YOUR MONEY-The high price of ignoring financial advice

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By Beth PinskerNEW YORK, July 25 (Reuters) - People hire financial advisers
with the very obvious goal of getting advice on how to handle
their money. So why do investors often cut advisers out of
consequential decisions?
    Some advisers say their threshold for wanting to know about
a client's out-of-budget expenditure is around $2,000. But
sometimes clients skip picking up the phone and make financial
decisions on their own, even when it is a big one.
    It can happen even with the best clients, who otherwise seem
to be listening to advice. That is what Malik Lee, a certified
financial planner in Kennesaw, Georgia, found when one of his
clients cashed out a retirement account after he stopped
working, thinking it was no big deal. But a move like that can
result in a huge tax bill, and there is often nothing a
financial adviser can do after the fact.
    Another retirement decision that can be tempting to make on
your own is when to take Social Security. If you are already
employing a financial adviser, however, this is one area of
expertise you should tap in to. The adviser has specialized
training and also will likely have access to professional
programs that will run the numbers for you.
    The age at which you claim your benefit can have huge
financial impact on your retirement, because the later you take
it, the larger your benefit, said Edward Vargo, a financial
adviser based in Ohio.
    Waiting until 70 can add as much as $6,000 a year in
benefits, Vargo said.

    Sometimes clients do not talk to their financial advisers
about important decisions because they know they are wrong and
yet they intend to go ahead anyway.
    Therese Nicklas, a financial adviser in the Boston area, has
had some tense meetings with clients who were not only keeping
things from her - but also from each other.
    What can...

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