Making the Right Decision:
“How to Hire Financial Help”
When you ask yourself, “What do I want an advisor to do for me?” your answer will depend not only on the advisor’s service and performance, but also upon your expectations. Success comes when expectations and results coincide. Even so, expectations vary; some are rational and clear, some subjective and vague. However competent an advisor might be, reaching your goals will depend in large part upon the clarity of your expectations and upon the working relationship between you and the advisor. In this partnership, the advisor is entitled to know you well and, in order for that to happen, you must know yourself and be honest about what you know. Accurate self-assessment can be elusive; when asked what they want to accomplish over time, people often answer in vague terms. Although hard to do, one of the most responsible steps toward financial security is to address one’s own shortcomings and to pursue assistance in those areas. The maxim “Know Thyself” can be a tremendous boon to the successful selection of and relationship with an advisor.
As a prospective client, you are entitled to pursue whatever you want to know about an advisor, to “worry” and “sweat the small stuff.” It’s your money. As you interview, assess the advisor’s professional accomplishments, credentials, and integrity. Evaluate client services. Understand whether their investment philosophy is consistent with your view of the world. As accurately as you can, develop a sense of the value of their work for you, and listen to your “gut feeling” about whether you would benefit by working together. Ask for references.
A word of advice: don’t hire an investment advisor to “beat the market.” One’s goals for financial security should be to live one’s life comfortably and never run out of money. Most of the rest is noise. Of course, investment performance is important, but a claim of outperforming a market benchmark should be considered noise. When selecting an advisor, focus on how s/he relates to your long term goals and whether s/he clearly explains a philosophy and discipline with which you can identify and work.