#1: A Clear Understanding of What the Advice is Costing You
#2: Enough Understandable Information to Answer Questions
#3: Strategies Beyond Investment Selection
#4: Specific Strategies For Your Phase of Life
Today we cover #5:
#5 – Full Confidence in Your Approach and Your Adviser
Many factors determine how much people trust each other. In the case of a relationship with a financial professional, more objective factors could include the advisers’ years of experience, credentials (like the Certified Financial Planner™ designation), and whether they respond quickly when you need their help. It could also be important to you that they specialize on the problems you face and work with other families similar to yours.
Less concrete factors could often come into play when evaluating the relationship. Ask yourself:
- If I knew I would pass away tomorrow, would I feel at peace with my adviser acting as a “financial quarterback” for my family during such an emotionally trying time?
- Do I have conversations with my adviser about my vision for the future and my concerns, or do we stick to the size of my investment accounts and what to buy next?
- When faced with a financial decision, do I feel supported throughout the process or do I feel pressured with “fear and greed” techniques?
- Do I get the same amount of attention now as I did when I was brought on as a client? Do I feel they are too busy with other clients now?
So what should you do now?
- Evaluate how you feel about the advice you get and where you get it.
- If you do not feel that you truly trust the advice or the source of the advice, evaluate alternatives.
- Make sure that inertia is not the only reason you keep things the same.
So there you have it…that’s the 5 Things I see problems with in many advisory relationships. I hope this has given you some good “food for thought” and some ways to evaluate any relationship you have or will have with a financial adviser.
Let me know if you have any questions relating to these or any other financial matters!
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