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Overview of the Key
Topics
This overview is designed to give you (the
advisor) an understanding of the key ideas
and philosophies presented within the book.
The chapters are written in a way that most
advisors’ business models would probably fit
within the general theme of each chapter.
Important Note: This book is written for your
clients and prospects; i.e. the investor, to
objectively teach how to select and
evaluate an advisor who is “right” for their
specific needs and objectives.. This book
will also help you to become a better
advisor by allowing you to look at yourself
and your practice from your client’s or
prospect’s perspective.
Chapter 1: The Five Continuums
of Trust
The following 5 continuums have
been identified as key areas to selecting
and evaluating high-level advisors:
a) Level of
Education/Experience/Knowledge: Having
experience to apply education and knowledge
is what helps to mold a high-level advisor.
Having wisdom is what differentiates the
good from the best.
b) Type of Advice: Do
you provide a prognosis before you have made
a proper diagnosis or do you delve into your
clients’ needs and objectives and look at
the “big picture”? Are you a financial
advisor or a financial salesperson?
c) Compensation: No
compensation model is good or bad in and of
itself. Transparency is key.
The most important criterion is to ensure
that the advisor is honest, ethical, and has
the integrity and the expertise to look
after the client’s best interests.
d) Capabilities: No
advisor can be all things to all people. A
high-level advisor should have a group of
experts (whether internal or external) that
can be utilized on the client’s behalf.
Advisors should also be willing and able to
work with the client’s current accountant,
lawyer, and other advisors.
e) Caring: How do advisors
demonstrate they care? What
do you do that makes your client a raving
fan? Why did your clients choose you
and why do they stay with you? The #1 reason
clients leave an advisor is the perception
of apathy or indifference, not investment
performance.
Chapter 2: Solving the Trust Dilemma
The family physician looks after the
client’s medical health. The financial
advisor looks after the client’s financial
health. The financial advisor is a key
player on the client’s advisory team of
professionals providing expert counsel and
advise. Establishing a high level of trust
is the #1 reason clients choose and stay
with an advisor.
Chapter 3: Qualities of Good Financial
Advisors
A candid discussion about
finding advisors who truly want to help
their clients identify, define and achieve
their client’s goals and objectives. The
spirit of caring permeates through
everything quality advisors do and defines
who they are as individuals.
Chapter 4: The Importance of
P.R.O.C.E.S.S.
Good advisors have a system for
working with clients, making
recommendations, and making sure that
nothing of importance to the client slips
though the cracks.
One of the major distinctions between
high-level financial advisors and financial
representatives is their strict adherence to
specific disciplines and processes.
Chapter 5: PREPARE: Finding a
Competent & Trustworthy Advisor
It’s important for your client to do
everything they can to identify, select and
evaluate a competent financial advisor who
is right for their specific needs.
It is your client’s responsibility to learn
a little about the industry. Most
importantly, your client should take a
careful look at their own knowledge and
expertise and realize what they want to or
need to delegate with respect to finances.
Chapter 6: Identifying
Long-Term Goals and Objectives
A significant part of your client’s
preparation to find the right advisor is
deciding what they want the advisor to do
for them. This decision is based on the
questions of what is important about money
to them and what they want their money to do
for them and their family.
Vague goals will lead to mediocre results.
The advisor will help refine the client’s
goals and crystallize their thinking.
Chapter 7:
Research and
Review: The First Meeting
The initial meeting is very important. It
allows each party to get to know and assess
each other and determine whether “the right
chemistry” exists between client and advisor.
Your client must feel comfortable with and
trust their financial advisor. The advisor
should have an investment philosophy that
matches the client’s needs/objectives.
Criteria for selecting an advisor includes:
Is the advisor adding value? Is the system
right for the client? Do you think alike?
Does the advisor have the right experience?
Does the advisor ask the right questions?
Sample questions to ask the advisor are
provided..
Chapter 8: OBJECTIVES:
Clarification of Your Goals
The advisor should help clarify
the client’s goals to attain a thorough
understanding. All investments and
recommendations should be in line with the
client’s goals, objectives, and risk
tolerance(s).
Chapter 9: COMMUNICATION: A
Dual Responsibility
Communication is a two-way
street between client and advisor. Advisors
should explain things in clear
understandable language and conduct periodic
follow-up contacts and meetings. Clients
should call their advisor in the case of
changes in personal, financial or
professional circumstances. Both parties
must understand one another and make an
effort to keep each other informed of
changes in circumstances.
Chapter 10: EVALUATE, EXECUTE,
RE-EVALUATE
Nothing remains static. Plans
should be regularly updated. Goals and
objectives should be periodically reviewed
and updated.
One of an advisor’s most difficult jobs is managing investor
expectations—and getting clients to continue
to follow the plan.
Chapter 11: SYSTEMS: Which One
is Right for You?
A system ensures delivery of a
quality experience and advice. What systems
does the advisor have in place? Who are the
team members involved?
This chapter will delve more deeply into the actual
systems high-level advisors have in place,
and focus on whether or not the client’
personality and character attributes are a
good match for
the
advisor,
Chapter 12: SYNCHRONIZED
and
SYNERGETIC Teams
By working with associates who have the
right attitude and the knowledge to
supplement the advisor’s practice, a synergy
occurs in which the whole is definitely
greater than the sum of its parts. A
financial advisor must be able to work
efficiently and harmoniously with team
members in order to provide exemplary
service to clients
Chapter 13: Planning and
Investments
“If you fail to plan, you
plan to fail”. The three components of this
chapter are: 1) general planning strategies,
2) investment strategy tactics and possible
pitfalls, 3) market wisdom and mistakes
to avoid.
Market sophisticates know
that change is the only constant. Therefore,
they have contingency plans, and are
constantly monitoring the situation so that
they can make the appropriate adaptations.
Chapter 14: The Importance of
Advisor Education
A good advisor will continually
enhance their knowledge in areas that are
pertinent to client objectives.
At the
height of his fame, Michaelangelo was quoted
as saying “I am still learning”. This
represents the passion for on-going
professional development shared by top
advisors.
Chapter 15: The Importance of
Client Education
A high-level advisor has two driving
beliefs: “An educated investor is the best
client,” and “An educated client is the best
investor.” Advisors should help clients increase their knowledge. They
will tell their clients what they are doing
and why. They won’t keep their clients in
the dark.
Chapter 16: Summary and Words
of Wisdom
We surveyed some of the industry’s top advisors as to what
important advice they would give to an
investor. Here are seven final comments that
encapsulate some of the primary points made
within the book. The ideas contain a bit of
philosophy, good rules of thumb and a
healthy dose of common sense. |
