Financial literacy usually turns out to be messages that tell us how percentages work, how to use credit wisely, the meaning of dollar-cost averaging, and so on. Not here. Not today. We’re taking a different tack.
One of the effects of the pandemic has been to stir up a chorus of complaints about the customer service you’re getting (or not getting) at your favorite bank or investment company.
Here’s what’s happening.
· The financial services industry is experiencing dramatic, above-trend business growth. Ironically though, some brick-and-mortar offices are being closed. Yet, in other places, new hires are quickly being added. The service models are being rearranged.
· Working remotely outside of traditional business offices has become widespread. This impacts how customer service reps are trained and how service is delivered. Changes like this are rarely smooth, especially when they’re being accelerated.
· People in general are zoom-fatigued, vax-seeking, and adapting to new layers of stress brought on by pandemic living. This includes the people whose job it is to deliver customer service.
· The financial environment itself is a hot mess of legislative actions, policy shifts, historically high market valuations, and FOMO-induced speculation.
Here's what you can do to make your life easier.
· The key thing: Get online. Establish online credentials wherever you have an account. Make the internet your tool of choice for getting financial things done. Hint: Do this on a tablet, laptop, or device larger than a phone. Phone screens are too small for this kind of work.
Include the banks you use, credit card companies, investment firms, your company’s retirement plan, Social Security, pension plans. Familiarize yourself with each company’s website. Learn how to use their site navigation tools. This is not a temporary solution. We’re not going back to the way it was BC (before Covid). The pandemic is the portal to the future.
If you’re unable or unwilling to do this, have a family member, friend, or one of us help you.
· Write down the user ID’s, passwords, security answers and anything else associated with your online credentials. Store them in a safe place. Don’t worry about them being stolen. Intruders look for cash, jewelry, drugs, and electronics. But do make sure your spouse or other family member can find them!
· If you must call customer service, begin with dialing down your emotions. Think about the purpose of your call. Make a short list of key points you want to make and the results you’d like to see. Have a recent statement handy. Be prepared to say your grandmother's maiden name or the street name where you grew up.
· Unless you’ve purchased a fee-for-service arrangement, know that the people on the other end of the line are unlikely to deliver personal financial planning or advisory guidance. They are not your financial planner.
· Be patient. Be kind.
What we can do.
· Help you set up your online credentials.
· Show how to use website navigation tools.
· Prepare you to talk with financial representatives. In some cases, with your permission, we can be in that conversation on your behalf.
· Engage you in the necessary in-depth discussion about forming and implementing your financial plan.
This is the new financial literacy.
Jim Cosgrove, CFP, Plano, TX jim.cosgrove@verizon.net 972-489-0262
Jim Cosgrove, Partner, San Jose, CA jimcos42@gmail.com 408-674-6315
