The seven roles of an independent financial advisor

The Seven Roles of an Independent Financial Advisor

Independent financial advice involves playing more than one role. The best independent financial advisors play multiple and nuanced roles with their clients, beginning with their needs, risk appetites and circumstances of the client, irrespective of what is going on in current markets.

Jim Parker, Vice President of DFA Australia believes good Financial Advisors actually play seven roles.

1. The Expert:

Now, more than ever, investors need independent financial advisors who can provide client-centred expertise in assessing the state of their finances and developing risk-aware strategies to help them meet their goals.

2. The Independent Voice:

The global financial turmoil of recent years demonstrated the value of an independent and objective voice in a world full of product pushers and salespeople.

3. The Listener:

The emotions triggered by financial uncertainty are real. A good independent financial advisor will listen to clients’ fears, tease out the issues driving those feelings and provide practical long-term answers.

4. The Teacher:                                       

Getting beyond the fear-and-flight phase often is just a matter of teaching investors about risk and return, diversification, the role of asset allocation and the virtue of discipline.

5. The Architect:

Once these lessons are understood, the independent financial advisor becomes an architect, building a long-term wealth management strategy that matches each person’s risk appetites and lifetime goals.

6. The Coach:

Even when the strategy is in place, doubts and fears inevitably will arise. The independent financial advisor at this point becomes a coach, reinforcing first principles and keeping the client on track.

7. The Guardian:

Beyond these experiences is a long-term role for the independent financial advisor as a kind of lighthouse keeper, scanning the horizon for issues that may affect the client and keeping them informed.

People’s needs and circumstances will change over time as will the nature of the advice. Vince Lam is an independent advisor, you can rest assured he will begin as The expert and become the The teacher and so forth, lastly The Guardian. Ultimately building a long-term relationship founded on values of trust and knowledge.

To discuss the many hats a good independent financial advisor must wear and how we can help you achieve your goals, contact Plutus Financial Guidance today on (02) 9188 8873 or via our enquiry form.

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