Your financial advisor is an integral part of the team that helps you manage your wealth and build a sustainable future. Having a good relationship with them is crucial to achieving success in the work you do together. Your relationship with your planner is undoubtedly a two-way street, and you should only hold the highest of standards to your financial advisor, but there are also a few steps you can take to ensure you’re holding up your end of the bargain as well. Here are our five tips for a good relationship with your financial advisor.
1. Share your goals
The first of these tips for a good relationship is probably the most important: share your goals. You certainly have many goals you want to accomplish in your life, from buying a vacation home to reading two books per month. Not all of your goals may involve finances or require any specific planning work, but that doesn’t eliminate the need to share them with your financial advisor. Even your more unique goals deserve a discussion with your financial advisor since they may still be able to find solutions for you. Furthermore, money is but a tool to live the life you want, and financial planning is just as much about envisioning that life as it is figuring out how to get there.
2. Be vulnerable
You may be under the impression that being confident and under control at all times is necessary to portray strength, but putting on a bravado that you feel everything is ok when you are panicking inside will not improve your situation. It could even make it worse. If an investment makes you nervous, or you have a financial concern that has been worrying you, it’s your financial advisor’s job to help you work through it. It’s their job to guide you through your wealth journey and handle any concerns that may arise.
3. Share changes to your employment or income
Of all the tips for a good relationship, this one is often overlooked by clients, but it’s very important to share changes to your employment or income. From major changes, such as losing your job or switching careers, to minor changes, such as an adjustment to your benefits, you want to keep your financial advisor informed of it all. A simple modification to the investment options in your 401(k), for example, could require a rebalance or reallocation. Or, if you leave your profession entirely, you may need to revisit insurance needs or prepare for a different cash flow picture. Regardless of the circumstances, keep your financial advisor informed so they can help you plan and prepare for what’s next.
4. Share changes in your personal life
From significant changes, such as losing your job or switching careers, to minor changes, such as an adjustment to your benefits, you want to keep your financial advisor informed of it all. A simple modification to the investment options in your 401(k), for example, could require a rebalance or reallocation. Alternatively, if you leave your profession entirely, you may need to revisit insurance needs or prepare for a different cash flow picture. Regardless of the circumstances, keep your financial advisor informed so they can help you plan and prepare for what’s next.
5. Inform them of any data or security breaches
The last of these tips for a good relationship with your financial advisor is to inform them of any data or security breaches. If your personal information is compromised, or you suspect some else is using your identity, you should alert your financial advisor immediately, even if it’s as simple as a lost credit card. Your planner will have the ability to place additional restrictions on your account and provide added security to protect your financial information and wealth. Your advisor can also give you advice on how to protect yourself from future breaches.
As you can see, maintaining a good relationship with your financial advisor boils down to being honest and open in your communication and keeping your advisor up to date on changes in your life. The more information and regular updates you can provide them, the better your relationship will be and the more you’ll get out of the work you do together.
If you’re looking for a financial advisory firm that provides personalized, knowledgeable, transparent, and cutting-edge advice, schedule a time to chat with us today. In a world where change is accelerating, and the future is uncertain, we provide a level of simplicity and confidence around your entire financial situation so you can live your best life – this is Life Planning Simplified®.
Forefront Wealth Partners is an independent financial advisory firm that provides creative problem solving to our clients. In a world where change is accelerating and the future uncertain, we provide simplicity and confidence concerning financial, tax, and legal strategies. Our process involves a deep relationship, focusing on meaningful outcomes and dynamic planning.
The information given herein is taken from sources that IFP Advisors, LLC, dba Independent Financial Partners (IFP), IFP Securities LLC, dba Independent Financial Partners (IFP), and its advisors believe to be reliable, but it is not guaranteed by us as to accuracy or completeness. This is for informational purposes only and in no event should be construed as an offer to sell or solicitation of an offer to buy any securities or products. Please consult your tax and/or legal advisor before implementing any tax and/or legal related strategies mentioned in this publication as IFP does not provide tax and/or legal advice. Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation, or needs of individual investors. This report may not be reproduced, distributed, or published by any person for any purpose without IFP’s express prior written consent.
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