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It’s okay to have expectations of your Financial Advisor…

Ever wonder if you should have more contact with your financial advisor? We’ve been meeting with people for years who are moving from financial advisors for reasons that almost always include a lack of contact. Beyond receiving your account statements in the mail, regular and consistent contact with a financial advisor is not an indulgence. It is a necessary piece to keeping your investments in your best interest. Here are just a few examples of why…

A couple in their 40’s had started a relationship with an advisor when they were first married–nearly 15 years ago. Their contact consisted of meeting one time per year, either in person or over the phone, along with regular account statements. Over time, they felt like their portfolio (investments) had grown incongruent with their goals. Their needs had changed, but the relationship with their advisor hadn’t kept up. Essentially, they were in a time warp with their investments and financial planning.

Another client in their late 50’s had been with the same advisor for nearly 20 years. They too had an annual meeting with the original advisor. The client had felt an annual meeting was fine. In reality, upon review, the returns minus fees, taxes and inflation were woefully short of the historical average returns for the S&P 500 as well as short of his expectations and needs.

So, it’s okay to expect more contact from your financial advisor and, in fact, we view it as extremely important for you to have that connectivity. Here’s why:

  1. Regular contact means you don’t have to “wonder” how your money is doing. You get regular feedback about your investments so you can gain peace of mind.
  2. What happens in your life is important for your money to know. When an advisor connects with you regularly, they have more up-to-date information about any changes in your life that may affect your money. This is very important in planning for your needs today and in the future. People tend to forget to call their financial advisor if there’s been a change, not always thinking of its impact on their money. It’s better to have your advisor calling you regularly.
  3. Anticipatory changes may be necessary if there’s something big brewing in your life. Regular contact with your advisor allows for this and less of a need for “after the fact” changes to your investments that may be more detrimental over the long-term. For example, needing additional cash for a major purchase that you didn’t plan for and having to sell investments when the market is down.
  4. If your advisor knows what’s happening in your life, they can help you with more than just investments. At Lenity, we do financial planning and investment management. Our many years of experience allow us to be a “sounding board” for our clients when they are making major life decisions. With regular contact, our clients get that sense of experience and compassion and seek to “check-in” with us when major decisions are being contemplated. Keep in mind, it is a privilege to help you and a good advisor can play an important role in your financial life if you connect regularly.

Important Note: The views expressed in this post are as of the date of the posting and are subject to change based on market and other conditions. This post contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected.

Please note that nothing in this post should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and should not be taken to be, investment, accounting, tax or legal advice. If you would like investment, accounting, tax or legal advice, you should consult with your own financial advisors, accountants or attorneys regarding your individual circumstances and needs. No advice may be rendered by Lenity Financial, Inc. unless a client service agreement is in place.