Last week we discussed why clients leave their advisor and how communication is vital in the relationship. In this post, we will follow up with some questions, which help to solidify the client-advisor bond.
Before we begin, it is essential to point out that if the advisor is not the "right kind" of person, the advisor-client relationship will be limited. What is the "right kind" of person? Here is an example to explain. Early in my career, my mentor (now a top executive with a fortune 500 company) told me that I should do well in this business. When I asked why he believed that, he replied, "Because you care."
In short, when an advisor truly cares about their client, they will go the extra mile to help, even if they do not benefit as a result. In the political arena, one person often helps another because the other can do something for them. Simply translated, it means, "I'll scratch your back if you'll scratch mine." This is fine, as long as the individuals doing the scratching are doing the right thing. Many times, they are attempting to fulfill their own need.
Unfortunately, the financial services industry is full of individuals who are self-focused. Actually, that's just human nature. If this were not the case, we would not be debating the fiduciary standard. Rather, everyone would simply accept the premise that the client's interests should be the only consideration. But I digress.
