Change Ahead
The impending mass retirement, coupled with the accelerating Great Wealth Transfer, is set to usher clients into a new era of financial advisory relationships.
As the industry faces a potential shortage of new advisors, the demand for exceptional financial professionals is likely to surge. Yet, in the quest for a new advisor, investors should exercise discernment. Barron's recommends asking the following questions during advisor interviews:
1. Fiduciary Commitment: Inquire whether the prospective advisor is a fiduciary and, crucially, if they are fiduciary-only. A fiduciary-only advisor is bound by law to consistently act in your best interests - all the time.
2. Succession Planning: With a significant number of advisors planning retirement, it's essential to delve into the advisor's future or succession plan. Ensure your new advisor has a strategic plan in place to sustain excellent service for the long term.
3. Service Scope: Clarify the details of the services provided. If you prefer regular in-person meetings or require comprehensive financial services, such as tax and estate planning alongside portfolio management, set these expectations from the outset. Understanding the scope of services helps align your needs with the advisor's offerings.
At Rainbook, we advise going beyond surface-level inquiries and delving into specifics about how the advisor delivers the necessary services. There can often be a disparity between what advisors claim to provide and what clients actually experience.
Read the complete story at Barron's: "Your Advisor May Be Retiring Soon. Here's What to Know"