Your choice of a financial advisor ranks high upon the list of critical life decisions.  Selection of educational institutions, career, where to live, and family create lifelong consequences.  Choosing a financial advisor often determines what happens to the financial results of those consequences, all the way from financial independence to financial ruin.  Developing a relationship with a financial advisor requires due diligence and review; the advisor that is right for you today may not be the advisor you need in the future.  Consider the following keys to selecting and continuing a relationship with a financial advisor.

Choose An Advisor Whose Practice Is Client-Focused

Advisors who build a business – and it is important to remember that it is their business -  focus on their clients needs; your dreams, goals and objectives.  First, they need to focus on you.  Almost any advisor will spend some time early in an initial interview discussing his or her credentials, (as well they should) but the main focus of every meeting should be the advisor discussing your objectives, your resources, and your outcomes.  Eighty to ninety percent of an initial interview should be devoted to the advisor getting to know your goals and current situation. In addition, any meeting should lead off with a discussion of your objectives, and whether those objectives have changed in any way.

Everyone needs an advisor that is a general practitioner that is willing to use outside resources to help you realize your goals.  However, look deeply at an advisor that attempts to manage client relationships and manage money.  Money management demands an amazing amount of time, education, and expertise.  Rare is the advisor that can do both.  Most advisors are not trained in portfolio management, so look for advisors that know their limitations.  If an advisor states that they are an “investment manager” or “wealth manager” ask for their long term results – in writing.

Look for advisors that use a variety of financial instruments and devices to help clients reach their objectives.  Advisors that focus on one product as a solution to all problems should be avoided, as should advisors that sell primarily proprietary products.  If an advisor with The ABC group offers ABC insurance, ABC mutual funds or separately managed accounts, and ABC annuities – you get the idea – beware.  Does this advisor represent you or ABC?  Also seek advisors who discuss fees without your having to ask.

Choose An Advisor Who Focuses on Your Goals Instead of Products

Any time an advisor makes a recommendation for change, the conversation should begin with a paraphrase of your objectives.  Only after you reaffirm your goals should the advisor discuss the details of changes they propose. If an advisor’s first words focus on a new financial product or service, bring it to their attention, make the advisor tell you why the old solution is broken, and why they changed their opinion of their prior recommendation.

Earlier it was suggested you look for advisors that have broad product offerings.  On the other hand, look for advisors that can tell you specifically what they provide in the way of service.  Avoid advisors that state they specialize in a large list of services.  A brochure that says, “We offer stocks and bonds, mutual funds, annuities, life insurance, long term care, investment advisory services, tax planning, options, retirement planning…” often reveals an advisor who only wants to sell something – anything – to anyone who will buy it from them.

Choose An Advisor Who Offers Exceptional Service

Ask your prospective advisor, “What can I expect from you in the way of service?”  Every client deserves exceptional service.  You should always expect the following at at absolute minimum, regardless of the size of your account:

• Advice based on a comprehensive discussion of your objectives
• Prompt execution of all trades, orders, documents, returns, and applications
• Prompt return (twelve to twenty-four hours; same day for urgent situations) of phone calls and written correspondence
• An annual review face to face review

Instead of telling the advisor what you expect, ask for his/her service proposition, and see if it matches up with your expectations. You want an advisor that regularly communicates with you, as opposed to someone who only calls when they want you to make a buying decision. You should have reasonable service expectations, but if you don’t feel the advisor is as interested in you after you become a client as they were before you became a client, express your feelings and if necessary, change advisors.

Select an advisor that you genuinely like and respect.  While liking an advisor is not a good reason to entrust them with your financial affairs, you want to enjoy the meetings you have with this person who helps guide your financial future.

Beginning or continuing a client-advisor relationship requires homework in the way of research and referral, and an approach based on trust and teamwork.  Do not take this lightly; your future could depend on your decision.

Monday marks the beginning of the end – of the last week of the year.  Financial advisors often complain that nobody wants to do business during the Holiday Season.  Nothing could be further from the truth.  A host of opportunities exist with our clients, including:

• Year-end Portfolio Reviews
• Gift Purchases of Investments and Insurance Products (Hint: Investments are on sale right now!)
• Tax Loss Selling – and Repositioning of Those Assets
• Qualified Plan Sales and Transfers

In addition, make some investments of your own during the next month.  Invest in your best relationships.  Spend time with those individuals and businesses clients that are your best clients and prospects.  Get to know them better.  Make certain you care about them, and just not their business.  In addition, take some time to invest in yourself; hone your sales skills.  Tighten up and refocus your marketing plan for the coming year.  Look for opportunities within your business for client development and improvement of your profitability.  Don’t forget to take time with yourself and your family – the most important investment you make.

Sometimes we earn our money – and sometimes we get paid.  During the next thirty days, earn it.  Consider these ideas to help make next year your best ever.

Good selling!

Yesterday I traveled to Sioux City, IA for a meeting at Security National Bank.  The heart of a bank is service, and SNB states that “Since being founded in 1884…the strength of the bank was in their courteous, service oriented employees.” It is one thing to say – and an entirely different proposition to practice.

I arrived to meet with the Bank’s Trust Officers for a three hour meeting. Parking was in short supply and it was raining, so I parked across the street from SNB.  When I was greeted by Kerry, the receptionist on the sixth floor, I asked her about the best place to park.  What happened next was incredible.  She told me she would take of the parking – by running out and plugging the meter for me!  I protested, as I was a little early for the meeting and would be happy to move the car, but she cheerfully and professionally insisted she would be happy take care of my car.

Many financial institutions have become commoditized, but not SNB.  Do you and your team go to this level to provide exceptional service?  Choose to provide exceptional service, and your business will flourish.

Good selling!

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