Don’t Be Scared to Talk To An Investment Advisor.

By Wendy Barasch and Beata Kirr

As you transition into retirement, you may be reevaluating your relationship with money—and deciding you need professional advice. Or perhaps you’ve “inherited” your current financial advisor and are considering a change. Either way, engaging a financial partner who understands you is one of the best things you can do for yourself. But finding that person can be overwhelming.

Here are some key questions to ensure you’re paired with the optimal advisor for you:

1. What kind of services does the advisor offer? Can they be customized for you?

Everyone has different aspirations for using their wealth (e.g., creating a charitable legacy, funding a new venture, or solving complex planning issues). Does the advisor begin with your personal priorities—instead of a one-size-fits-all approach, marketed to everyone?

2. What kind of resources can be marshaled on your behalf?

Small boutiques are renowned for their personal service, but often lack scale and expertise. Bigger doesn’t always mean better, but bigger does lend a global perspective, and allows the advisor to tap other specialists more readily on your behalf.

3. Will your advisor closely monitor your positions, and take your tax profile into account?

The market can move quickly. Will your advisor keep close track of how your accounts are affected?And taxes can play a significant role, too. Will your advisor ensure taxes are addressed with every trade in your portfolio, not just at year-end?

4. What will your advisor charge?

Fees affect your return, and come in many forms. Some advisors offer all-inclusive fees with no additional costs for advisory services, custody, or commissions. Others include tax management, risk management, planning, and analysis. A choice between fixed fees based on your portfolio’s value—or performance-based fees aligned with returns—is ideal.

5. Will the advisor educate you on your investments?

Top firms offer mobile access to your account, plus online research, blogs, and podcasts on capital markets and investment themes. Do you want opportunities to hear from investment professionals, tax and estate planning experts, and other like-minded clients, too? Choose someone who will clarify the complexities of investing, not confuse you. If an advisor makes you feel inadequate or invisible, find a different one.

6. Are you confident that you will have the relationship you want with your advisor?

Different clients want different things from an advisor, and open and frequent communication is essential. But so is listening. Make sure your advisor will be willing to customize his or her approach based on your preferences—whether phone, e-mail, or face-to-face—and at a frequency that makes you feel both appreciated and understood.

7. Does this person feel like a good fit for you?

Asking yourself this general “catch-all” helps gauge your overall impression. Make sure that whomever you work with, he or she puts your needs first. Before asking questions, consider the ideal answers you’d like to hear. That way you’ll be able to assess who is suitable while quickly identifying what matters most.

8. The legal issues—Will the firm serve as a fiduciary? 

Make sure your advisor will be a fiduciary serving your interests. A fiduciary is legally obligated to make clients’ needs a top priority and deliver the best investment solutions to address them. Fiduciaries must also disclose actual or potential conflicts of interest—and employ reasonable measures to mitigate them.

Wendy Barasch is a Principal and Financial Advisor in Bernstein’s New York office. She has advised many personal and corporate clients regarding complex financial questions, including retirement planning. 
Beata Kirr is a National Managing Director in the Chicago office, and Head of Private Client Core Asset Strategies at Bernstein. She is a member of the Private Client Investment Policy Group, which builds and manages client’s strategic asset allocation advice. Beata is also the host of Women & Wealth, a part of the Bernstein Insights podcast series. For additional Bernstein thought leadership for women investors, click here.