Eight ways to improve your relationship with your financial adviser

Who would you say is the most important person you have a relationship with, when running your own business? Your bank manager, accountant or lawyer? Maybe your best client, your preferred supplier or your spouse and family? No doubt all of them, to varying degrees. But the one we’re going to focus on here is the one with your financial adviser.

We’ve identified eight key ways you can be a good client:

  1. Be honest – share your goals, objectives, setbacks, triumphs and successes with your adviser so they can best help you achieve your aims – and keep them informed if your circumstances change.
  2. Don’t keep shopping around just based on the lowest fee but look for competitive and reasonable rates in light of what is being offered. Yes, the fee structure should be fair and and transparent but good advice deserves appropriate compensation.
  3. Don’t judge investment results based on just one year’s return – three or five years is a much more realistic timeframe – what is more relevant is whether your investments are on track to meet your goals.
  4. Don’t expect the impossible – in the current climate you’re not going to get 10% returns so don’t expect them – also accept that there will inevitably be some ‘down’ years.
  5. Make sure you compare like with like and understand the different types of advice being offered: for example, an adviser can offer both financial planning and investment advice; DIY advice doesn’t carry a fee but means you are entirely on your own in terms of investments, portfolio building, taxes and estate planning. Online tools can help with investments but usually do not provide financial planning.
  6. Be aware that small portfolios may get less attention – ask an adviser what level of service a portfolio like yours would get. If you only have a small amount to invest, for example, less than £75,0000, it may be that online advice would be more appropriate.
  7. Try not to chop and change adviser too frequently – it cancels out all the preparatory work done in getting to know you and your requirements. As a result, an adviser may be reluctant to take someone on who moves around a lot as it suggests it is very difficult to meet their long term goals and expectations.
  8. Prepare for any meeting with your adviser as you would for a business meeting – review your investments before the meeting and jot down anything you want to ask.
running your own business

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