I am surprised that clients don’t ask for letters of recommendation more often. References really help to understand who the advisor is and how clients have been treated over longer periods of time. Everyone has an opinion, and three references should do the trick. The references should be from different types of clients too – possibly one from a retiree, one a non-profit or one from a family that is in the midst of long-term planning. We encourage getting real life feedback because with reputations at risk, be assured that the substance of the reference is usually excellent.
The financial field is evolving a rapid pace, accelerated by new fin-tech innovations and low-cost investment solutions. Robo-advisors are taking share from human advisors, and people are ditching traditional money managers in favor of passive index investing. It begs the question – why even have a financial advisor anymore? Well, the reality is that while these new innovations certainly do have a place in the investment world, a qualified investment advisor still serves a critical role. In fact, with all the changes occurring in the world, we would argue that it has never been more important to work with a future-ready advisor than right now.