Financial advisors are amazing resources when it comes to knowledge and wealth-building. They literally can help their clients figure out what can “make or break” the bank. They are a part of your “team” and are always looking for ways to make sure you meet your financial goals.
However, they are also human, and sometimes they make mistakes that need to be improved upon in order to encourage a better customer experience. Here are three common mistakes I’ve seen financial advisors make:
1. Missing the Hand-Off
While juggling so many different accounts, there is always the possibility for one (or a few) accounts to fall through the cracks.
At larger financial institutions, senior advisors get to pick and choose which accounts they want to take on first. Often these accounts tend to be the larger accounts with high net worth. Then, the smaller accounts (lower net worth) get distributed among all other advisors. If an account fails to be distributed to a financial advisor without any notice, then the client stands to not see too much activity, growth, or money vested in their accounts. Their accounts do not get the attention and nurture they need in order to meet their financial goals.
It is important for financial advisors to keep an eye on all their accounts to make sure their clients get what they promised and reap the rewards of their investment. Do an audit and inventory of your company’s accounts on a weekly and monthly basis to make sure all bases are covered.
2. No Follow-Up
Many financial advisors are great at giving recommendations, however, none of it matters if none of it is applied and followed through on.
For example, financial advisors continuously help their clients on matters that involve other professionals. The wealth of their estate may involve a family and estate planning attorney to make sure all the right assets are properly placed in a living trust. During tax season, the certified public accountant (CPA) helps the client file their taxes, and they must properly document their client’s qualifying expenses with the correct dollar amounts to be eligible for tax credits and deductions. While a financial advisor can task the client to contact these different professionals to get the help they need, the financial advisor needs to follow up with their client to make sure everything is getting done the way it should be. If not, then the client stands to lose money or get into unnecessary legal matters for not filing the correct forms.
If you are a financial advisor and you want to improve the client experience, go ahead and offer to reach out to the other members of your clients’ professional team (e.g., CPA or attorney). When you do that, you can coordinate directly with them and take it off your client’s hands.
3. Serving Reactively, Not Proactively
As a financial advisor, it is important to not be driven by hot trends or market fears when it comes to serving your clients.
Leading up to the 2008 housing bubble, there was a subprime mortgage crisis taking over the country. Banks were giving out more loans than the market could handle, and as a result, many homeowners were underwater and some had to foreclose on their home. Since then, subprime mortgages have been thrown out the window.
When it comes to serving your audience, financial advisors need to help their clients make the best decisions possible by using strategies that will both protect and grow their money. No one can determine what the future will bring, but you can definitely play a hand in your clients’ financial well-being by always bringing common sense to the table and following safe practices that stand the test of time.
What to do From Here?
As a financial advisor, you have a lot to keep track of in your responsibility to keep track of client numbers and financial goals. To keep everything organized and well-managed and lessen the likelihood of making mistakes, it’s best to draw on different resources to make sure you get the help you need. This may be in the form of hiring more employees, creating a stronger network of professionals to build trust with, and even using automation and software to create a fluid workflow.
As a fintech company, we would love to see if our software can help you and your clients out. See our Retirement Plan Simulator in action or start your free trial today. If you want to learn more about what we do and how we can help, contact us at firstname.lastname@example.org, 309.650.1125, or schedule a meeting online.
About Advisor Controls
Advisor Controls is a joint venture between an industry-leading fin-tech company and million-dollar advisors. With the development of innovative tools that enable advisors to optimize product mixes and maximize planning outcomes, Advisor Controls has cracked the code, delivering an easy-to-use solution for understanding and advancing clients’ retirement income stories. Advisor Controls provides independent financial advisors with the resources, technology, and best practices to accelerate their growth and model their business after top-producing advisors. Learn more about Advisor Controls and what it can do for your firm by visiting our website.