The decision to work with a financial advisor is an important one. Whether your situation is relatively simple or more complex, in the world of finance, navigating the multitude of investment options, tax regulations, and financial planning strategies can be overwhelming. Working with an advisor can provide invaluable guidance and play a key role in your financial future.
Advisors come in many forms, bank-owned investment dealers, bank-employee advisors, robo-advisors, private investment dealers, mutual Fund dealers, insurance or investment advisors, etc. While all have their respective roles and varying licenses and training, in my opinion, a well-trained “generalist advisor” can give you and your family important guidance in most situations.
The following list is some of the points I think a good advisor/client relationship should include:
1. A commitment by the advisor to put your interests first.
2. Full disclosure by the client of all relevant information to the advisor to structure an objective plan.
3. A requirement by the advisor to identify and itemize the risks and opportunities presented by the financial plan.
4. A commitment by the advisor to work alongside the client's legal and accounting advisors where appropriate.
5. The advisor should engage in continuing education and carry an appropriate level of Errors & Omissions coverage.
6. The advisor is to provide a step-by-step guide to address any shortfalls or potential risks in the client’s current situation given the client’s objectives.
7. On agreement to proceed with the financial plan the advisor will document all steps and assist with implementation.
8. The advisor and client should agree to review the progress of the plan on an annual basis and make any adjustments necessary to keep the plan on track. The advisor is to provide easily understandable summaries of plan values and portfolio returns for insertion into the client's workbook.
What we have learned to date has come courtesy of our many and varied clients and their family and business situations. Our processes have developed over the years in trying to find the best way to keep our clients informed and on track.
We greatly appreciate the trust and loyalty of the people that we serve and hope to continue doing so for many years into the future. Have a great summer and enjoy your family and the many benefits that we take for granted as Canadians.
Don