Should You Buddy Up to Your Financial Advisor? Some Say It's Too Big a Risk

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Is it O.K. to become "too close" to your financial advisor, the steward and supervisor of all your money matters? Put another way: is it fine to let your personal finance matters get a little personal?

In many cases, no, it's not. Worse, doing so could mean investment losses and higher fees, and double the financial pain of losing financial assets from a trusted friend.

"Building a trusting relationship with a financial professional is important, because you'll be sharing information about your assets and income, and you'll want to feel confident when acting on any advice you receive," says Dennis Notchick, an investment advisor with Safeguard Investment Advisory Group, in Corona, Calif.

But be wary of becoming too close, he says.

"People often become good friends with a broker who's not doing a very good job for them," says Notchick. "Even when they begin to realize they aren't getting their money's worth, they can't bring themselves to break the ties. The personal relationship has come to mean more to them than their bottom line."

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