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Make sure your financial advisor stacks up

Most of us need a financial advisor at least now and again to make sure we are controlling our money and not the other way around.
Money

Most of us need a financial advisor at least now and again to make sure we are controlling our money and not the other way around.

But do you get the service (and advice) you should, whether from a full-service financial planning firm or from somebody at your local financial institution?

Advisors tend to put more emphasis on sharing articles or other information relating to investors. Investors would rather stress the “personal” than the “financial” in personal financial planning, as the following list reveals.

Here’s what investors wish their advisors would do more of in order of importance, according to a Natixis survey.

How does your advisor measure up?

  • Provide a clear explanation of fees and other costs associated with the advice and/or the investments.
     
  • Offer investments that reflect personal values.
     
  • Listen.
     
  • Help deal with market volatility.
     
  • Help with tax issues.
     
  • Help discuss financial planning with family members.
     
  • Discuss charitable giving and philanthropic goals.
     
  • Talk about estate planning.

Most investors tend to go along with their advisors’ approaches without saying anything. Yet most advisors would be only too willing to accommodate their clients’ wishes – provided the clients make their wishes known.

Ideally, both you and your advisor(s) should ensure your expectations and the services offered match when you first meet.

In an established relationship, you could present this article (as in, “I found I agree with this list”) to your advisor if he or she doesn’t tick most of the boxes. The Natixis survey also showed the cost of advice tops the list of the most important factors investors consider when choosing an advisor, followed by personal referral from family or friends, then qualifications (education, credentials). Unsurprisingly, the survey showed investors are keen for profits but not always willing to take the risks necessary to have a chance at those gains.

“If forced to choose, 83 per cent would choose safety over performance,” said Advisor.ca’s comment on the survey.

Mike Grenby is a columnist and independent personal financial advisor; he’ll answer questions in this column as space allows but cannot reply personally - email mike.grenby@gmail.com