When you need help, where’s the first place you turn?
If you’re like me, you probably start with family. The help and advice you receive from family members won’t always immediately solve your problem, but it can serve as a starting point. Where many future retirees go wrong is believing that investment knowledge qualifies someone to serve as their Financial Advisor.
“My cousin invests in stocks.”
Not everyone who drives a car will become a NASCAR driver, and not everyone who invests in stocks will be a suitable fit as your Financial Advisor. While having conversations with family members and friends about investing and retirement planning can be helpful, there’s a limit to the benefit of these conversations. This is because investment knowledge is only a starting point; it’s the most basic requirement of a Financial Advisor.
Each Financial Advisor, myself included, has something, or many things, that differentiate them from other Advisors. What helps them stand out from others is also what will help you determine if they are the right or wrong fit to guide you toward your retirement goals. After all, even the world’s best Financial Advisors aren’t the best Financial Advisors for every potential client.
I believe there are three things every client-advisor relationship needs, including:
- A foundation of trust
- Effective communication
- Shared or similar philosophy
Before settling on a Financial Advisor, ensure you align with them in the three areas listed above. Can you trust them? Are you able to communicate regularly and effectively with them? Do you share a similar investment philosophy? If the answer is no to any of these three questions, search for an Advisor who better aligns with your wants and needs. Putting in this time and effort at the start of your retirement planning will prevent countless mistakes and headaches I’ve later helped clients recover from.
Disclaimer: Content in this material is for general information only and is not intended to provide specific advice or recommendations for any individual. Opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.