Your advisor is your personal contact and captain of your wealth management strategy, but it’s important that he or she is backed by a strong team. That’s why it’s critical to look beyond your individual advisor and learn about the entire firm.
A cohesive team with depth and breadth of knowledge makes your advisor—and their advice—even more valuable. It also helps ensure that you’ll never be left adrift in the case of advisor turnover. Promotions, job offers at different firms and retirement are natural events in an advisor’s career. If the person serving you moves on, you want to be sure that they’ll be replaced with someone you can trust. If you’ve selected a firm carefully, other professionals in the office will already know who you are. They’ll have some knowledge of your family’s situation, and they’ll be prepared to pick up where your advisor left off.
Here are some important qualities to look for in an advisory firm:
A Firm-Wide Fiduciary Commitment
When assessing how a firm approaches its overall responsibilities, considering how seriously it takes its fiduciary duty tells you a lot about their commitment to you. A firm’s fiduciary designation can help give you confidence in their practices, so consider seeking a firm that has earned the CEFEX Seal of Excellence.
A Strong Team
Great advisors don’t work in isolation. They have a team of other experts to tap whenever they need more information on a complex subject. Look for firms embracing a team approach so your advisor can pull in expertise from across the firm.
The CEFEX Seal of Excellence is an accreditation for investment fiduciaries established by the Centre for Fiduciary Excellence. CEFEX certification is a rigorous process that includes regular auditing by a team of expert analysts who ensure a firm adheres to the industry’s best practice standards. The audit involves a voluntary review of client records and processes. When you work with a firm that’s CEFEX certified, you can feel confident about their practices. View Plancorp’s CEFEX Certification.
Here are some of the specialists you’ll want to see in a firm:
It’s also helpful to look for a firm that routinely hires younger advisors, so you know there will be someone to take over your relationship if your advisor retires or gets promoted. If the average age of advisors at the firm skews older, make sure you also know the firm’s succession plan.
How to Ask an Advisor About Their Team
Ask these questions when you interview advisors to learn more about the firm and whether it takes a team approach:
Service & Communication
Many people seek a new advisor when they realize they aren’t getting enough attention from their current one. A good firm will stay in regular contact with you and ensure you get prompt service and answers to your questions. Here’s the type of service and communication you should expect:
How to Ask an Advisor About Service and Communication
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Disclosure:
This material has been prepared for informational purposes only and should not be used as investment, tax, legal or accounting advice. All investing involves risk. Past performance is no guarantee of future results. Diversification does not ensure a profit or guarantee against a loss. You should consult your own tax, legal and accounting advisors.