subject: Financial Advisor-client Relationship Is Critical In Devising Proper Financial Strategy [print this page] The relationship between a financial advisor and a client is one that requires trust and a mutual understanding. The client and advisor need to construct realistic income and lifestyle goals in order to formulate the best plan for the client's needs. Advisors who participate in investment management training or money manager training are provided with a professional perspective in the field of financial advising and can expand their skillset. Advisors who take the time to go undergo investment management training will find that their client relationships will strengthen due to an increased level of trust. The client invests their life savings with the financial advisor's guidance and looks to their advisor to help them make the smartest decisions possible.
Most adults are not receiving proper advice when it comes to money management. 50% of workers age 45+ do not know what they need to retire and 67% of investors with $250 thousand in investable assets are concerned about out-living their assets. The role of a financial advisor is to develop a plan that their clients understand and trust. Money manager training is invaluable to an advisor to learn how to build a plan and then execute that plan soundly. In the past, financial advisors have been encouraged to simply buy and sell investments in attempt to grow the client's assets. Now, advisors are expected to consider all of their client's assets in context of their life. This oftentimes includes a client's parents as well as their children. Since 1994, three times as many adults are financially burdened by the cost of taking care of their parents. Every factor must be considered when attempting to balance investment income and capital gains with an acceptable level of risk for each individual client.
Financial advisors must cater to their clients desires, but it is ultimately up to the advisor to stay educated on current methods of investment. Attending investment management training will teach advisors which value stock sectors outperform their growth counterparts. A financial advisor should understand valuation numbers and be able to determine when equities are fairly valued. Additionally, an advisor should know when indexing should be utilized and when active management is best. Money manager training teaches advisors these skills and how to properly explain these strategies to their clients to help build the trust necessary for a successful and lasting relationship.
The United States' economy is increasingly volatile. Our population is growing older, and is in need of the best advice available when it comes to preserving assets long-term. 20% of employees plan to retire later than they had originally anticipated, and 25% of adults now at the age of 65 will live to age 90. That means that people will need their assets to grow over a longer period of time. Advisors should utilize all of the methods of investment including funds, annuities and thorough estate planning to set adults up for retirement. Participating in various forms of training and learning how to explain strategies will be crucial to helping this generation ease into old age.
by: Cory Bowman
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