When I first started working in Canada as a portfolio manager, I had to be trained on the investment desk to handle international investments for the 250 clients I was managing, with over C$100 billion in assets. The investments were very different from what I was accustomed to in Jamaica.
My supervisor assigned me daily tasks and checked my work as I completed them, which annoyed me.
One day, I questioned why he was constantly watching me, despite my years of experience and an MBA in finance with distinction.
His response was “it’s not that I doubt your capabilities or experience, but I have to trust but verify. I trust what you’re doing, but I have to do my due diligence as well because I’m training you.”
Trust but verify is something that has stuck with me ever since.
Though you may trust a financial institution, a process, or your financial advisor, it’s important to do your independent due diligence, because ultimately, you are responsible for your money.
Nothing is wrong with trusting the system, there are financial institutions and financial advisors whose number one priority is to help grow your money and secure it the best way they can, But you also have to always verify.
Becoming an active advocate for your wealth journey and holding yourself accountable to take necessary precautionary measures with your personal finances can help you avoid unfortunate circumstances.
Do extensive research on any institution or person you’re interested in doing business with and consistently monitor your transactions to ensure your money is doing what it’s supposed to do.
Ask questions, look at the available financial data and available media reports. Additionally, consistently monitor your transactions to ensure that your money is doing what it is supposed to do, because money left unattended is an easy target.
Trust but verify doesn’t mean that you should assume everyone is a thief and cannot be trusted. It means you should always verify everything before getting into business with anyone, even if they seem trustworthy.
While a fiduciary relationship is expected in conducting financial business, ensuring your money is protected and being handled as directed rests on your shoulders.
Keisha Bailey is a seasoned wealth coach, who teaches people how to generate passive income, achieve financial freedom, and create wealth through investment. Keisha works with investors to create highly profitable portfolios so they can build wealth faster. For those seeking to enhance their financial literacy, Bailey can be contacted at [email protected].