It may not need to be a long term relationship, but often the products and tools you select may require a long term commitment to see results you hope for or the product itself may restrict access to your funds for a time.
In this digital age, there is a movement from the traditional relationship driven advisor roles. "My advisor may not be the best in all areas, but I know and trust them, so I am fearful to entertain other influencers" is changing to "I want to be sure my Solution Strategy fits my needs that I am aware of AND the needs that I wouldn’t even know to ask about." As you go through these seven questions, you can determine if you are talking to the right person.
Find Out If You Have a Good Financial Advisor by Asking All These Questions
- Fiduciary - Give me a few examples of why being fiduciary matters, and how that fits with your practice.
- Specific Expertise - If you had to summarize your area of expertise in the vast world of financial advisors, how would you describe what you are best at in the field?
- Unique - What is your method for discovering and understanding how my situation is similar to unique from others you serve?
- Investment Philosophy - All professionals have tendencies to use specific investment strategies. In general, what do you find has worked well over the years? And Why?
- Passion - What about the financial services business caused you to enter as a profession? How does it fit your personality?
- Education - What training and education qualify you to be an authority?
- Fees - I know there are obvious and not so apparent fees with any investment available. Can you give me a few examples of those with a few of the strategies you have implemented?
As you hopefully can see, asking these questions doesn’t require significant financial knowledge. However, his / her verbal and nonverbal response will tell you a lot about who you are dealing with and if you should proceed to a financial interview.
Before You Commit to an Advisor, Make Sure You Know
- What’s in it for you?
- What’s in it for them?
- How can the Solution Strategy be adapted as needed?
When used appropriately, we have seen this Report Card help to significantly aid in preparing to Retire Happily Ever After