Lacy Garcia is Founder & CEO of Willow.
When searching for a financial advisor, you’re not just looking for someone with impressive credentials or a track record of high returns. This is the beginning of a long-term relationship that will help you to shape your financial future, much like a life partner or a best friend. You want to find someone who truly understands you, shares your vision and has your best interests in mind every step of the way.
The right advisor needs to be more than just knowledgeable; they need to connect with you on a personal level. When you find that perfect match, the possibilities of your financial future are endless.
Trust Over Track Record
Trust is the foundation of any successful relationship, and when it comes to your finances, it’s absolutely essential. While past expertise and performance are valuable, these traits are secondary to finding an advisor you can trust. You want to have someone in your corner who is fully committed to your success.
Most investors agree. According to Morningstar’s Voice of the Advisor report, 36% of investors ranked trust as the most important factor when selecting an advisor. This outweighed positive reviews or recommendations from friends and family, which only about 20% of the investors surveyed considered a top priority.
Similarly, 88% of investors surveyed in a recent Wealth Management Pulse Survey from Morgan Stanley emphasized the importance of a trusting relationship with their financial advisor. Trust is the key to unlocking your financial success.
Ask The Right Questions
Building trust may take time, but you can start laying out the groundwork from day one by asking the right questions. Think of this process as going on a first date, but for your finances!
This process gives you the chance to get to know your future advisor, both as a professional and as a person. Here are some questions to consider asking during a first meeting:
• “What is your approach to financial planning for clients with similar goals and aspirations to mine?”
• “Can you tell me about a time you helped a client navigate a difficult financial situation?”
• “What’s your communication style, and how often can we meet to review my plan?”
Lead with open-ended questions and listen to how they respond. Asking the right questions will help you to determine whether an advisor is a match and if you should make things more serious.
Compatibility Matters
Like any great partnership, compatibility with your advisor can significantly impact your success. Some things to consider include:
• Personality type: Finding someone with a compatible personality type to yours can make the process more seamless. For example, an extroverted advisor might fit well with someone who thrives on frequent and collaborative communication.
• Shared hobbies: Finding common ground between you and your advisor can help you to feel more relaxed, open and comfortable. If your advisor enjoys similar activities as you, working together will feel more natural and enjoyable.
• Favorite pets: While it may seem trivial, your advisor’s preference for pets can reflect their personality. For instance, a dog lover might be more outgoing and communicative, while a cat enthusiast might be more reserved and introspective. These traits can influence how well you relate to each other.
Maintaining A Lifelong Relationship
A strong advisor-client relationship goes beyond transactions. You’ll want a partner who will be your rock and help you stay on course, even when the going gets tough. Here are additional tips to ensure the right fit for you:
• Similar values and goals: Just like any great relationship, you want to make sure you and your advisor are on the same page. Whether you are focused on retirement, growing a family or starting a new business venture, your advisor should not only understand your goals but be just as invested in them as you are.
• Crystal clear communication: Good communication is key to any lasting relationship. You should leave every conversation with your advisor feeling confident. Your advisor should always be responsive to your questions and concerns.
• Personal rapport: A relationship with your advisor is not just business; it’s personal. You should feel comfortable being honest about your financial situation, and feel seen, heard and respected by your advisor. Trust your gut. You’ll know when it’s a good fit.
Your Journey To Financial Empowerment Starts Here
Choosing the right financial advisor is more than just hiring someone to help you manage your money or investments; it’s the beginning of a critical partnership to help you achieve your financial and important life goals. You want someone you can trust, who shares your values and you enjoy meeting with.
Look for an advisor who makes you feel at ease and excited for what’s in store for your financial future. Focusing on these traits will help you find an advisor who can guide you through your financial journey, making you feel confident, secure and empowered each step of the way.
Remember, finding “the one” is about forging a partnership that will support your long-term financial health and success. Find someone who inspires you, and let them help you unlock your full potential.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
