What happens if someone who has trust issues with their advisor decides they need help with their investments?
In some cases, advisors may write to me to give them reassurance that they will be treated appropriately. Here’s the latest information: “Now that we are both retired, managing our finances has become more complex and we need support, but in the end we will be able to share our hard-earned retirement savings with those who are looking for answers such as: “I’m very nervous about entrusting my company and management,” one reader wrote. “Do you have any advice to help me feel comfortable using a financial advisor?”
Here are some tips for finding good advice. Finding an effective and reliable advisor can be a challenge, but expect to be rewarded when you find the right person. I have good advisors. I have met them in person. I interviewed them and quoted them in my column because they are knowledgeable, ethical, and personable.
This reader has consulted several different advisors over the years and has never felt comfortable enough with any of them to part with all of his investments. Now a retiree, she wants to consolidate everything with one girlfriend who will protect the retirement funds they have saved together.
A plan to find the right person: Make a list of potential advisors and interview them to see if they are a good fit. Find an advisor by talking to your friends and family to see if they have one they can recommend.Please also try this directory Information for financial planners, advisors, and coaches compiled by financial blogger John Robertson. Note: Some on this list only do planning, while others offer additional portfolio management services.
Important questions to ask when interviewing a prospective advisor:
- Can you provide the specific services I need, such as strategies and tax and estate planning to turn retirement savings into income?
- What investment products do you use?
- How can you generally structure a portfolio based on my desired level of risk?
- How do I protect my portfolio from stock market corrections, recessions, inflation, and other risks?
- How many customers like me do you have and what services do you offer them?
- Is my portfolio large enough to provide the services I want?
- What fees apply to my situation, both in percentage and dollars?
- What certifications do you have as an advisor and how long have you been in the industry?
A few years ago, I created a checklist to help people assess whether they were getting value from their advisors. This may prompt you to ask a few questions of your future advisor.
There are many reasons why relationships with advisors don’t work out for clients. The truth is, one of them was not putting enough effort into finding the right advisor. Don’t compromise for anyone. Please continue lazily.
