What Does Your Financial Advisor Need To Ask You?

An average investor might find it challenging to navigate the investment landscape and make optimal portfolio decisions. Which is why it is always better to engage with a financial advisor who can handhold you through the investment process and help you create a robust, long-term portfolio strategy. In order to do this in the best possible manner, financial advisors need to cultivate a deep understanding of the clients’ needs and fears. This goes beyond just merely scratching the surface. Here are four questions that an advisor must ask the client.

Question 1: “Please tell me a little more about yourself”

You can make your client fill as many forms as possible to know him/her better. However, this sort of open-ended questions can be more revealing than any questionnaire. It gives the client an opportunity to articulate the most important elements in their lives and helps the advisor to get to know the client at a much deeper level.

Question 2: "How do you think that can I help you?"

This will give your clients an opportunity to reflect upon their needs and identify specific goals. It is also an ideal time for you to explain how you can add value to their financial management process and meet their requirements. When you know how to help them so that you can create a targeted plan that is focused on helping your clients achieve their goals.

Question 3: "Are you currently accomplishing your goals?"

This question will help you better understand the lay of the land and manage your clients’ expectations moving forward. It will also help you get a better perspective of your clients’ concerns and what they perceive as “meeting their goals”. A client’s expectations often go beyond simple portfolio management. They want you to educate them, guide them and sometimes become a trusted confidante. As an advisor, you can manage to have a successful relationship with your clients only if you know what their expectations are. This will also give you an opportunity to inform your client about the services you offer and help them create a set of expectations from you. 

Question 4: “How would you like to take this relationship forward?"

The client is always in the driver’s seat while the advisor is always sitting next to the client. Thus, the way forward always needs to be determined by the client. The advisor is the one who determines the best path once the client has decided the destination.