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Our money is very personal. We tend to be too private about it and rarely open up and share our financial skeletons, our mistakes, what keeps us up at night, how much we earn, how much we have, etc. How many people do you actually tell about your money?
This is the challenge and the opportunity. Most of us need help understanding and managing all aspects of our money, but we have one big hurdle that stands in the way of getting help: lack of trust. It’s scary to open up and let someone into your financial life, so we tend not to let others in and then suffer the consequences of not getting the professional help we need to get. the results we desire.
Communicating with a financial advisor is a bit like dating. Have you ever had a first date that went wrong? Most of us have! We can learn a lot from the dating process when it comes to finding the right financial advisor for us. Here are three things to consider when researching and hiring a Financial Advisor so you can become the master of your money and take steps to improve your finances.
Where we find our important financial adviser
When we are ready to engage in serious long-term relationship of trustWhether it’s marriage or with a financial advisor, we tend to seek out sources of credibility that inspire trust. I like to compare this to finding your life partner through eHarmony vs Tinder. Both provide a service that people are looking for, but the experience and results are arguably very different.
When we are looking for a financial adviser, we have a similar situation. Finding a financial advisor by receiving an ad on Facebook and then being bombarded with cold calls doesn’t seem quite right. It doesn’t exactly give us the confidence we need to talk about our money. Would you like to marry a counselor you found this way?
Instead, people should look in places where a community of advisors already exists, like the CFP Board Let’sMakeAPlan service. Like dating, it helps us know we’re looking in the right place to find the first date we really want to have. But this creates another problem: how can we choose the right advisor for that first date where we have hundreds of choices?
How we choose our financial advisor matters
Have you ever heard of the jelly riddle? Basically, when we’re given more than about five jelly choices on the grocery store shelf, we close and choose none. The same is true when trying to figure out which advisor to choose. Serving up a list of hundreds of potential advisors is overwhelming, we just won’t choose any at all. Imagine having to choose your first date from over 100 people, forget it!
The importance of consulting engagement is becoming increasingly important. It is essentially how an advisor connects with us and listens to us which, in turn, instills trust so that we take action. Connecting with a finance professional is of the utmost importance because getting help with our money forces us to open up and take action.
If we don’t communicate with our advisor at a deep level of understanding, chances are we won’t talk about our money, let alone act on the recommendations they have for us, so the first step is about finding and connecting with an advisor we can trust. We know of the paradox of choice that we won’t make a choice when we have too many options to choose from, so we need to find a place or service that helps us narrow down the choices from hundreds to three or four.
Our brain can handle that. The challenge here is that most “refining” processes only allow us to refine things like where we live or what kind of credentials an advisor might have. Both are useful, but we don’t communicate with other human beings based solely on our zip code.
How getting in touch with a financial adviser is important
I love this quote from former President Theodore Roosevelt: “Nobody cares what you know until they know how much you care.”
When you meet to find and marry your life partner, your first and second dates will cover topics such as your interests, your background, what you went to school for, what you like to do for fun, etc We’ve been talking about these things since we’re hardwired to connect with other people like us based on a variety of commonalities, philosophies, interests, etc. But ultimately, we touch on the topics of money, employment, flaws, quirks, family baggage, and more. In other words, once we know we love each other, we start digging into the less glamorous but equally important topics.
The same should happen when we seek and try to contact a financial advisor. It’s important to get to know your advisor on a human level first. Do you love yourself? Do you have any commonalities, etc. ? Once you feel you could work with a particular advisor, you can then dig in to ask more business-related questions. questions.
People should look ways to connect with their financial advisor as they would with someone they might date. Do you have commonalities, experiences, interests and philosophies? Connecting to these levels will set the stage for trust and openness about your money. Trust is a byproduct of what I call human dimensions. Once we connect on these dimensions, then it becomes very important that the advisor we are considering has the experience and credentials to best assist us – hence the above quote from Roosevelt.
Relationships matter. When it comes to finding the best financial advisor, consider these three tips. Getting help with your money is just as important as knowing where and from whom you get help.