Clients do not all value the same attributes in a Financial Advisor. Realistically, not every competent Financial Advisor is a good fit for every client. Morningstar's Investor Success Project realizes this fairly universal situation.
What are the top 3 attributes you are looking for in a Financial Advisor
Write them down in order of importance.
Most important attribute:
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Second most important attribute:
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Third most important attribute:
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Take a look at the master list of common attributes that are discussed among the advice industry.
Which of these attributes stand out to you?
Check mark next to the attributes that are most important to you.
Additional insights can be gathered from what attributes you don’t value.
Cross out any attributes that you’re not looking for in a financial advisor.
Consider your initial list and the attributes you marked.
Have your top choices changed?
What are they now?
Write them down.
Master List of Attributes Clients Might Value in a Financial Advisor
Check mark next to those attributes. (Check five at most)
- Has a good reputation and positive reviews
- Is knowledgeable on tax consequences of investing
- Can help me maximize my returns
- Is approachable and easy to talk to
- Helps me reach my financial goals
- Is easy to get a hold of
- Has a clear fee structure so I know what I’m paying for
- Understands me and my unique needs
- Uses up-to-date technology
- Acts as a coach/mentor to keep me on track
- Helps me stay in control of my emotions
- Presents themselves in a professional manner
- Keeps my interests in focus with unbiased advice
- Communicates and explains financial concepts well
- Has the relevant skills and knowledge
It’s also useful to know what you don’t value. Cross out attributes you’re not looking for in a financial advisor.
1 Has a good reputation and positive reviews
2 Is knowledgeable on tax consequences of investing
3 Can help me maximize my returns
4 Is approachable and easy to talk to
5 Helps me reach my financial goals
6 Is easy to get a hold of
7 Has a clear fee structure so I know what I’m paying for
8 Understands me and my unique needs
9 Uses up-to-date technology
10 Acts as a coach/mentor to keep me on track
11 Helps me stay in control of my emotions
12 Presents themselves in a professional manner
13 Keeps my interests in focus with unbiased advice
14 Communicates and explains financial concepts well
15 Has the relevant skills and knowledge
Look at your initial list and the master list. Consider
the attributes you wrote down and the attributes you checked.
Of these attributes, what are your top three? Write them down in order of importance.
Most important attribute:
_____________________________________________________________________________________________________________________________
Second most important attribute:
_____________________________________________________________________________________________________________________________
Third most important attribute:
_____________________________________________________________________________________________________________________________
If you are currently looking for a (new) advisor, hopefully this exercise was helpful to crystallize more specifically what you are looking for.
If you already have an advisor, perhaps an authentic conversation will improve that relationship.