Have you noticed similarities in the services offered by most personal financial advisors and their firms? To see, just review the website of a few advisors and try to discern any meaningful difference between them. I think you will find the exercise challenging.
This lack of differentiation may not be a problem if you find the services provided by traditional advisors appealing and your results are good.
However, if you have never worked with an advisor or, if you are seeking a different approach, we have six ideas that may provide a breath of fresh air. More importantly, they may improve your financial results.
Here is a summary of each idea along with links to learn more:
Unconventional Idea #1
Ditch your traditional wealth manager. The financial services industry lacks objectivity, is focused on making sales, and is motivated to gather assets to manage at the expense of other valuable services. Further, if you have accumulated wealth, the financial services industry isn’t set up to address your unique needs. A better type of consultative service is available. Read our article Dissatisfied with Your Wealth Management? Here’s Why and a Better Approach to learn the details.
Unconventional Idea #2
Focus your time and effort on non-traditional financial concerns. This may be surprising, but traditional concerns such as tax reduction or investment performance may not be the real reason you aren’t completely satisfied with your wealth management. Less commonly addressed concerns such as lack of time or lack of an actionable plan are just as prevalent and more problematic. Ways to find relief from these concerns is similarly less obvious. Learn more by reading our article The Real Reason You’re Not Satisfied with Your Wealth Management.
Unconventional Idea #3
Have a simple but effective method to monitor your financial goals. Most people’s financial goals are fuzzy and undocumented, and most don’t track results versus goals. Yet, studies clearly show that if we write down and monitor our goals, we are much more likely to achieve them. Our article How to Successfully Monitor Your Financial Goals outlines four key requirements to goal setting and monitoring, tools you can use, and an example of a goal-monitoring approach in action.
Unconventional Idea #4
Find a knowledgeable and trustworthy financial confidant. A sounding board - someone you can bounce ideas off and “think out loud” with - can help you avoid costly mistakes and make better financial decisions. Learn the five prerequisites for a good sounding board and how to find one by reading The Surprising Key to Financial Peace of Mind.
Unconventional Idea #5
Monitor your balance sheet with a financial dashboard. A financial dashboard is a secure, electronic portal that organizes your personal finances and provides an at-a-glance view of your complete financial holdings (all assets and liabilities) with daily updated account values. Without this tool, you will miss improvement opportunities. With it, you will keep your finger on the pulse of how you are doing financially and feel in control. Read our article Make Your Financial Life Simple Again to learn more.
Unconventional Idea #6
Find a financial advisor who is motivated to do their best possible work. For proper motivation, alignment between the services you want and how the advisor is compensated is key. Compensation drives advisor behavior and, if there is misalignment, you will be disappointed with the relationship and services provided. Learn more and gain access to our Advisor Compensation Guide by reading How to Compensate Your Ideal Wealth Manager.
You are probably familiar with the saying: “The definition of insanity is doing the same thing over and over again and expecting different results.” Whether you manage your wealth on your own or work with traditional financial advisors, if you are dissatisfied with your results, an unconventional approach may help. It could be your ticket to a level of service from a wealth advisor that exceeds your expectations. Ultimately, such a positive relationship may restore your confidence in your wealth management.