Finally, a Book That Lays It on the Table: a 7-Step Process for Separating the Good from the Bad - Financial Advisors
Selecting a competent, ethical financial advisor may be one of the most important decisions an investor makes to ensure their financial future. Unfortunately, there are many advisors who lack in many of the core competencies required – integrity, knowledge and professionalism.
After reading the 114-page book, Horsesmouth (a popular financial industry website) editor, Nicole Coulter said, “Every advisor needs to read this book to find out what they are doing right and, more importantly, what they are doing wrong. It’s a great educational tool that can help them reassess their business practices and to redefine how to proceed in the future.”
Investors need a method to evaluate their current or potential advisors beyond just going with gut instincts.
According to Drozdeck, the book was written as much for the financial advisor as for the investor. “While we’re not trying to ‘bash’ anyone, we do want professionals to be introspective when reading it. They need to ask themselves how they can change to become even better advisors for the benefit of their clients. Of course, if they feel comfortable they are doing the things outlined in the book, then it becomes a great educational and marketing tool to give to clients and prospects.’’
The book includes a five-part Trust Continuum for clients to use when evaluating their advisor. Included are:
a. Level of education / knowledge / experience
b. Quality of professional advice
c. Fairness of fees charged
d. Personal and team capabilities
e. Degree of caring about clients
Other topics covered are:
Investor Responsibility –– Encourages investors to take responsibility for their own financial futures by taking the time to question and evaluate the professionals they work with, or are considering working with.
Team work –– Does their financial advisor work in concert with other professionals (attorney, CPA, insurance professional) to ensure that all the client’s needs are taken care of.
Questions –– Includes questions they should be asking their advisor and questions their advisor should be asking them.
Education –– Covers both the importance of the advisor to receive ongoing education and the importance of investor education.
Written plan –– What is it and why should it be provided.
Credentials –– How, specifically, can an advisor’s disciplinary history and their credentials be checked.
Process –– Explores the importance for the advisor to have a process to ensure nothing falls through the cracks.
The Savvy Investor’s Guide ... is a must read book for investors and, hopefully, their advisors will feel confident enough with the way they conduct their business to give them a copy.
Steven R. Drozdeck (www.drozdeck.com) has been involved in financial services since 1974—first as an advisor (stockbroker) for six years, then as a sales trainer for Merrill Lynch where he trained over 20,000 new and experienced advisors and eventually became the Manager of Professional Development for the firm.
Since 1990 Drozdeck has trained an additional 30,000-plus financial advisors, and has written numerous books on sales, management, and best practices for financial professionals. He is a regular speaker at industry conferences and has numerous articles published in a number of financial journals. In addition, he is a regular contributor to Senior Consultant, Broker Dealer Journal, and Koaches Korner magazines.
Drozdeck is the co-founder and director of KoachesKorner.com and TheProgressCenter.com as well as a principal in three other companies specializing in helping financial advisors be more productive. He regularly works with financial professionals as a coach to help them reach business developmental goals faster, while providing outstanding client service.
The Savvy Investor’s Guide ... is published by Financial Forum Publishing and Communications, a leader in book publishing for financial professionals. The book is available for purchase at www.ffbookstore.com, Amazon and other online bookstores.