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Aside from basic credentials, the thing that separates passable financial advisors from the best financial advisors in the world is a good financial advisor/client relationship. In 2015, the Bureau of Labor reported that there were roughly 197,580 financial advisors employed in the United States. Naturally, not all financial advisors bring the same level of skill, dependability, and trustworthiness to the table.
A good financial advisor/client relationship is just as important, if not even more important than the financial advisor’s qualifications. The following tips can be invaluable for fostering a stronger connection between financial advisor and client in the long run.
1. Protecting the Client
It’s one thing for a financial advisor to simply deliver what the client expects, but the truly valuable financial advisor will always make a point to protect their clients from the unexpected risks as well. While there may always be variables that are simply out of any individual’s control, a truly trustworthy financial advisor will not hesitate to act upon their expectations of the unexpected.
Even if there is never a serious emergency that necessitates it, clients will genuinely appreciate a financial advisor who goes out of their way to plan for any potential business disruption that may necessitate a backup plan in the future.
2.Transparency and Appropriate Prioritization
While there are many financial advisors who have a strong sense of integrity, there are also financial advisors with a bad habit of using insubstantial busywork to give their clients the illusion of productivity.
If the advisor is completely open about what their immediate priorities are, a good financial advisor/client relationship can be developed much more easily. Top financial advisors will not consume their clients’ valuable time by having them pay for unnecessary advice.
3. Sharing Personal Details
The most organic kind of trust can be developed between client and advisor when there’s a reasonable amount of personal information willingly shared between the two. Sharing personal information (with moderation) can be a valuable way to help develop a stronger sense of trust and kinship between the client and advisor that precedes the professional arrangement.
The personal details that are share don’t need to amount to an entire life story; just a few fun personal facts about hobbies and interests can go a long way towards fortifying the strength of the rapport.
4. Substantial Communication
A good financial advisor/client relationship will be distinguished by high-quality communication, not just an objective exchange of words. Any financial advisor can rattle off numbers to their client from a spreadsheet, but a savvy professional who is invested in their client will always make a point to foster connections in more intimate ways.
A holiday card or birthday card can be surprisingly useful for making clients feel much closer to their financial advisors than they may have initially expected, which can greatly lessen the tension experienced during more serious and formal discussions.
5. Identifying Areas for Improvement
Fostering positive connections with clients is a skill that can be honed and the most successful financial advisors are always working on improving in this area. A financial advisor can constantly improve their ability to foster strong rapport by taking note of their interactions and spotting what does and doesn’t work. Rather than focusing entirely on their own credentials and services, financial advisors should always be heavily invested in learning about how to better foster a good financial advisor/client relationship.
All of these tips can help to foster a strong financial advisor/client relationship and can lead to a successful future for all parties involved.
Related Resource: Top 10 Best Online Master’s in Finance Degree Programs
