Do Financial Advisors Listen?
Does your financial advisor hear you or listen to you? There is a big difference. Often, we are asked, “What sets you apart from other financial advisors?” Trust me – there is no magic portfolio, secret sauce, or silver bullet. But there is a key ingredient that brings all components of financial planning together if properly used with authenticity and purpose.
I work in an industry where “We listen...” is thrown around loosely. “We listen to what your goals are” or “We hear you every step of the way.” Better yet... (if you’re old enough) “When E.F. Hutton talks, people listen” ... remember that one?
I have observed someone hearing me, but their reply had nothing to do with my statement or question. Clearly, that person was not actively listening. Why? It’s due to preparing our own rebuttal or response to what we THINK we hear. We spend time formulating the words WE want to use, or the point WE wish to make, without listening to the meaning of the words being shared with us. But it goes deeper than that.
Hearing will allow the syllables to be recognized as communication. Listening means identifying voice inflection and tone. It is at this juncture that financial advisors move their effectiveness in your financial planning to the next level.
Some Examples of Listening in Action
A. Client: “I don’t want to sell the mountain home if possible.”
Was there a nostalgic tone in their voice? Were they vehement? Hopeful? What was the facial expression? Did they adjust body posture when they made this statement? Were they smiling?
Listening forces us to ask more questions for clarification:
- How did you acquire your mountain home?
- Do you go there often?
- What are your fondest memories there?
- What do you envision this property becoming?
B. “Retirement is not for me. I’d like to create a business that does (fill in the blank).” Is this person fearful? Are they being forced to retire? What are the family’s plans as a whole?
Why would someone want to start from ground zero to create, build, and work at a
brand-new business endeavor when they “enter” retirement? Once you listen, ask the right questions, then go to where THEY ARE, you will blend your acumen with their desire and vision, and THAT is where the magic and connection happen.
Offering off-the-cuff suggestions to “what if’s” isn’t what we do. Financial and estate solutions are NOT one-size-fits-all. It takes truly understanding where that family is at and meeting them there. We listen, manage wealth, and build plans with the family at the center of it all.
What Does a Financial Advisor Do?
A financial advisor does much more than handle investments. At Wilmarth Private Wealth Management, our approach integrates financial, retirement, and estate planning, including risk mitigation, philanthropic endeavors, and tax coordination.
Financial advisors help navigate life's complexities, whether preparing for retirement, supporting a family legacy, or monetizing a business. Listening is the foundation. By understanding your goals, values, and aspirations, we design customized solutions rather than generic strategies.
For example, if you're worried about preserving assets during retirement or ensuring your heirs are cared for, a financial advisor creates plans addressing those concerns. From optimizing cash flow to coordinating with CPAs for tax efficiencies, advisors streamline financial management.
How Do Financial Advisors Make Money?
It's natural to ask, "How do financial advisors make money?" Transparency is critical. Advisors may earn through:
- Flat Fees: A fixed rate for services like financial planning or portfolio analysis. Asset-Based Fees: A percentage of assets under management (AUM).
- Commissions: Compensation from selling financial products, such as insurance.
At Wilmarth Private Wealth Management, we prioritize transparency. Clients know how we are compensated, whether through flat fees, AUM percentages, or other structures. This clarity builds trust and ensures alignment between your goals and our advice.
Are Financial Advisors Worth It?
Are financial advisors worth it? For most people, the answer is yes—especially when it comes to achieving long-term financial security and peace of mind. Advisors provide expertise that can save you time, optimize your investments, and mitigate costly mistakes.
Consider these scenarios:
- You’re unsure how to prepare for retirement while funding your children’s education.
- You’ve received an inheritance and don’t know how to manage or invest it.
- You want to establish a charitable giving strategy that aligns with your values.
In these cases, financial advisors bring the knowledge and tools to address your unique situation. They help navigate unexpected life changes, from career transitions to family emergencies, providing clarity and actionable plans.
Do I Need a Financial Advisor?
Do I need a financial advisor? The answer depends on your financial goals and situation. If you’re confident in managing your finances, you may only need occasional guidance. However, if your needs include comprehensive planning or specialized advice, a financial advisor is invaluable.
Here are signs you may benefit from a financial advisor:
- You’re nearing retirement and want a solid strategy.
- Your financial situation is complex (e.g., multiple income streams, business ownership).
- You want to leave a legacy for your family or charity.
Advisors like those at Wilmarth Private Wealth Management tailor strategies to your unique goals. From creating estate plans to mitigating taxes, we provide the expertise to help you thrive financially.
How to Select a Financial Advisor
Knowing how to select a financial advisor is crucial to finding the right fit. Start by evaluating their:
- Credentials: Look for certifications such as CFP®, which signify expertise.
- Experience: Seek advisors with a proven track record in areas relevant to your needs.
- Communication Style: Choose someone who listens actively and provides clear explanations.
Ask prospective advisors:
- How are you compensated?
- What’s your approach to financial planning?
- How do you tailor advice to clients with unique needs?
At Wilmarth Private Wealth Management, our commitment is to listen first. We prioritize understanding your needs and providing actionable strategies based on mutual trust and respect.
Listening Creates Tailored Solutions
Listening Creates Tailored Solutions
Listening allows us to present the best plans suited to your unique situation. This approach creates an advisor-family relationship built on trust and understanding. People like to be heard, and they value options. A plan crafted specifically for their goals is more likely to succeed.
Wealth management plans go much deeper than investments. We address longevity planning, risk mitigation, business monetization, retirement planning, and tax coordination. Understanding the “why” behind a family’s goals helps us present meaningful options that align with their vision.
Start your financial planning journey today with advisors who truly listen!
Contact Us
Ready to take the next step toward financial independence? Contact Wilmarth Private Wealth Management to schedule a consultation. Let's work together to build a financial plan that aligns with your goals and aspirations.
