Expectations - Part 1 - What Should You Expect From Your Financial Advisor?

You should have a clear idea of what you expect from your Financial Advisor. From my experience, clients that are unhappy are usually not sure about exactly they want from their advisor or what to expect. What should you expect from your advisor?

1. Communication in good and bad markets.
2. Availability if you have questions. Give them a reasonable amount of time to call you back.
3. A plan for your investing, not just random "good deals".
4. Regular updates and meetings. Every six months at least. More often for more complicated plans.
5. A Complete review of your financial situation, often.
6. Recommendations for your investments and other areas of your financial life.
7. Explanations of why investments were moved or changed or why recommendations were made until you understand the reasons clearly. Keep asking until it is clear.
8. Commissions and Fees should be fair. Ask for an explanations if something seems odd.

These are a few things to make sure are happening with your current advisor. Discretionary trading is another topic to ask your advisor about. Do they participate in it or do they not? This is when the Advisor can make trades in your account based on what they think is best. Will they call you when they do this to let you know? Do you want them to call you?

If your advisor is not meeting your expectations then call them and ask them about it. Be honest. Schedule a meeting, tell them everything you want and ask if they can do it. Give them a chance and if they still don't meet your expectations then shop around until you find someone that will.

Don't forget that you have responsibilities as a client as well. In the next article we will discuss those responsibilities.