It’s important to choose the right financial advisor to work with. If you can’t get through to the person advising you, you’re not likely to achieve your aims. It’s not merely that certain financial advisors are better than others, although this could also be the case. It’s also a matter of communication.
In order to communicate what you’re looking for, you also need to be clear about it in your mind. Do you want to retire within the next ten years? Do you want to save up enough money to buy a beach house? Or are you just trying to get everything in order so that your finances don’t feel so confused? Everyone has different aims and they can all be achieved by just communicating in the right way with a financial advisor who is there to help you. Here are a few tips on working with a financial advisor:
Clarify Your Goals
As mentioned above, clarity is the first step when it comes to achieving your aims. And when you’re trying to achieve this clarity, you can’t be swayed by what other people tell you. Someone in the same position as you might be aiming to buy a large mansion within the next year or so. However, you may not want a mansion. Instead, you may want to save up enough money to retire.
So you need to think about what is really going to make you happy. Just having more money isn’t enough. You also need to know what you’re going to do with it. Once you have this clarity, you can communicate it to your financial advisor and start on the journey of achieving your goals.
Communicate Your Goals
Sometimes, people know what they’re looking for but they feel embarrassed about communicating it. Someone may have told you that retiring within ten years is just a pipe dream. And still, you keep dreaming about it. If this is what you really want, you need to tell you financial advisor about it.
If you try to tone down what you want and just say that you want to increase your savings, that’s what your financial advisor is going to help you to do. They can’t help you until they know what you want. So don’t hold back, tell them what you’re really thinking, even if it seems like you’re aiming too high.
Listen to Your Financial Advisor
Communication is not a one-way street. You can’t just tell your financial advisor what you’re looking for and expect them to magically make it happen. Once in a while, they may tell you that your goals are unrealistic and that you need to modify them a little.
If a financial advisor tells you this, it’s actually a good sign. It means that they’re not afraid of being honest. They won’t scam you and make you believe that certain aims are achievable when they’re actually not.
Plus, another sign of a good financial advisor is that they may be able to make some changes to your goals and present them to you as achievable. Maybe it’s not possible for you to retire in ten years. But maybe you could do so in fifteen.
Think about what your financial advisor is saying and try to work out a goal that both of you think would be achievable.
Evaluate Your Interaction
A good financial advisor will keep you thinking about things and will challenge you to view things from different perspectives. But they’re never going to put you down or ridicule you in any way. You should feel comfortable talking to your financial advisor but you shouldn’t feel complacent. So it’s a good idea to speak to a few before deciding who you want to work with on a long term basis.
Contact us for more tips on working with a financial advisor.