may want to think about introducing them to your advisor because there’s consistency, there’s trust that’s already established,” Dave explains. “It gives the parents confidence, knowing how we do business, that they shouldn’t have to worry about their kids. If they’ve worked with us for a while, they know how we invest, and they would expect their kids to get similar treatment.”

As with any new client, advisors consider the personal financial ambitions and risk tolerance of clients’ children, Steve Giles notes.

“It’s not any different than a retiree coming and visiting with us for the first time,” Steve says. “What are your goals? What’s your outlook? What are you trying to accomplish? How can we meet you at a place where we can help you achieve not just your longer-term goals but maybe your more intermediate or shorter-term goals?

“Our goal here,” Steve says, “is to take anybody at any time and try to come up with a plan that is superimposed on their situation.”

Steve and Dave see intergenerational benefits when parents refer their adult children to their advisors. For instance:

• Financial literacy they gain from the advisors can help the children become more self-reliant.

“If you don’t have a giant nest egg to leave your kids, you want them to be able to make their own, to save and provide for themselves,” Dave says.

• Money savvy will help the children better manage whatever wealth the parents pass along.

“Higher net worth people want to have their kids know how to handle money,” Dave says.

• Familiarity with the advisor will help the children carry out the parents’ estate plans.

“Too often, we have kids of clients who call us up; they don’t know who we are, what we do, what our role is, how we were helping their parents. And they’re at a loss,” Steve says.

• Being able to work with the children enriches the connection between the advisor and the parents.

“You’re good enough to bring them as a referral, so the advisor doesn’t want to let you down as a good client,” Dave says. “There’s value to the family there. If I have a good client that I like, I’m going to take care of their kids – because I like them. We have a relationship.”

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My dad had humble origins. He was from a family of 13 children. His father, a self-employed carpenter, built the family house and lost it during the Great Depression. Through dogged work and ingenuity that didn’t include a college degree, my dad earned a comfortable retirement from a technical management position in manufacturing.

So, when he listed his achievements, Dad considered not only how his life had progressed but how his children’s futures were more secure.

My dad didn’t try to teach me about money as I grew up. But I drew from his example that I should seek steady employment, spend little and save the rest.

Beyond that, I’ve had to learn on my own. It helps to work where I’m surrounded by financial professionals managing the wealth of others. Previously, I spent years writing about personal finances for national and regional news publications. As a reporter, I learned that unless I wanted to become a financial professional myself, I’m better off trusting someone else to advise me.

Likewise, I’ve known better than to tell my kids what to do with their money. I’ll answer their questions, if I can. But I’d prefer they seek advice from someone qualified to know what they’re talking about. In the long run, too much is at stake.

Besides: “Kids are just more receptive to receiving advice or being more open to options and guidance from someone who isn’t their parent,” Steve says. “I think human beings are more receptive to getting advice from someone they know is a professional.”

Noting that well-intended parents are capable of inappropriate advice, Dave agrees.

“If the parents are really interested in just helping the kid, then they shouldn’t be that involved,” Dave says. “Make the introduction and get out of the way. That’s the way to do it. At some point, you’ve got to trust the kids to take the reins.”

Joel Dresang is vice president-communications at Landaas & Company, LLC.