There are plenty of advisors in the world who do a great job directing their client’s financial lives, keeping client needs at the forefront of their decision-making. Unfortunately, many people have experienced an advisor that was seemingly more out for themselves than their client. We’ll look at five warning signs that you can use to protect yourself from such a financial person.
- A Long Resumé
If you see a long resumé with many short or brief stints at different jobs, this could be a sign of instability in their personal lives or, at the very least, a major question as to why this advisor can’t stay at one place for any extended period of time.
In addition, even if this advisor is putting their client’s needs first, how long would you expect the financial relationship to last after your trust and rapport has been established?
- One-Size-Fits-All Approach
While there are certain products that advisor’s like to use given their investment beliefs, you should at least have some If an advisor recommends the same product to everyone, that could be a sign they are only licensed to work with a few investments.
Hopefully an advisor will either show you multiple options, or ask questions to narrow down and guide you to the most appropriate one.
- Always in Sales Mode
If the only time you ever hear from your advisor is when he or she is trying to sell you something, that’s probably a sign they’re much more interested in a sales career than they are in planning and advising.
Planning for, and maintaining an individual’s financial needs requires far more communication after the initial investment is made.
- Very Little Information Gathering
When you first start working with an advisor, there should be, at some point, a process to gather your financial information so your investments can be tailored to what you need. If you sit down with an advisor who doesn’t get to know what financial goals you have, as well as what you have in place already, then this should be taken as a major warning sign.
- No Communication
There should be ongoing communication to ensure clients are still appropriately invested, discuss any life changes that impacts their finances, and answer any questions or financial concerns they may have.
If you’ve never heard from your advisor beyond your initial investment, you have to ask yourself the question – How do I know they’re staying on top of my needs?
We all know the world is a changing place. That is very true in the financial marketplace and individual needs of clients. Finding a good advisor who is focused on what you need first, as well as maintaining a relationship is vital to your success. At Kemp Harvest, we believe our success is based on doing these things well.
If you’re looking to set up an income plan for your own retirement, or establish a relationship with a financial advisor, we can help. Set up an appointment with one of our advisors today to begin the conversation.
The opinions voiced are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement. To determine which investments may be appropriate for you, consult with your financial professional. Please remember that investment decisions should be based on an individual's goals, time horizon, and tolerance for risk. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against a loss in periods of declining value.