Financials Matter

"It's Not Just About Finance"

2 Big Mistakes Advisors Make With Clients

Have you ever listened to your financial advisor explain something to you and thought, “What does that mean?”

Maybe it sounded impressive (and you didn’t want to admit you didn’t understand them).

Instead, you just agreed with what they were saying and went along with their suggestion.

 It happens all the time.

And it’s one of the most common mistakes advisors make with their clients.  It’s called “assuming your client understands you.”

Please understand, I’m not knocking the credibility of financial advisors because this happens in most professions.  The professional speaks in a language that’s familiar to them but not always to the client, patient etc.

We (I’m speaking as a former advisor) communicate with words that we understand and assume that the person listening to us knows what we’re talking about.  We also assume that every investor out there is up-to-date with all that’s going on in the markets.

Big Mistake…Huge.

Most investors are more interested in their own lives than what’s going on in the global markets.  That’s human nature.

So, you should never be afraid to ask the question, “What does that mean?”

The second biggest mistake advisors make is when they fail to admit they were wrong about something.

This eventually backfires because if you know someone has made a mistake and doesn’t admit it then your trust in them comes into question.

However, if your broker says something like, “I’m sorry about how that last recommendation turned out because…”  wouldn’t you be more likely to forgive them?

We publish a series called How to Choose a Financial Advisor That’s Right for You.  It focuses on key things to look for when you’re seeking professional help.

It’s available (HERE)

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