As a savvy investor, you have probably built a network of trusted advisors. From lawyers to CPAs to financial advisors to estate planners, you and your family count on these professionals for their specific expertise. You trust their judgment and expect them to provide an unbiased recommendation. A true partner reviews your current situation, explains the different options, and eventually makes a recommendation. When done correctly, these individuals provide you with the pros and cons of each fork in the road.
Yet, advice, when followed blindly, can be dangerous. In the investing world, this is particularly true. Understanding yourself, and knowing what it is that you do not know, is the first step toward becoming an educated investor. Feeling empowered to question what you do not understand is the key to unlocking a successful client-advisor relationship. Here are three steps you can take to ensure that you are getting the most value from your financial advisor:
- COMMUNICATION
The foundation to any trusted relationship is communication. Advisors who do not regularly reach out to their clients simply are not doing their job. During meetings, phone calls and other communications with your advisor, you should be briefed on recent investment performance, discuss if and how your needs or goals have changed since your last meeting, and listen to new options that match your situation and risk profile. - INFORMATION
Most financial advisors regularly send economic and financial information to supplement your account statements. Take the time to view these materials. Discuss the information with your family and follow up with your advisor if you have questions or concerns. A good advisor will communicate with everyone involved in a respectful, clear and concise manner. The advisor will not confuse you with jargon; rather, when using technical terms, as much background and explanation as necessary will be provided. - EDUCATION
Many organizations host events to highlight financial and economic matters of importance. These events are often geared to a specific audience; look for opportunities that you find interesting. They offer great chances to learn more about investing and to meet new people.
Aristotle once said, “Education is the best provision for the journey to old age.” Another important provision to take along on the journey is your trusted wealth advisor. Your financial needs change with time. Stay informed, and you will be provisioned for a more comfortable journey.
