A good financial advisor should be one of the most helpful and influential people in your life. It makes sense. Money is the tool we use to make our way through this world. A good financial advisor should help us put our money to work in the most effective way possible. But how do you know if your advisor is best for you?
Financial life planning pioneer Mitch Anthony believes that a good financial planner should deliver in 6 key ways. I couldn’t agree more. Mitch’s six core offerings are: Organization, Accountability, Objectivity, Proactivity, Education, and Partnership.
- Organization – A good financial planner should help you organize all of the disparate parts of your financial life. Today’s technology allows both you and your advisor to see your financial life in one place with account aggregation software. With this software you can also create budgets for your living expenses and store all of your important financial documents in one place for safekeeping.
- Accountability – The advisor should hold you accountable to your goals and the tasks you plan to implement. Additionally, they should help you prioritize your goals from most critical to least and assist you through the process.
- Objectivity – They should help you avoid making emotionally driven decisions by providing a different perspective. We all have emotional biases that affect our financial decisions. And it makes sense — our relationship with money is very personal. A good advisor will help you make informed decisions even when emotions such as greed or fear are driving you.
- Proactivity – They should reach out to you to make sure that you are on track with your goals, help you anticipate life transitions, and help you plan for life’s possibilities. Being proactive is what separates the good advisor from the great advisor. A great advisor will anticipate your needs and bring ideas to your attention before you can.
- Education – They will take the time to educate their clients about the decisions they face rather than just telling them the best course of action. You deserve to understand the choices that you are making. They are some of the most important choices you will make in your life!
- Partnership – They will work in collaboration with you rather than just working for you. A good financial advisor has long-term relationships with their clients, not just meetings. As I mentioned at the beginning of this article, your advisor will more than likely be one of the most influential people in your life. Make sure that you are working with someone you are comfortable with so you don’t feel like you have to hold back.
I hope that your advisor is checking all of the boxes in the list above. If not, it may be time to look for help elsewhere. If you are looking for an advisor, XY Planning Network’s Find an Advisor or CFP’s Let’s Make a Plan page are two great places to start. You may also be interested in finding out how to work with me.