4 tips for clients picking advisors

Canadian investors need to take a more proactive approach to their financial futures, says the Canadian Securities Institute (CSI). And working with advisors is one way to do this.

Read: Help clients calculate rates of return

Here are four tips for clients, so they know what to expect from you.

1. Make sure personalities mesh

Different advisors have different backgrounds and levels of experience. Canadian investors have diverse needs due to differences in culture, lifestyle, family structure, levels of wealth and life goals. They should make sure the advisor has the experience and specialized expertise relevant to their financial and non-financial goals.

Read: Convince Gen Y to get advice

2. One size doesn’t fit all

Financial credentials and specialized designations are a good way to vet an advisor. Specialized designations show you’ve got the skills and knowledge to support specific client needs.

Read: Market differently to prospects and clients

3. Communication is key

Here are some questions every investor should discuss with their advisor.

• How will you communicate with me and keep me updated on the status of my account?
• Will you help me assess my financial and non-financial needs, formulate my goals and evaluate my options for the best use of my money?
• Will you help me access different aspects of financial expertise, such as investment advice; insurance, taxes or real estate management; estate and trust management; and retirement planning?
• How often will you review my portfolio?

Read: How to stand out

4. Discuss compensation

Clients have the right to know how advisors are compensated, and should ask:

• Will there be any advisory fees?
• Are you paid on product-based commission?
• Are there going to be any other costs associated with the delivery of financial advice?

Read: How I went fee-only