The foundation of a successful client-advisor relationship is built on trust, transparency and honesty. While a client may sometimes request unattainable goals, it is up to the advisor to manage their expectations and present alternative opportunities to reach a similar outcome, all while remaining transparent. In every relationship, the advisor should work to build reciprocal trust to attain the best results for the client.

Know the Customer

Understanding who the customer is can eliminate many hurdles that may interrupt the progress of investment strategies. If the client approaches the advisor with an unreasonable short-term goal, the advisor will need to be honest about what might be necessary to achieve those goals. It is also a good idea for the advisor to notify them of the likelihood of falling short and to present alternative routes. This may mean allocating towards a riskier investment with a higher profit potential, guiding the goal to a more realistic level or finding a combination of both options.

Assess Their Goals

Working with a client may present challenges and it is up to the advisor to guide the customer towards an investment strategy most likely to reach those goals. While the client should have a plan, it is the responsibility of an advisor to put the goal in perspective and to draw a clear, realistic strategy to reach it. Working through goals should be a joint effort that considers a variety of variables, such as time horizon, risk tolerance, liquidity needs, etc. It is certainly acceptable for clients to have aggressive goals, and the client should be able to trust the advisor to build a suitable plan to achieve them.

Create a Relationship

A well-functioning relationship between a client and their financial advisor can be a lot like a successful personal relationship.  An advisor will likely inquire about personal details, such as the state of a client’s finances, fees and individual or family concerns. To deeply understand the goal of a client, the advisor may need to ask probing questions, which personalizes the relationship and simultaneously presents the opportunity to build trust. Trust is the centerpiece of the interaction between the client and advisor, and it is constructed through ethical conduct, ongoing communication and expert knowledge. Strong trust is what leads to a healthy client-advisor relationship.

Creating a powerful, successful relationship between a client and their advisor takes effort. The relationship must share a great deal of trust and respect, along with understanding the wants and needs of the client. Oftentimes, there is a significant education curve that needs to be reached, which will benefit both parties. The client will trust the opinions of the advisor because they will understand the logic behind these decisions, and in turn, the advisor will have more flexibility to work in the client’s best interest.  

Building a successful client-advisor relationship is something Icon Alternatives prides itself on, as the client is the most essential aspect of the industry. Working with the advisors at Icon Alternatives can help you reach your financial goals with a tailored, personalized strategy.