Everyone Should Have a "Plan B"

Remember a year ago? Worst case scenarios DO happen.
OCT 05, 2009
By  Bloomberg
A 45 year old, 20 plus year veteran of a Big Firm frustrated me last week. She told me how she was glad that the world had settled down, yet she was still nervous about her current firm. That said, she still was unwilling to look at any other firms because she did not want to distract herself from what she was doing. Okay, I do make a living getting people to move, and a move starts with an interview, so I’ll get how self-serving this may sound out of the way. Fair enough. But let’s have a reality check here. Way back in 2002, looking at the world through post-9/11-Lasix-enhanced eyes, my wife and I had contingency plans for a biological attack, or chemical attack, or nuclear attack on New York. Way back in 2008 (that’s sarcasm for those who are more literally minded), the nation’s financial system almost failed as virtually every Big Firm went through a weekend of death: employees went home on a Friday not sure what firm they would be working for on Monday. Advisors and their clients were panicking. We all hate thinking about it, but sometimes the worst case scenario happens. Having a contingency plan, a Plan B, in case something bad happens is just smart in life and smarter in business. The best Advisors construct financial plans and portfolios for their clients with great care, taking all possible scenarios into consideration. Those same Advisors were also the same ones who carried concentrated positions in their own company’s stock and had their own net worth’s destroyed even as they tried to protect their clients. Unlike most of the world, an Advisor with a book will always have options, somewhere to move in a crisis. An Advisor not knowing where to go before the crisis hits is malpractice to his or her clients. More importantly, it is corporate malfeasance to the shareholders that the Advisor goes home to every day. A wise man once said: “Those who cannot learn from history are doomed to repeat it.” Folks, this "history" happened one year ago. Do you have a Plan B?

Latest News

SEC Says Game Service Roblox Part of ‘Active Investigation’
SEC Says Game Service Roblox Part of ‘Active Investigation’

Short sellers previously said the company was under investigation, though Roblox denied allegations.

Musk’s DOGE descends on CFPB with intention to shut it down
Musk’s DOGE descends on CFPB with intention to shut it down

The Consumer Financial Protection Bureau is in the crosshairs of the Republican group that is widely attempting to dismantle government agencies.

Advisor fighting Finra banishment loses $17.7 million dispute with old firm
Advisor fighting Finra banishment loses $17.7 million dispute with old firm

National Securities Corp. sued the advisor in 2020, alleging breach of contract and unjust enrichment.

Job numbers, inflation leaving room for Fed to hold rates
Job numbers, inflation leaving room for Fed to hold rates

Recent data support a measured pace by the Federal Reserve for the year ahead.

Private assets remain hot despite surging stock market
Private assets remain hot despite surging stock market

Financial advisors are still adding alternatives despite the surge in publicly traded stock prices

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.

SPONSORED Why wealth advisors should care about the future of federal tax policy

Blue Vault features expert strategies to harness for maximum client advantage.