Why relationships are so important to financial advice

When you are considering investing your money, having a solid relationship with a financial adviser is not only ‘helpful’, it can be fundamentally important as well. Most investors depend on their financial advisers to provide them with information that can be crucial to their success with investing.

Here are some other points that anticipate good financial advisers should typically provide their clients:

Risk reward summary

Financial advisers should tell clients when an investment poses a higher risk than what they are anticipating. For many, low-risk investments are often far more comfortable than higher-risk investments.

Market conditions

Clients need to understand how the market is changing and what impact those changes will have on their current portfolio. Without open lines of communication, they would not have the ability to make portfolio changes.

New opportunities

New investments may come to the attention of an adviser. Investors who have good relationships with their advisers will know what the opportunities are, as well as which ones should be avoided.

Nearly all investors are going to seek out an advisor who shares their interests and their goals. However, without a solid working relationship, both parties will likely be disappointed. Not everyone understands what it means to have a good advisor.

Some of the common themes you, as a client, should look for when hiring an advisor include:

Willingness to communicate

An adviser who is willing to communicate with an investor in both good times and bad is important. It is nice to hear from your adviser when your investments are growing, but you also want to hear from them when things are not going so well. This is the only way to get out of tricky investments.

Understands your goals

Not everyone has the same financial objectives. If your adviser does not take the time to understand your overall investment goals, your risk threshold, and your overall financial status, it is impossible for them to give you good advice.

Customer service

Too often, an adviser recommends investment and once you have “bought in,” they vanish until the time comes to sell that investment. However, when you have a solid relationship with your adviser, they will keep you updated on the status of that investment plus all others in your portfolio.

Understandably, many of us are not comfortable investing funds without the assistance of an adviser. However, the wrong adviser or one who is not willing to work with you before, during, and after a sale will likely disappoint you in the long run. Having a good relationship with your financial adviser involves not just great communication, but also means they understand your goals for the future.

About Mike Coady

Mike Coady is an expat expert based in Dubai and is on hand to help with all of the above and more.

Mike is an award-winning money coach and industry leader in the financial sector.

Qualified to UK Financial Conduct Authority (FCA) standards, a member of the Chartered Insurance Institute, a Founding Fellow of the Institute of Sales Professionals (FF.ISP), and a Fellow of the Institute of Directors (FIoD) and featured as a highly qualified Financial Adviser in Which Financial Adviser.

To learn how to choose a great financial adviser, download our free guide.

Blog published by Mike Coady.

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