A solid relationship with your financial adviser is all about trust and understanding. When you have a good rapport, your adviser grasps your financial goals, your comfort level with risk and your personal situation and can, therefore, tailor their advice to fit specific needs and help you stay on track with your money goals. A one-on-one connection and an adviser who really listens to and understands your goals can be vital to a stress-free retirement.
Subscribe to Kiplinger’s Personal Finance
Be a smarter, better informed investor.Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail. Profit and prosper with the best of expert advice - straight to your e-mail.- Lack of communication
- High fees
- Incompatible trading philosophy
- Poor performance
Signs of a disconnect
Many people feel like they are just another number to their firm. They are ushered in and promised many things and feel excited about what they are being told.But once the money transfers, things change. You call in and need to speak to who you thought was your adviser, and you are shoved off to someone else, or the adviser never calls you back. You are brought in only once a year for a review, with very little interaction at other times.Or maybe you have been with your adviser a long time, but the firm has decided to change philosophies, and it no longer aligns with what you initially agreed upon nor was this change communicated to you. Having good communication and feeling heard and understood in all relationships is key to success.It is inexcusable for advisers to fail to return phone calls, shove clients off to someone else or not know what is going on with your financial health. Just like going to the doctor, if you have no clue what the course of treatment is, how can you get healthy? And if you are given a new doctor every time you go, how you can ever have the confidence that things are being managed properly?
What 'other' fees?
Fees should be expected. Obviously, no one works for free. But most advisers may not be fully transparent with the fees they are charging. Advisers may say they charge 1%, and this may be true for the advisory fee.
However, there are generally other fees that go to the financial institutions or portfolio managers, commissions and transaction fees.Meeting with an independent adviser who can run a fee analysis can help give you confidence knowing that this is not happening to you.Learn to say no
It is the adviser’s job to advise but not to dictate the philosophy. It’s important that your adviser understands your individuality and is willing to create a plan that fits you.This is where I tell people that saying no is super important. I know it is hard to tell others no, and most will just avoid the conflict, but this is not the place to do that. There may be times that advisers push products and services that are more beneficial to them than to you. If you are not confident in what is being presented, say so. And if the adviser continues to push that and not give other options, find someone else.
This is going to be a long-term relationship, and if you don’t feel it’s a two-way relationship, it’s not worth continuing.Red flags on results
Most people understand that in bad markets there is likely to be some loss. But consistent year-over-year losses that you are confused about or that you feel should have been different are huge red flags. If you see markets going up but you are not making money, or if you were promised one thing in a non-market-based product and you are not receiving what you were told, it is time for a second opinion. This is a conversation many try to avoid, but it is an important one to have in order to stay on track throughout retirement.As you can see, even though there are four main reasons people switch, most of the reasons are ultimately related to relationships and communication. Making sure to build that one-on-one personal relationship with your financial adviser is key to good communication, which can lead to better understanding of your overall plan.The ability to access the person handling your funds and truly knowing they understand your goals can leave you feeling much more secure. If you are the only one checking in — meaning that your adviser never calls you to make changes or see how you are feeling about your plan — this is a reason to seek someone who will make that time for you. In my 20 years of working in the financial industry, it is apparent to me that this is the biggest mistake advisers make.Dan Dunkin contributed to this article.
The appearances in Kiplinger were obtained through a PR program. The columnist received assistance from a public relations firm in preparing this piece for submission to 49ermike.com. Kiplinger was not compensated in any way.
Insurance products are offered through the insurance business Agape Wealth, LLC. Agape Wealth, LLC is also an Investment Advisory practice that offers products and services through AE Wealth Management, LLC (AEWM), a Registered Investment Advisor. AEWM does not offer insurance products.
The insurance products offered by Agape Wealth, LLC are not subject to Investment Advisor requirements. Neither the firm nor its agents or representatives may give tax or legal advice. Individuals should consult with a qualified professional for guidance before making any purchasing decisions.
AE Wealth Management LLC provides services without regard to religious affiliation and the views of individual advisors are not necessarily the views of AE Wealth Management. 2271077 – 03/24
Related Content
- Is Your Financial Adviser Doing a Good Job for You?
- Eight Times You Should Contact Your Financial Adviser
- A Virtual Financial Adviser Could Be the Right Fit for You
- Can I Hire a Financial Adviser to Manage My 401(k)?
- Should I Pay a Financial Adviser an Assets Under Management Fee?
Disclaimer
Heidi Ardis is a wealth adviser and the founder and CEO of , which she opened after serving in executive positions in the corporate and independent financial world. Heidi is the author of Simplified Strategies for Retirees: Defend and Distribute your Income and Wealth with Proper Planning. Her commitment to faith and family shines through, and Heidi enjoys helping people preserve and grow tax-efficient retirement income for themselves and their loved ones.
-
Stock Market Today: Stocks Rally After Blowout Jobs Report Stocks soared into the weekend as investors brushed off strong payrolls data and lowered rate-cut expectations.
By Karee Venema Published
-
Solar Eclipse Snacks: 25 Best Deals for Enjoying the Big Day Watch the solar eclipse while feasting on these great deals from Burger King, MoonPie, Applebee's, Krispy Kreme and more.
By Kathryn Pomroy Published
-
Is There a Best Day of the Year to Retire? Taking into consideration the time of the month and the time of the year can make a difference in your retirement income.
By Evan T. Beach, CFP®, AWMA® Published
-
Have You Reached 59½? Time to Rethink Your 401(k) Options A rollover IRA might be in order to help protect your retirement savings from potential (and potentially disastrous) market downturns.
By Chris Ballard Published
-
How Sharing Equity Can Build a More Entrepreneurial Business Businesses that share equity with their valued employees can better motivate and retain top talent while reaping the benefits of an entrepreneurial culture.
By Heather Robertson Fortner Published
-
Do You Know How to Create a Reliable Retirement Paycheck? Here are some do’s and don’ts (plus a never) for when it comes time to create your retirement income plan.
By Thomas Diorio Published
-
Five Estate Planning Things You Need to Do Now For a solid estate plan, you should put powers of attorney in place, designate beneficiaries, tackle tax planning and more.
By Joe F. Schmitz Jr., CFP®, ChFC® Published
-
What to Expect in a Gray Divorce (and Three Steps to Prepare) Legal costs, how assets are divided and other expenses can be eyebrow-raising. Being prepared before you start the process is critical.
By Evan T. Beach, CFP®, AWMA® Published
-
How to Cut Your Taxes as Short-Term Interest Rates Come Down Using after-tax savings to buy an immediate annuity could shift your taxes on income to later years, when you might have expenses that can offset higher taxes.
By Jerry Golden, Investment Adviser Representative Published
-
Six Tasks That Can Help You Feel Better About Your Money Even small and gradual changes can have a big impact on your financial situation and how you feel about it.
By David Kimball Published