When you are looking to decide on right financial advisor to help you achive your goals, there are some important traits to look for. Because you are entrusting your money with someone, it is a decision that can have a substantial impact on your life,
whether positive or negative. While financial advisors are supposed to solely represent their client's best interests. The natural structure of compensation for these positions can lead to persona
l motivation getting in the way of fiduciary trust. Looking out for these 5 traits when deciding on a financial advisor can help increase your confidence when deciding on the right fit.
1. Empathy
Empathy is a crucial trait to consider when choosing a financial advisor. Often times the financial industry can have stereotypes that have been previously conceived from past irresponsible actions of financial proffesionals.
Since financial advisors are meant to act as fiduciaries and provide consultation advice, having them be empathetic to your needs is vital. Advisor's roles have changed to become more passive and resourceful rather than an advocate for a specific product. When deciding on a financial advisor, you should look for someone who is solely focused on what product/service is the best solution for you. While this may seem obvious, advisors receive commission for products they sell and that can lead to personal incentives over the best interest of the client.
2. Certified/Licensed
When choosing a financial advisor; it is important to ask about any certifications, licenses, or credentials. Financial advisors can have a multitude of different certifications that demonstrate that they have the financial knowledge to provide expertise in the field.
Some certifications or licenses to look for in a financial advisor are the Series 6 or 7, Series 66, CFP (Certified Financial Planner), CPA (Certified Public Accountant), ChFC (Chartered Financial Consultant), or RIA (Registered Investment Advisor). While having a certification/license does not guarantee against malpractice, it provides solidarity to clients knowing that their advisors have substantial preparation in the field.
3. Accessibility
Your financial advisor should never be too busy or unavailable to meet/discuss financial planning with you. Since your financial advisor is responsible for managing your money and/or products that they have facilitated to you, that person should be readily accessible when you are seeking consultation or want to buy/sell a financial asset. Since financial adviors are fiduciaries and meant to act in your best interest, it is important to have them accessible when you need them.
4. Trustworthy
Last but not least, your financial advisor needs to be someone you trust. Since you are providing them access to your money, you need to have someone that you easily communicate with and entrust to be accountable for any financial gain/loss on your behalf. The financial advisor role has dramatically changed from someone who wants to sell products/services to someone who is a friend, consultant, and reliable financial source who you can directly contact and feel comfortable with.
Financial advisory companies have become so closely competetive with products/services that it has put more of an emphasis on picking the right advisor to help you through the financial planning process. By avidly evaluating potential advisors based on the above criteria, it gives you a better chance of making the right decision. At Inbound Financial, our advisors are industry leading experts and mimic these neccessary traits. Book a meeting with one of them today and be one step closer to financial success.