1. Are we working toward common goals?
A healthy relationship with your Financial Advisor should make you feel that your best interests are the top priority, no matter what is happening in the market and no matter the size of your portfolio. Furthermore, both you and your advisor should feel that all concerns are heard and addressed.
2. Are we communicating effectively?
At the start of your relationship, your Financial Advisor should propose a plan for when and how to communicate. Consider whether or not you and your advisor have upheld that agreement — and if it’s still effective.
3. Are we properly responding to my life changes?
It's important that you and your Financial Advisor discuss significant financial events in your life, including job changes, marriages, births, and major purchases. You can help by notifying your advisor of these events as quickly as possible, and your advisor should be available to work with you to provide financial advice related to the impacts those events might present. A good relationship with your Financial Advisor means that your investment plan and goals are kept up to date.
4. Are we sharing information and asking questions?
Your financial consultant should provide you with the relevant information needed to help you feel informed about financial events that pertain to your investments. Stay in contact to ensure that your advisor is current on your objectives and can make changes when necessary.
5. Are we managing risk?
A truly healthy Financial Advisor relationship includes a level of trust and comfort that allows you to be honest about your financial goals and concerns. This in turn allows your advisor to suggest risk-avoiding solutions, particularly those you may not even know existed.