Michael J. Evans, The Cogent Advisor, Chicago
A robust advisory team can free you to focus on your own talents and interests. It also brings experience and perspective, so you aren’t making critical financial decisions in a vacuum. Even the most experienced advisor is human, like anyone else. To avoid succumbing to myopic decision-making, advisors and clients should routinely stress-test thought processes, seeking the input of others to objectively validate or refute good or bad ideas. It’s also the sign of a solid team.
That’s not to say an event like the financial crisis of 2008 didn’t cause plenty of personal stress. Anyone who didn’t find the 2008 markets frightening needs to be checked for a pulse. Based on the best available evidence that can be collectively gathered and assessed, it’s easy to reach the conclusion that following long-term plans remain the most likely way for clients to see their way through crisis. These plans help keep emotions in check.
So, how do you identify whether your wealth advisor is a team player? You can ask the question point blank. You also can assess your conversations. In recommending an investment strategy, is your advisor relying on robust evidence based on peer-reviewed, published findings? Or is he or she prognosticating based on an unknowable future? Does he or she have a cohesive network of service providers to address your spectrum of wealth needs (such as estate planning, insurance, tax preparation and business planning), or is investment advice being delivered in a void?
I believe the best team players are those who balance their own, independent thinking with open communication among those who have the acumen to complement, substantiate and sometimes challenge their beliefs. The end result strengthens the relationship between advisors and clients, even when (especially when) times are tough.
The links above will redirect you from the BAM ALLIANCE site to other sites and content not related to the BAM ALLIANCE. The BAM ALLIANCE does not endorse or make any claims about the accuracy or content of the information contained therein. The security and privacy policies on these sites may differ from the BAM ALLIANCE.
The opinions expressed by featured authors are their own and may not accurately reflect those of the BAM ALLIANCE. This article is for general information only and is not intended to serve as specific financial, accounting or tax advice.
© 2013, The BAM ALLIANCE