There are plenty of articles or guides out there to help you when you are looking for an advisor. I even have my own here. Rarely do we see articles discussing how to measure your current advisor. Mainly, this is because the advisor doesn’t want you to use it against them. Because I have faith in my abilities as a planner, I thought it would be wise to provide the world with a list of things to consider when evaluating your current advisor to make sure they’re doing right by you.

I work with many millennial clients who turn out to be a discerning demographic. There is an endless universe of information at our fingertips that allow us to perform exhaustive due diligence for any major decision we need to make. Trust is a major factor when deciding to embark on a professional relationship but there should be an ongoing process to maintain that trust throughout the relationship. Fortunately, when it comes to financial advisors, there is plenty of competition to help you benchmark your advisor against the pack. Here are a few factors to add to a report card for your advisor or planner.

Service model

I always say, the average person has at least one life altering event every 6 months of their lives. A good planner should know this and constantly be checking in to see how your plan could be affected. Letting even minor events go by, unexplored, could drastically impact the outcome of your financial life. You should be communicating with your planner at least twice a year. There is no reason, with how small the world is becoming, that your advisor can’t be there within 24 hours to provide excellent service.

Fees

The days of commissions should be in the past. I would even say any advisor charging more that 1% is excessive for the average client. Experienced planners know that after a certain amount of assets under management, that the client will pay, that there is not much more value being added. If your adviser is charging high percentage fees, commissions, or a combination of planning fees and assets under management, then you are most likely wasting money. An example of good fees would be a flat annual amount or a percentage of assets under management that includes comprehensive financial planning. Otherwise, your advisor is just placing a few trades a quarter to justify their fees. Believe me, I still see it all the time.

Performance

Any advisor who tells you they know what’s going to happen next with the financial markets is a salesperson. Morningstar creates a report that explains how the top investing minds in the world still can’t beat passive investing. Only 40% beat passive investing to be exact. Judging your advisor based on performance is not always a great indicator of your advisor’s skill. A good measure would be if you advisor had a plan for volatility such as we are seeing today. A good planner would have discussions about rainy days and how you would handle them in the moment. They do not call you when the skies are falling to contain your panic. If your account balance dropped by 20% then it is because you decided that risk was appropriate for your goals timeline, and you can recover with the market. If they planned ahead, then they are performing the way they should.

Competency

I can’t tell how many times a client has come to me with some obscure question about finance that I didn’t know how to answer. What was important in that moment, was that I didn’t make anything up. I told them I would get back to them with an answer and provide professional guidance when I felt comfortable with the topic. You can’t expect your advisor to be an encyclopedia. That is a recipe for terrible service. Your planner should have a well-rounded education in finance but most importantly, have the ability to get you the right answers within a reasonable amount of time. You aren’t just paying your advisor for quick answers and plans. You are paying for their experience, education, and research abilities which they have refined over their years in the industry and school.

Planning and Communication

I always say the best plan is one that my clients will follow. The plan may not work out statistically perfect on a calculator but if it gets the client motivated to move in the right direction, then it is the right plan. There is a lot of financial jargon that people can’t and/or don’t want to understand. If you don’t understand what your advisor is saying because they can’t clearly communicate the steps necessary to execute the plan, you may need to look for someone who matches your learning style better. There is no need for us planners to confuse you to keep you in our book of business. I’d rather see you stay because you see your own success from our work together.

Legal

A simple way to learn a lot about your advisor’s disciplinary history is by checking the websites of regulatory websites. Check out this blog post to learn where to look.

Motivation

Why is your advisor doing this work? When they call, do you feel like they’re pushing you to use a particular product? I’m in the business because I find it is the best way for me to make an impact on the lives around me and provide for my family. If you feel like something is off with the relationship, start with these questions.

Financial advising and planning are relationship-based professions. If you don’t feel the connection with the advisor, then you will not be motivated to work alongside them. There are many good ways to judge your advisor, but these should be a good starting point.

Email me IF you want to discuss your current advisor. We can review these factors and see if they are still the right fit for you.

Fiduciary Mission

At Integritas Financial, we are committed to providing fee-only, fiduciary financial planning services that are tailored to the unique needs of young professionals, particularly millennials. Our experienced planners work with you to develop customized financial plans that address key areas such as estate planning, trusts and wills, retirement, workplace benefits, education funding, student debt, and buying a house.

We believe in transparent, client-focused service that puts your financial goals at the center of everything we do. As a fiduciary firm, we are dedicated to acting in your best interests, and we never sell products that charge commissions to clients.

Our goal is to help you achieve a stable and prosperous financial future by providing comprehensive financial planning services that are tailored to your individual needs. Whether you're just starting out in your career or you're already well-established, we can help you navigate the complexities of financial planning and create a roadmap for success.

Ryan@if-money.com