Ten traits of successful financial advisors

Helping you build financial wellness

Most Canadians say they are informed about money matters, yet still rely heavily on an advisor when making important decisions about their finances. For situations that are complex or where large sums of money are involved, an advisor's knowledge and expertise can be invaluable.

Choosing a trusted and knowledgeable advisor is one of the most important financial decisions you'll make. So what makes a great financial advisor? Here are ten key attributes to look for.

1. They have a good reputation

Getting a strong referral from a friend or family member can be the first step in finding the right financial advisor. Consider the background and reputation of the company the advisor works for. Are they local? Do they have a strong track record of success? Be wary of hot-shot planners who seem to be too good to be true – they usually are.

2. They take a proactive approach

Good advisors keep the lines of communication open, updating you on current financial issues and opportunities. They help make complex financial concepts easy to understand. A financial advisor that withholds information or doesn't take the time to clearly explain their recommendations is not worth your time (or money).

3. They don't panic

Finding an advisor who is patient and doesn't panic is critical for success. You want a planner who is always evaluating what options are best for you, but does not divert from a well thought-out strategic plan. Avoid advisors who are constantly pumping the latest hot stock pick with a sense of urgency; they may not have your best interest at heart. There should be no sense of urgency when it comes to sound investing that leads to long-term growth.

4. They invoke confidence and trust

You need a financial advisor you can trust so that you have confidence in their recommendations. If you feel anxious, fearful, or stressed out after discussions with your advisor, trust your instincts and end the relationship.

5. They are an experienced financial professional

All legitimate financial advisors should have significant experience in the financial services industry or some sort of industry-recognized certification. One highly regarded designation is that of Certified Financial Planner (CFP)^®, awarded in Canada by the Financial Planners Standards Council. CFP professionals must meet standards for experience and ethics, as well complete 30 hours of continuing education every year to maintain this accreditation.

Other respected forms of certification include the Canadian Investment Manager (CIM), Financial Management Advisor (FMA), and Personal Financial Planner (PFP) designations. Always verify your advisor's experience and credentials. Doing your due diligence and a bit of research up front will help protect your interests and ensure you're dealing with a reputable advisor.

6. They take a holistic view of your finances

Sound financial advice considers more than just your income level or the types of asset classes you are prepared to invest in based on your risk profile. A good financial advisor will take the time to learn about your full financial situation, investigating your banking, investment, insurance, and credit needs. Only by understanding your spending habits, debt obligations, life goals, and other money matters can a financial advisor truly begin to develop a meaningful and accurate strategy for you.

7. They have a support team

A good advisor should have access to a broad range of experts to meet your specific needs. A team approach will ensure that you get the professional advice you require to meet any specialized investment, wealth management, insurance, or debt management objectives.

8. They have a clear strategy

Just as you wouldn't take a trip across the country without a map or GPS, you shouldn't try to steer your financial future without a clear direction. And if life circumstances change, as they often do, your advisor should take those under consideration and help you revise and update your financial plan.

9. They work with you

A good financial advisor will meet or consult with you – and your significant others – regularly throughout the year. And that level of attention should continue throughout your relationship. Too many times, people meet with an advisor, develop a plan, and then simply get periodic statements with no interactions or explanations.

10. They put your interests first

Professional advisors tailor your plan to meet your goals. They don't push products on you simply to meet a quota or to get the biggest commission. Check whether your advisor represents a wide range of products and service options or if they're restricted to only proprietary solutions their company sells.

Do you have a professional financial advisor? If not, BlueShore Financial's team of financial advisors are here to discuss your needs and their financial planning approach, including our unique LifeSpring® assessment and planning process.