When you’re considering working with a financial advisor, it’s no secret that it’s critical to partner with someone who’s aligned with your values and priorities. But how do you ensure you find an advisor who’s just the right fit?
Authority Magazine recently interviewed JNBA President, Kim Brown, about the most important questions to ask when looking for a long-term financial partner. Authority’s Tyler Gallagher also takes a look at Kim’s career, the people who inspire her, and how she and the rest of JNBA’s management team are continuing to cultivate the firm’s next generation of advisors.
Here’s a brief look at the five questions she recommends asking – there’s a lot more good advice in the full article, too:
What are their values? Find someone who understands that the right thing to do is the only thing to do. “Will they do the right thing, even when no one is looking?” Kim says.
How are they compensated? It’s important for you to know how someone is paid so you understand the motivations behind what they’re recommending for you. Does the firm and/or advisor make a commission on the recommended investments placed in your portfolio or by making referrals to other professionals?
What is their wealth management philosophy? Aim to partner with a firm whose philosophy matches your own. “Are they going to create a financial life plan that’s fluid, that takes you through your life, that takes into account transitions that may occur in your life, expected or unexpected? Do they really, truly understand your goals?”
What is the firm’s culture like? To make sure everybody is focusing on one thing — what is in the best interest of our clients? — it takes a strong culture and leadership, proven processes and collaboration, and an extremely committed team. “Look for a culture based on trust, reliability, accountability, and advocacy,” she says.
What is the firm’s client retention rate? Seek out a firm that could become a long-term partner. Ask about their client retention rate. “In 2001, JNBA started tracking our client retention as an important way of measuring how we’re doing,” Kim says. “We knew that if we offered tremendous service and did what we said we were going to do, we would have the opportunity to build long-lasting relationships. And for more than 20 years, our client retention rate has been above 96 percent. That says a lot. Through bull and bear markets, people stay with us. We’re tremendously proud of that as a firm.”
Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from JNBA Financial Advisors, LLC.
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