When people trust you with their money, they are placing their faith in you when it comes to their most important thing in life besides their money and health. Accordingly, people will not choose just anyone to give them financial advice because the consequences of bad assistance can be disastrous. To become a client’s financial advisor, you must earn their trust. Here are four ways to become a trusted financial advisor.
Act in the Customer’s Best Interest
Of course, regulations state that an advisor must provide advice that is in the best interests of the customer, but that does not always happen in practice. There are certain courses of action that may benefit the financial adviser in some way but do not help the customer. These should be avoided. The customer must know that your advice is thoroughly objective and not colored in any way by self-interest. The legal term for this is the fiduciary duty that a financial advisor should owe to their customers. This should be taken seriously and your actions need to convey to the customer that you uphold this duty at all times.
Stay Knowledgeable
As a financial advisor, the customer is looking to you to provide them with the knowledge necessary to effectively manage their money. People will likely have many questions when it comes to investing their money. You should maintain a strong enough level of background knowledge that you can answer all of these questions. Staying well informed will not only help you build a book of business, but it will also help keep your customers loyal. If you are going to recommend a certain investment, it is imperative to know that investment in detail before you give the advice.
Be Responsive
You never know when your customers are going to want to talk to you about their money and investments. It may not always be during business hours since investors may be busy with their own work while the markets are open. Be prepared for calls from your customers at odd times because their money may be on their mind. While you do not have to field calls during dinner and other difficult times, make sure that you always return calls and answer emails promptly. When your customers feel that they are not getting the information when they want it, they will start to lose faith in you as their advisor. Strategic Financial Solutions is a responsive and trusted advisor that helps customers with their financial situations.
Learn New Products
There are always new financial innovations that are coming on to the marketplace. Many customers like to feel that they are on the cutting edge of finance, while others like to stick with what is tried and true. You should always make sure that your knowledge is broad enough to cover new products so you can present that option to your customers. This can serve to differentiate you from other financial advisors. This can be even more helpful to your customers since many investors miss out on years of profits before an investment is understood by the mainstream. Plus, when you learn of a new product, it gives you a reason to call your customer and place yourself in the role of their trusted counselor. This helps build your customers’ loyalty.
You can earn your customers’ trust as a financial advisor by making sure that you follow a handful of simple rules. So long as you act in their interests, stay informed and are responsive, your customers will find it easier to place their faith in you.