When seeking a financial advisor, you are essentially beginning a partnership. Even if you have some experience navigating finances, you are pretty much putting your business and its future in the hands of your new guide—which is why it’s crucial that you partner with an advisory team you trust.
Cultivating trust is one of the many responsibilities of your new advisor and if they fail to grow that connection, it won’t really matter how amazing they are at their job.
Here are a few reasons why trust must be at the top of your requirements list when looking for a financial expert to collaborate with.
Trust Is the Key Ingredient to Financial Advisor-Client Relationships
Financial planning, advice, and developing a solid plan (among many other things) require a set of soft skills that will allow you to get the most out of your financial expert.
Here are some characteristics to look for when assessing whether or not you see the potential for a long-lasting and trust-based partnership.
Sincerity
Trust your gut here, do you feel that the financial advisor truly cares about you? About your business?
Or do you get the feeling of a used car salesman sweet-talking you?
A sincere advisor will always make you feel comfortable, understand your goals, and won’t force things on you.
You Are the Priority
Much like the saying “the customer is always right”, a financial advisor should make you feel like your needs are being put before theirs.
Do you get the impression that your best interest is the priority?
Integrity
You want an advisor who acts with integrity. How can you tell if they really do?
Their history will prove it. For example, many of our clients at Saddock Advisory have been with us for decades; if this doesn’t speak to our character, we aren’t sure what does.
So, What Does Trust Actually Mean?
When it comes to this type of relationship, there are a few different meanings. We believe there should be three components of trust in the advisor-client relationship.
First, functional trust—do you trust in the advisor’s ability? Look at how the advisory team works day-to-day and explore their credibility.
Second, ethical trust—do you believe that the financial team follows a code of conduct? What does their history show?
Finally, emotional trust—this is the aspect of trust that we have focused on in this post and will require you to tap into your sensible side.
Does the advisor make you feel safe?
Do you feel that you are important to them?
Taking time to explore all of these components is crucial to establishing, building, and maintaining trust with your financial advisor.
Four Simple Signs Your Financial Advisor Is A Keeper
With all of this in mind, you may be wondering how you can even begin to identify a trustworthy financial advisor. Really, it isn’t as complicated as it may seem.
Here are a few ways to recognize a good financial advisor.
1. Fees are Transparent
The quickest way to spot an advisor who may have questionable practices: they make it difficult to understand what you’re paying for.
Regardless of the compensation structure in place, a trustworthy advisor will be completely up front and honest with how they are making money. Furthermore, they should be willing to take the time to explain and discuss any questions you may have.
2. Regular Communication
We know that our clients have busy schedules, but we’re willing to maintain open and clear communication in whichever way works for you. Whether you prefer weekly or monthly calls, meetings, email updates, etc. we’ll make sure that the lines of communication are clear.
Trustworthy advisors are proactive in keeping you in the loop.
3. Understands Your Goals
Great financial advisors understand your goals, and remember them. We know investing and financial planning is different for everyone and that’s why we take the time to hammer out your needs and goals. We fine tune our advice to match what you’re looking for.
4. An Educational Resource
Even if you don’t want to be involved at all, except for the occasional portfolio review, an honest advisor will be a true resource for you.
While we may be the experts, we want you to have a clear understanding of what we’re doing and what we want to do. We will never try to sell a service, but rather help you understand the value of different approaches.
Choosing a financial advisor is no easy feat, and we know that it can feel risky, but that’s why we aim to be as open and available as possible. We hope that this post shed some light on an intimidating subject.
If you’re looking for a financial advisor you can trust, we are here to help!
The Saddock Advisory team invites you to get in touch with us so you can learn more about our history, our services, and how we can help you! Fill out our contact form here and we’ll be in touch shortly!