Chances are, you have been asked either to help one of your clients with their personal finances or to recommend a counselor to them. The problem is, all advisors look alike on paper. So how do you ensure that you are making a good recommendation for your client, especially when you are putting your reputation on the line?
Here are five things you should consider before referring your client to a financial advisor:
1. How are they compensated?
Fees are very important to understand for consumers. If the financial advisor provides a “run around” answer, this should raise red flags and warrant additional questions.
2. Are they a fiduciary?
If the financial advisor is not a fiduciary, they may not act in the best interest of your client. This could be considered a deal breaker.
3. What are their credentials and experience?
At the minimum, you will want to ensure they are qualified to provide financial advice. A CFP® is the gold standard. In addition to credentials, ask about client retention. This will provide insight into how satisfied their clients may be.
4. What is their niche market?
Understand who would be a good fit for the financial advisor. There is nothing more frustrating to a client than being referred somewhere that is not set up to help them.
5. Do you understand their process and investment philosophy?
Knowing how a financial advisor operates will help you understand how your client will be treated. Ask if you can go through a sample process with the financial advisor to better understand their process and what types of clients could be a good fit.
We invite you to ask Foster Group these five questions. Learn how we aim for our clients to feel Truly Cared ForTM and how we could work together. Set up a meeting with one of our Financial Advisors by emailing us at email@example.com or call (515) 226-9000 and ask to speak with an advisor.
PLEASE NOTE LIMITATIONS: Please see Important Disclosure Information and the limitations of any ranking/recognitions, at www.fostergrp.com/info-disclosure/. A copy of our current written disclosure statement as set forth on Part 2A of Form ADV is available at www.adviserinfo.sec.gov.