Think of Your Advisor as Your Financial Coach

by | Sep 28, 2021 | Financial Wellness

Managing your finances independently is like preparing for the big game without a playbook or a coach to lead you to victory. However, many Americans find themselves doing just that. By taking the independent approach and not working with a financial advisor, you could be losing money to taxes, interest, or simply uninformed decisions.

Because many people do not understand the role of a financial advisor, they attempt to manage their financial future on their own. And in a stable economy, this strategy can be somewhat effective for a while. However, in a recent study researchers found that since the start of the COVID-19 pandemic, there has been an increasing number of individuals who realized they need help managing their finances. This has led to a surge of individuals and couples who are reaching out to financial advisors for the first time.

By understanding the role of an advisor, you can better understand what they do and how they help you grow wealth. In short, financial advisors share several characteristics with great coaches. So, we have broken down 5 important traits, found commonly in great coaches, that effective financial advisors should possess to be successful:

1. Your financial advisor should be a mentor.

In this sense, a mentor is someone experienced in the field of finance who is helping you, the mentee, make decisions regarding your financial future. Mentors are commonly thought of as coaches: they educate, guide, support, and constructively criticize their players or mentees, leading them to victory.

You will find that an effective financial advisor listens to your interests and goals, provides insight as you plan for your future, and provides actionable feedback. They should also provide caution when your financial situation flashes warning signs and help you develop a plan to get things back on track.

2. Your financial advisor should be a teacher.

To ensure their clients have the best opportunity for success, financial advisors – like coaches – must be strong communicators. In addition, they should be able to teach while also listening to your concerns. The fact is every client is different, with varying levels of financial experience and knowledge. To understand where you need education, your advisor must first understand your current situation and what you already know.

For many people, financial advisors are their primary educators on the fundamentals of financial planning, and they are the first to provide feedback when navigating the challenges of saving and investing. Advisors, like good coaches and teachers, will actively listen to your questions, concerns, and interests.

3. Your Financial Advisor Should Be Respectful

Respect on the playing field is a two-way street. We often think of players being respectful of the coach, but successful coaches are also respectful of their players. To earn respect, coaches must be knowledgeable, set expectations, treat players equally, and communicate effectively. Coaches will take responsibility for shortcomings or weaknesses among the team, and they avoid placing blame on others. Effective advisors share these principles.

The most successful financial advisors are not only knowledgeable about money management and financial planning, but they also invest time and energy into their clients – to understand their individualized needs and goals. Your advisor should respect you as an individual and that will help you develop the needed respect for them.

4. Your Financial Advisor Should Be Honest

One way that financial advisors earn respect is through their being honest with clients. Like coaching, an advisor is the person who should be able to tell you what you don’t always want to hear. So, they will point out your strengths – where you are on track with spending and saving. However, they will also point out weaknesses – wasteful spending and missed opportunities that can prohibit you from reaching your financial dream. Because of their honesty, you can be better positioned to achieve financial success.

However, the role of honesty goes beyond that of the advisor. When developing a financial plan, your advisor is best able to prepare you for victory when they know all the details of your financial life. This means that you, in essence, must strip financially naked for them. You must show them the good, the bad, and the ugly. Failing to do so can leave proverbial skeletons in the closet that can lead to busted plays and missed financial goals.

5. Your Financial Advisor Should Be a Strategic Planner

Most successful organizations use strategic planning as the backbone for their decision-making processes. This allows them to align the team around common goals, direct resources, and position the team for success. But this strategy shouldn’t be limited to the corporate world. When your financial advisor is a skilled strategic planner, they can leverage your savings and income to build a strong playbook for financial success.

You can identify a good strategic planner by their willingness to work with you in establishing common goals, propose steps to achieve those goals, and review your progress along the way. They will consider short-term and long-term objectives, ranging from plans to take a family vacation to ensuring that your retirement account(s) will support your lifestyle during your twilight years. They will also consider the unexpected roadblocks that could derail your plan and create strategies to avoid those as you navigate your financial playbook.

Connect with the Team at Brookstone Wealth Management

At Brookstone Wealth Management, our business is built around the concepts of coaching, teaching, and mentoring our clients toward financial success. The first step in that process is developing your Financial Fingerprint™ – a financial plan that is quick to assemble, easy to understand, and simple to modify as circumstances change.

In about an hour, we can create a plan that checks your current financial health and gets you on track to meeting your savings goals. Because our focus is on coaching, teaching and mentoring, you will have confidence in your decisions and your future. Contact us today to get started.