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Overview of the Key
Topics
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:
Does your advisor provide a prognosis before
they have have made a proper diagnosis or
does he/she delve into your
needs and objectives and look at the “big
picture”? Is your advisor a trustworthy
financial advisor or merely another
financial salesperson?
c)
Compensation: No
compensation model is good or bad in and of
itself. Transparency is the key, regardless of
whether your advisor is paid by commissions,
fees, salary/bonus, or a combination of
these.
The most important criterion is to ensure
that your advisor is honest, ethical, and
has the integrity and the expertise to look
after your 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 your behalf. Advisors
should also be willing and able to work with
your current accountant,
lawyer, and other advisors.
e) Caring: How does your advisor
demonstrate that he/she truly cares? What
does he/she do that makes you a raving
fan? Why did you choose your
advisor and why do you stay with him/her? The #1 reason
clients leave an advisor is the perception
of apathy or indifference, not investment
performance.
Chapter 2: Solving the Trust Dilemma
Your family physician looks after your
medical health. Your financial advisor looks
after your financial health. Your financial
advisor is a key player on your 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: Personal and
Business 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 and Trustworthy Advisor
It’s important for you to do everything you
can to identify, select and evaluate a
competent financial advisor who is right for
your specific needs.
It is your responsibility to learn a little
about the industry. Most importantly, you
should take a careful look at your own
knowledge and expertise and realize what you want to or
need to delegate with respect to your finances.
Chapter 6: Identifying
Long-Term Goals and Objectives
A significant part of your preparation to
find the right advisor is deciding what you want the advisor to do
for you. This decision is based on the
questions of what is important about money
to you and what you want your money to do
for you and your family.
Vague goals will lead to mediocre results.
Your advisor should help you refine your
goals and crystallize your 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.
You must feel comfortable with and trust
your financial advisor. The advisor should
have an investment philosophy that matches
your needs and objectives.
Criteria for selecting an advisor includes:
Is the advisor adding value? Is the system
right for you? 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 you
clarify your goals to attain a thorough
understanding. All investments and
recommendations should be in line with the
your 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. You should
call your 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 your
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 his/her 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 your 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 you increase
your knowledge. They should tell you what they are doing
and why. They won’t keep you 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. |
