How to Evaluate Your Financial Advisor
Here’s a list of 10 important questions you should consider when evaluating your current financial advisor:
| 1 Engagement – How often does my advisor reach out to me with updates and guidance? |
2 Understanding – Does my advisor have a comprehensive understanding of my family’s financial and personal life goals? |
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| 3 Anticipation – Does my advisor help me plan for life’s potential “what ifs” and changes in circumstances? |
4 Trust – Do I trust my advisor to help me manage my finances with transparency and honesty? |
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| 5 Communication – Does my advisor meet with me at least twice a year to quarterly? |
6 Education – Has my advisor provided me with the education and tools I need to understand my financial situation and decisions? |
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| 7 Empathy – Is my advisor empathetic to my personal situation, and does he or she understand that a significant part of the advisor role is emotional support? |
8 Performance – How has my advisor performed in terms of pursuing my financial goals and adapting strategies to market changes? |
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| 9 Gender Perspective – If applicable, do I feel that my gender has been a non-issue with my advisor, ensuring that I am valued and my input is taken seriously? |
10 Satisfaction – Am I truly satisfied with my advisor’s services and believe that they add substantial value as I pursue my financial goals? |
Reflecting on these questions can help you gauge the effectiveness of your current financial advisor and determine whether they align with your expectations and needs.
If you have answered “no” to more than three of these questions, you may want to meet with a new financial advisor to review your portfolio, as well as your financial goals.