• Mike Komara

Why People Love (or Hate) Their Investment Advisor

A good investment advisor can improve an individual's financial position and help them build wealth. Of course, not all investment advisors are worthy of their name. While investment advisors hope all their clients love them, sometimes the opposite is true.

Why People Love Their Investment Advisor

Here are a few reasons people why love their investment advisor.

Their advisor understands their situation.

People love investment advisors who take the time to understand their financial goals and to empathize with what's important to them. Sometimes advisors focus on a particular niche and find clients who share an interest in that niche. This similarity can enable them to build a strong connection with each other. Whether an advisor has a particular niche or not, however, their clients love them when they focus on their needs and not on promoting their own agenda.

Their advisor educates them.

The advisor explains to them about their investment options in a way that they can understand. The advisor doesn't talk down to them or insult their intelligence, but the advisor doesn't use a lot of industry jargon, either. They provide information succinctly and accurately.

Their advisor respects their assets, no matter how small.

Often people don't seek the help of an investment advisor because they think they lack enough money to have one. However, the job of an investment advisor is to help people build their portfolios. People love an investment advisor who clarifies that they will do their best for clients whether they have $250,000 portfolios or millions.

Their advisor solves their problems rather than pitching products.

People don't want a sales pitch. They love an advisor who understands their goals and will help them achieve them. They love when the advisor helps them save for retirement or their child's college without pushing products that the advisor has a particular interest in or referring them to professionals simply because the advisor receives a referral fee.

The advisor keeps in touch.

People love an advisor who cares about them and communicates with them. They love hearing "congratulations" when they have a new baby or earn a job promotion. They love when an advisor acknowledges their birthday and keeps track of how their age and life transitions may affect their savings goals. They also love that their advisor keeps them informed about what's going on in the markets and how that affects their journey toward their financial goals.

Why People Hate Their Investment Advisor

Unfortunately, clients don't universally love their advisors. Here are some reasons why people hate their investment advisors.

The advisor is product-focused.

People want investment advisors who actually advise rather than those who just represent a product and sell it to them. They want people to understand their needs and to recommend investment strategies to them. They hate just being pitched a product without regard to whether that product is relevant or not.

The advisor is poor at answering questions.

Investment advisors should be able to answer the questions their clients ask in a straightforward way that is devoid of jargon. Clients hate their advisors when the answers they receive are irrelevant to their personal situation and aren't understandable. The essence of being able to advise is to be able to answer questions.

The advisor is a poor listener.

If advisers are to recommend strategies that meet the client's financial goals, they need to understand these goals. They can only do so by talking with the client and actually listening to what is said. Clients hate their investment advisors when they feel their needs are being ignored or that the advisor lacks interest in them personally. One of the ways they discern whether the advisor is interested in them and will be successful in managing their portfolio is by how well they listen.

Essentially, whether people love or hate their investment advisors depends upon whether the client senses that the advisor really cares about them or their goals. When an adviser listens to their client, answers their questions well, and communicates with them regularly and on special occasions, the adviser is loved.

At Solas Wealth, we believe you’ll find our approach refreshingly different. It’s collaborative, caring, and perhaps most of all, inspiring. For nearly 30 years, we’ve been lighting the way forward so that our clients can experience the abundant life they envision for themselves and those they love.


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