As we approached 2020, no one could have predicted the economic fallout the COVID-19 pandemic would bring, including shutdowns, high unemployment and market volatility. The pandemic changed the financial landscape, spurring many to adjust their financial plans, portfolios, retirement savings and other aspects of financial planning.
As you review your own financial situation, a trusted advisor may be needed now more than ever to help you navigate the pandemic’s financial impacts today and into the future. Not only will a financial advisor guide you through our current times of uncertainty, but they can also help you develop a holistic plan – empowering you to feel secure in your financial future.
Working with a financial advisor is very personal, as your money is closely tied to some of the most intimate aspects of your life. You should aim to create a long-term relationship with a trusted professional, and your partnership should adapt as your finances evolve and your goals change. To help you find the right professional, here are four characteristics a good financial advisor may have.
1. Prioritizes Your Financial Objectives
We all have unique financial goals and milestones, and a good advisor is well-equipped to help you achieve them. Your advisor should work with you to understand your short- and long-term goals, and help you develop a financial plan that is centered around these values.
Although a holistic approach to financial planning is essential, each financial advisor may have certain specialties or areas of expertise. Determine your priorities by identifying what you are working towards. Then, find an advisor whose expertise and experience aligns with your defined goals.
2. Is a Fiduciary with Strong, Verified Credentials
It is important to ensure your financial advisor is a fiduciary—someone who holds a legal or ethical relationship of trust and is required to act in the best interest of their client. On the other hand, non-fiduciaries are only required to offer advice that is suitable, but not necessarily the best option for you.
A Certified Financial Planner (CFP) professional is a great example of a fiduciary. CFPs are held to the CFP Board’s Code of Ethics and Standards of Conduct, under which they are required to act in their clients’ best interests. Failing to uphold the Code and Standards results in disciplinary action against the CFP.
In addition to CFP, there is a wide array of credentials that financial advisors can hold (CFA, ChFC, PFS, AIF, just to name a few). Credentials are typically earned by passing an exam that demonstrates proficiency in the subject matter at hand. Because each designation signifies a certain level of training or area of expertise, it is important to understand and confirm the credentials of any financial advisor. There are several tools that can help you verify an advisor’s credentials, including:
- The CFP Board’s “Verify a CFP Professional” tool
- The Securities and Exchange Commission (SEC)’s Investment Advisor Public Disclosure search feature
- The Financial Industry Regulatory Authority (FINRA) BrokerCheck website
3. Demonstrates Strong Relationship-Building and Communication Skills
The relationship you have with your financial advisor should be a partnership – together, you work toward your goals. Because your advisor’s guidance impacts your money, your relationship is both significant and personal.
Your advisor should establish and uphold clear expectations for communication, including frequency, method and point of contact. Strong communication is key to building a long-term relationship. It is also important to ensure the advisor communicates effectively. When you ask them to explain a financial concept, do they articulate clearly and explain it to your satisfaction? To get the most out of your relationship, you must be able to ask questions comfortably and get the answers you need.
4. Focuses on Your Long-Term Success
Though your pandemic-related financial concerns may be at the top of your mind right now, it is important to work with an advisor who is focused on long-term plans. Measuring success through the achievement of long-term goals and milestones is a better indicator of financial accomplishment than other investment benchmarks. An advisor who takes this into consideration will be able to create a complete and effective financial plan that guides your success far beyond COVID-19.
Boulay Can Help
Obviously, financial advisors can have many positive attributes in addition to these four. Above all, it is important that your advisor takes time to understand your goals and works with you to create a financial plan that helps you get there. Boulay’s financial advisors are committed to providing wealth management services that reflect what you value most. To learn more, talk to a member of the Boulay Financial Advisors, LLC team today at 952.893.9320 or learnmore@boulaygroup.com.
Investment Advisory Services offered through Boulay Financial Advisors, LLC a SEC Registered Investment Advisor. Certain Third Party Money Management offered through Valmark Advisers, Inc. a SEC Registered Investment Advisor. Securities offered through Valmark Securities, Inc. Member FINRA, SIPC
Boulay PLLP and Boulay Financial Advisors, LLC are separate entities from Valmark Securities, Inc. and Valmark Advisers, Inc. Prime Global is not affiliated with Valmark Securities, Inc. and Valmark Advisers, Inc.
Certified Financial Planner Board of Standards, Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, and CFP® (with plaque design) in the United States, which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.