| To help you determine quality, we have created a short list entitled, Reasonable Client Expectations of their Financial Advisors for your consideration. We hope that it helps you find the right financial advisor that will help you identify, define and achieve your personal goals. |
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Reasonable Client Expectations of their Financial Advisor
Some of the items may seem obvious. However, each is important.
| 1. | You are an individual person, not a generic, one-size-fits-all person, and you should be treated as such. Beware of the advisor who makes the same recommendation for everyone. |
| 2. | Any investment vehicles recommended should be based on your financial needs, not the commissions generated for the advisor. Investment recommendations should only be made for you after a thorough review of your personal situation and specific investment objectives. |
| 3. | You want an advisor who knows what questions to ask, one who goes beyond the simple questions asked on a "new account" form. You advisor should ask you pertinent questions about your goals, desires, income, objectives, family situation, risk aversion, etc. |
| 4. | If an advisor doesn't even try to explore your situation in detail, do yourself a big favor and get another advisor. |
| 5. | Your investments with respect to your financial objectives should be reviewed quarterly. You should know if you are on track to accomplishing your objectives. If not, why not? You should be able to see how your investments are doing relative to various indexes and relative to pre-established objectives. |
| 6. | You should be provided with a formal written investment plan. Your advisor should have written notes of your particular needs The next time you visit your advisor, do yourself a favor and ask to see your file. It should contain something beyond a checkmark on some form. |
| 7. | You should insist on an advisor that regularly updates his professional knowledge . This should go beyond reading investment news. Do they have certification from an independent organization? Do they have internal certification? Do they have anything at all? Do you see credentials? If not, ask if they have any professional certification or are working on some sort of certification. (Just because they may not have anything doesn't mean that they're no good, but a warning flag should appear in your mind.) |
| 8. | Does your advisor have a clean work record? You can easily find out from the National Association of Securities Dealers (NASD) in Washington, D.C. |
| 9. | Your advisor should have assistants who are able to assist you. You should ask your advisor questions about who is on the team of financial experts that are able to combine their efforts on your behalf. |
| 10. | Any comprehensive financial plan should include insurance, conservative savings and investments. You need a blend of each. |
| 11. | All investment recommendations should take into account your current and anticipated tax situation, your life's goals, the legacy you would like to leave, etc. |
| 12. | Your advisor should should be able to keep you informed on market conditions and offer reasons for his recommending particular products/services. |
Your Responsibilities
Since it is your money and your future, you must assume certain responsibilities. They include:
| 1. | The need to shop around. Don't pick the first person you meet. Interview at least two others and then choose the one you feel is the best. Ask for references. |
| 2. | The obligation for basic investment education. You don't have to know the in's and out's of everything, but you should know the risks and the basic information on what you are purchasing. If we can help you with information, e-mail us at Info@TheProgressCenter.com. |
| 3. | You must let your advisor know when there are changes in personal circumstances such as loss of a job, a marriage or divorce, major illnesses, an inheritance or major debt incurred. Your investment strategy may have to be modified in accordance to these changes. Remember to keep your long-term goals constant and consistent, and allow your investments to change based upon divergent/convergent economic and market circumstances. |
| 4. | Think beyond growing your money to meet immediate needs. Concretely define your long-term financial goals (e.g., your grandchild attending an ivy college versus just attending college). |
| 5. | Take the long-term approach to the market. |
YOU, the CLIENT, Are the Heart and Soul of Our Industry
You deserve the "best of the best". The Progress Center's mission is to assist financial advisors and their firms to provide high-level, quality service to you.
(c) 2003 The Progress Center. If you should have any problems with this page, please e-mail us at seller@sellerdoor.com. Your satisfaction is of utmost importance to us!
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