Whenever I meet a new prospective client for the first time, after the initial pleasantries, I usually ask two questions.
The first is some variation of “How did we get here?” – in other words, what was the trigger for the client getting in touch in the first place. Usually, the trigger is a transition of some kind, maybe a new baby, or a looming redundancy and they’re wondering whether they can, in fact, retire; or maybe an inheritance.
The next question is something along the lines of “What do you want to get out of this process?” In other words, what are the clients’ objectives for seeking advice. This often takes some teasing out of them as their first response is too closely linked to the first answer – “I’ve received an inheritance and I want to know what to do with it.”
A good adviser will try to help you articulate your goals not just for the advice process, but for life, because a good adviser knows that money should only ever by a means to an end, never an end in itself.
Here’s a good way to tell a good adviser from someone who just wants to sell you an investment ‘solution’:
If they dismiss you when you start talking about your goals and aspirations, or worse, if they quickly try to steer the conversation back to their solutions, i.e. products, then run away and don’t look back. Don’t you be the one to start talking about long-term goals – let the adviser do it. If they don’t ever broach the subject, that tells you all you need to know.
In the hope that you find a good adviser and do have this conversation, you need to have answers ready, so take the time to think, before you get into the meeting, about what you would really like your future to be like.
Doesn’t have to be detailed to the nth degree, just a sense of what you’d really like out of life and why you’re seeking advice now to that end. Write this stuff down and chew it over beforehand – it’ll make for a more productive conversation.
Have Your Questions Ready
You know when you go for a job interview and they ask, usually at the end, “Do you have any questions for us?” It’s important to have some questions ready, especially if the adviser hasn’t answered these themselves.
Here are some good questions to ask:
- How does the process work – can you walk me through what meetings we’ll have and what form they will take?
- How do you get paid and when?
- What are the timescales for this process? Do you have response times? What responses might you expect from me?
- How does the ongoing relationship work, after the initial advice session (if there is one)?
- Is it a requirement that you manage any money you advise me on, or can I take your advice and DIY? (Not a deal breaker, this one – as such advisers are VERY rare indeed)
- Will you take me through a cashflow modelling process? (This isn’t always absolutely necessary, but can always be useful, especially as you approach retirement)
- Have you worked with clients in a similar position to me?
This is not an exhaustive list, but should give you a sense of the kinds of questions you could and should be asking.
