It can feel like you’re walking blindfolded through a minefield when you enter the world of financial advice. It’s not always easy to pinpoint the dangers. If you want to protect your investments, it’s important that you understand the grievances made file a complaint against a financial advisor.
Transparency is the number one complaint from clients. Imagine hiring someone who promises you to brighten up the room, but keeps you in the dark about costs and fees. Surprises are never welcome, but they’re even worse when the dollar signs are attached. Hidden charges are often a surprise to clients.
Imagine you were all set to go on a beach vacation, but you ended up in a ski resort instead because no one bothered to check your preferences. When advisors don’t align their strategies to client needs, they leave clients in the cold.
Lack of communication is another major problem for clients. Sending messages into the space and hoping to hear an echo is like sending a message into space. Silence or cryptic answers won’t do. Clients want regular updates on their money.
The apparent lack of expertise or its presence can also cause complaints. It should be reassuring to hand over the financial reins. This is not like entrusting someone with the steering of a ship in stormy waters.
The maze-like complaint process itself is another obstacle. Many people get tangled up in procedural vines that are so thick, they would need a machete just to cut through.
How can you avoid them? Do your research, and I mean dig deep. As if you are vetting babysitters for your firstborn, research potential advisors. Check credentials and read testimonials like they are New York Times reviews. Conduct interviews with the same meticulousness as a journalist.
Consider it like setting the rules for summer camp. There should be no surprises and no hidden costs. Everything should be as transparent as spring water.
Establish communication norms too. Determine how often and in what format you would like to receive updates. This could be via weekly emails or monthly meetings. It should be more clear than the instructions on a bottle of shampoo: lather. rinse. repeat!
Keep in mind that this terrain requires more than passive observation. It also demands active participation. If something seems off, it’s likely that something is rotten somewhere.
We’ll end by saying that finding the best financial advisor doesn’t mean finding someone who just talks the talk. It’s also about finding someone to play the game with you and adhere strictly to the rules you’ve set together.