When selecting a financial professional, one of the most important aspects is to make sure that their personality, beliefs, and communication style are a good fit. I have spoken with a number of women who tell me they put off working with financial professionals such as advisors, financial planners, accountants, etc. because of the negative emotions they attach to working with a financial professional. One colleague described to me the “shame spiral” she enters when she thinks about calling her accountant.
Consider More than the Resume
There are a lot of articles out there telling you what to look for in a financial planner, but not as many telling you what to avoid. The focus is generally upon qualifications and investment philosophy and less upon relationships and emotions. You can hire the most brilliant planner who provides amazing advice. But, if they make you uncomfortable, or you find the exchanges unpleasant, you will avoid meeting with them.
When I speak of a financial planner making someone uncomfortable, I am not talking about the person feeling physically or sexually threatening – though obviously those are a hard no. I am speaking of the emotional and intellectual discomfort that some people can bring up in us. Someone who causes you to feel angry, ashamed, or fearful is not a good fit to work with.
It is vital to hire a financial professional who has the necessary knowledge and qualifications to help you achieve your goals. If you are seeking details on different types of financial advisors and how to vet them, How to Choose a Financial Advisor by Alana Benson provides some helpful information on finding the right fit. For those seeking an investment advisor, this Bankrate article by James Royal provides a clear list of items to consider. Credentials do matter. Finance is full of rules and regulations and an unqualified provider may cause financial harm. But, there are many qualified individuals out there, so it is important to consider fit in addition to knowledge and skill.
Common Concerns
Many people have fear that financial professionals are unethical. There is a lot of press regarding the “bad apple” financial advisors. It is likely you have heard of Bernie Madoff. There are undoubtedly other advisors who are crooks or scam artists. But this is not the norm. Realistically, I have been working in this field for over 20 years and I am unaware of ever working with anyone who was trying to defraud clients. In fact, all of the advisors I have worked closely with have truly had the best interest of their clients at heart.
In my opinion, the biggest logistical concern in financial planning is advisors who work on commission. Again, I know some wonderful advisors who work on commission. But when your livelihood is dependent upon the financial decisions of another, it can be easy to convince yourself that what is in your best interest is what is in their best interest.
Another concern is that a lot of the larger brokerages have quotas and will encourage their reps to push specific products. This puts the financial representatives in a difficult situation in which they are being told to act in the client’s best interest and also to follow management directives that don’t coincide with the client’s best interest.
The “Right” Relationship is Different for Everyone
It is crucial to note is that all relationships are unique and we are not all looking for the same thing. Some women may be comfortable working only with another woman, while others may feel at ease with financial planners of any gender. There are folks who appreciate a streamlined service and others who value flexibility. Some individuals value very direct communication while others appreciate a bit more finesse. The important thing is to find the professional with whom you connect.
Finances are very personal and it is crucial to find a financial planner with whom you can be at ease. It is okay to be selective.
Considerations
Here are some indicators that the financial professional you are speaking with may not be a good fit:
• You feel like they are condescending or speaking down to you.
• They have a lot to tell you about their services but don’t seem particularly interested in you or your needs.
• They don’t seem to understand your questions nor you their answers. You feel like you are speaking on different wave lengths.
• It seems like you are speaking with a politician or a sales person. They seem to have a few key points they repeat over and over without really addressing your questions or concerns.
• They make recommendations with little to no information about you. All aspects of financial planning (investments, insurance, retirement accounts, taxes, etc.) vary according to an individuals situation. Without asking questions they cannot know what is appropriate for you.
• You are not politically or socially aligned. Money is political. If you are interested in social or environmental causes and the advisor only wants to grow your portfolio or avoid taxes then you may find yourselves clashing.
• You dislike the idea of working with them. Yes, check with your gut! You are likely not overjoyed at the idea of budgeting or taxes. But how do you feel about working with that individual? Do you find yourself putting it off because you don’t want to deal with them? Do you feel tense or guarded?
Finding a Good Fit
The best way to determine if you would be comfortable working with a specific professional is to meet with them. Have a conversation. Ask questions. If you are currently seeking a financial advisor visit my Work With Me page and book a call. As a feminist business owner, one of my tenants is that I never use pushy sales tactics and I only work with individuals when I believe it would be in both of our best interest.
Relationships are all personal and unique, this includes your relationship with your financial professionals. It is important to find professionals with whom you are able to connect. Credentials are, of course, significant when choosing a person to work with. But, it is also helpful to go beyond the resumes to find the financial professional with whom you click so that you will get the most from your work together.