How I’d Look For a Financial Advisor
When people check with their inner circle looking for a recommendation to a financial advisor, I imagine the tone sounds like someone who needs a good dentist for a root canal. There’s a clear problem that is going to be unpleasant to address, but the consequences of putting it off will be even worse. According to AssetMark, 25% of new clients leave their financial advisor within the first two years. I don’t think anyone finds this process enjoyable, so here are three questions I’d ask to find a financial advisor that I’d expect to be with for more than a few years.
1) What do you think makes your clients stay with you?I think a common mistake that people make when looking for an advisor is to focus only on professional acumen. After 23 years of doing this, I’m beyond convinced that the advisor/client relationships that last the longest contain some level of personal appreciation that goes both ways. These quality relationships will always involve some conversations that get personal, and those conversations just don’t happen with people you don’t like. I think that this question (and the next two) will expedite identifying this likability while testing their professionalism at the same time.
2) If you could have one do-over in your career, what would it be?This one gives the advisor a great chance to reveal something personal about themselves, and if they don’t take it, shouldn’t that tell you something?
3) What’s your personal philosophy on how people should handle their money?Another great chance here for the advisor to be authentic and original. I wish this weren’t so, but I think this is uncommon.
Please pass along any questions of your own that you think would cut down on the number of frogs one would have to kiss before finding their forever advisor. That’s all for today, we’ll see you soon.