Women & Wealth Part 5: Finding an Advisor
Did you know that 70% of women dump their financial advisor within a year of their husband passing (Investment News)? According to The Boston Consulting Group, 73% of women are unhappy with the financial services industry. YIKES! Most recent data from the Department of Labor (2016) shows that 46% of the fulltime workforce in America is female. The proportion of wealth in our country controlled by women is increasing rapidly. All of that data means there are a lot of women out there searching for sound financial advice. If you’re a woman looking for a new financial advisor, here are 5 things that might help.
- Don’t ignore red flags. The red flags are vast and they will be different for everyone. If you get that yucky feeling in your stomach while sitting in an advisor’s office, run. You’re smarter than you think, trust your gut. While I’d like to tell you that everyone in the financial industry is here to help, we know that’s not true. If you don’t feel good about the person you’re working with, unapologetically find someone else.
- Complicated doesn’t always mean better or smarter. I wouldn’t say that retirement planning and investing are simple, they don’t have to be extremely complicated either. Don’t be won over by elaborate and sophisticated. Ed has always said that we “talk at an 8th grade level and repeat ourselves.” If an advisor cannot make your investments at least somewhat understandable to you, they might be overcomplicating the process. You should leave your advisor’s office a little smarter every time. It is in both of your best interest for you to have a basic understand of what you own and why.
- Find someone who wants to know you. Your advisor should be someone who starts with far more questions than answers. Retirement planning is not one size fits all. Your advisor needs to know and understand you in order to help you. They should care about things such as your family structure, your work life, your goals and dreams, your legacy plans. Knowing you is how we do our job best. Which leads us to number four.
- Choose an advisor that you are comfortable being vulnerable with. Money is a vulnerable topic. Unfortunately, that’s why so many people get into financial trouble. Sometimes families are hard to talk about. It’s hard to talk about money. And it’s even harder admitting your financial mistakes. Find someone that you feel comfortable letting in. The more open you are with your advisor, the better they can do their job.
- You want a team player. Your financial advisor will not and should not be everything to you. They should be just one player on your team. Find someone who is willing to work closely with your accountant, your attorney, your heirs, your caretakers and so on. No one person knows everything and an advisor who suggests to you that they can do it all on their own is lying to you and themselves. They may very possibly be your first team member and have great suggestions for your other positions, but they shouldn’t be the only team member.
Finding a financial advisor can be difficult. It means choosing to trust someone with one of the most personal aspects of your life. Trust your gut, ask all your questions and don’t be afraid to have high expectations for this member of your planning team. Happy hunting!
