If you’re in the market for a new financial advisor, make an investment in your family’s future by taking your time and finding the best possible fit. A financial advisor should represent a long-term relationship, not a one-time, or limited series of transactions. As with any long-term relationship, trust and good rapport are critical. You really need to like each other! The importance of mutual chemistry shouldn’t be downplayed. Financial matters require sharing your family’s most personal information, the good and the bad. Sharing great chemistry with a financial advisor is subjective, but trust your gut if you find shared values and personal connection.
Conversely, evaluating trust, transparency, and alignment is a task best suited to objective professional standards. All financial advisors are not created equal. There are numerous structures for delivering financial advice, each with varying legal and regulatory requirements to act independently and in your best interest. With such a wide range of structures, standards of care, fees, and disclosures, how should a family objectively assess a potential long-term advisor?
A referral from a friend, family member, or other professional is a good start and may help pass the chemistry hurdle quickly. The next step is to interview potential advisors. To assist in the evaluation of professional standards, we’ve crafted 17 questions along with answers which should indicate not only whether or not an individual advisor must serve your best interest, but also whether or not their affiliated firm is structured to do so as well. There's no such thing as a "unicorn" financial advisor, but finding someone to work creatively on your family's dreams given financial constraints shouldn't be a fantasy. Click to here to view the guide.
Disclosure: This material represents an assessment of the market and economic environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Past performance does not guarantee future results.