Selecting a financial advisor who suits you is not always easy.  We are part of an industry that is dominated by men, speaks its own language, uses acronyms in what seems to be every other sentence, and is opaque to outsiders.  For women it can be especially daunting to navigate; our society does not encourage women to get involved in the investing world. 

When selecting the ideal financial advisor, keep in mind you are the client.  That means you are in charge, it is your money on the table.  You have carte blanche when it comes to asking questions. It is always good to ask for a more complete explanation or clarification if you feel uncertain or troubled.  You deserve, and should expect, the level of service promised by your advisor during your initial interviews.  If that is not what you are experiencing, it is your responsibility to bring it to the attention of your advisor.

Relationships go both ways.  From the Oxford Dictionary, “relationships are the ways in which two or more people or groups regard and behave toward each other.”   Setting the terms and agreeing to them at the outset is important.  Just like the other relationships in your life, effective communication helps both parties develop a relationship.  And, if you discuss your issues and concerns with your advisor and they don’t adjust to meet your expectations, it may no longer be a good fit.

Explicit & Implicit Agreements

The advisor is going to have you sign an agreement stating the financial terms of your relationship, the account structure, location of the assets, etc. 

Where the rubber sometimes “leaves” the road is in the qualitative/emotional/fit of the relationship.  Is the advisor empathetic to your situation?  Can they relate to your circumstances, responsibilities, and experiences?  Emotional intelligence? Know when to be quiet, offer a shoulder or provide advice?  In addition to financial expertise, advisers can provide clients with additional support through life’s transitions, including referring you to subject matter experts in estate and tax planning. 

Our suggestions for anyone desiring a positive advisor relationship include: 

1. Be open about your wants, needs, goals and expectations.  Share your fears and concerns as well as any unsatisfactory experiences with previous advisors. When circumstances change, communicate that too. 

2.  Be responsive. Communicate regularly. Complete paperwork in a timely fashion.   As with any relationship the outcome is often determined by the quality of the communication between both parties. 

3. Ask questions. They do not always need to be financially oriented.  Chances are other clients have experienced similar situations; how did they navigate those?  Ask for clarification if you hear unfamiliar language, unknown acronyms, and are not sure about portfolio performance.  

4. Hold your advisor accountable.  Go back and review your communication about goals and expectations.  How are they doing?  What should they do better?  Are your expectations reasonable or unreasonable? 

5. Most importantly, tell them how you feel when things are going well, when you are not satisfied and why.  Most of us try very hard to provide our clients with good advice.  Occasionally there are miscommunications and mistakes.  We want to know about these things ASAP. 

If you have suggestions, please let us know.  We want to exceed our clients’ expectations!   

Mosaic FI, LLC is a State of Illinois registered investment adviser. The opinions expressed herein are those of the firm and are subject to change without notice due to changes in the market or economic conditions and may not necessarily come to pass. Any opinions, projections, or forward-looking statements expressed herein are solely those of Jenifer Aronson and Leslie Meisner, may differ from the views or opinions expressed by other areas of the firm, and are only for general informational purposes July 11, 2024.