Audition your Financial Advisor – Introduction

05 Mar Audition your Financial Advisor – Introduction

Otto von Bismarck created the first pension—retirement from the army was set at age 65—for the 19^th century, a daunting longevity. Today upon reaching 65, you may need to provide another 20+ years.

The money you worked so hard to earn and save must work harder and last longer.

Now, just as you need medical or legal advice, a good financial Advisor can make a big difference. Your brother-in-law or a close friend always puffs their Advisor—rarely will they show you on paper what s/he delivered. Your bank will sketch out their plans and take your deposits. Now how much does that cost, including all charges and fees (not basis points)? You don’t need a ‘great guy’; you need a professional financial Advisor who can work with you through ages and stages for a long time. How do you decide which Advisor to retain, or fire? Let’s look at some guidelines: Process, Value-added, Trust, References.

Process is the medium for your working relationship with your financial Advisor. What should you expect? Your first candidate-Advisor (see 2 or 3) should start by sending you an outline, well in advance.  What should it look like? Let’s look at two agendas for this first meeting.

Which appointment would you like to attend?

Agenda A is not good enough—it belongs to the Advisor—no need to book another appointment.

Clearly, the Advisor with Agenda B is focused on You, today and tomorrow. At the end of every meeting, you should know the tasks, timing, and topics for the next one. Both you and your Advisor are prepared. This is a work pattern that must be consistent during every stage of the process every year. But having a financial Advisor has other advantages.

Value-added means beyond the planning process, where else can your Advisor be helpful. Here is an opportunity to gain some financial literacy. Regulations usually require that you receive a quarterly update on your investments. Some are easy to read, some not. You likely never need to know what ‘beta’ is, was or will be, but a good Advisor can step through statements with you and explain, without jargon, how you are doing in relation to your goals.

For example, surveys suggest that over 50% of Canadians do not have an up-to-date Will or Powers of Attorney training, and resources to assist you. You will need additional advice and documentation. Your financial Advisor should have a network of lawyers, accountants and specialists that can be helpful. Many Advisors have a broad network that includes all kinds of services from dog walking to counseling.

Joel Rose

With over 35 years of experience, Joel Rose helps families – and their businesses – to prepare for the future. He offers guidance and support to help his clients create estate plans and succession plans that meet the needs of the whole family. Through his extensive professional and personal experience, Joel is known for his compassion and his ability to find a creative solution to meet each family’s needs.