Guest Column: Financial adviser-client relationships start with trust

Financial planners are trained to be extensively knowledgeable about the financial world, and their access to resources can help strengthen and manage personal portfolios so individuals can reach their financial goals more quickly.

Whether saving for retirement or a child's college fund, a financial planner can help analyze a person's current financial situation in relation to various markets and assist in creating reasonable financial goals.

Adviser qualifications

Because financial advisers are an important resource, it is important to know what qualities to look for when choosing one.

Trust is central to a successful financial-planning relationship. Someone who is looking for a financial planner should bring a list of questions to the initial meeting with a potential adviser. It is important to know candidates' experience and qualifications.

It's also important to know the adviser's financial strategy and approach. Clients need to feel comfortable with the strategy and be sure that the planner's views on investing are not too risky or too cautious for them.

Also, find out whether there is a net worth requirement to work with a potential adviser. Some financial associates cater to a specific income bracket, which may influence their investment strategies.

There also needs to be a discussion regarding service cost and payment method. Planners should have this information readily available and be open to providing it upon request.

Launching the relationship

Once an adviser is selected, clients should familiarize themselves with the financial planning process. Granted, each adviser has an individual strategy and working pattern, but the general steps should be similar.

In establishing an adviser-client relationship, both the client and the financial planner should understand their responsibilities in the planning process. It is important that the adviser be informed of how involved in the process the individual expects to be so expectations are set for an appropriate partnership. Likewise, clients should inform the planner if they don't want to be extensively involved in the course of investing.

The financial adviser should ask about the individual's current financial situation so that financial goals regarding time frame and risk tolerance are mutually defined.

After the financial situation is established, the adviser should evaluate this information to determine what must be done in order to meet the desired financial goals.

The adviser should offer a written recommendation that specifically addresses the goals expressed during this meeting. The financial plan should be thoroughly discussed with the individual so that all points of the plan are understood. If the proposed plan meets expectations, it should be implemented, and the client should be aware of who will monitor the portfolio's progress toward goals, as well as the point of contact for discussing and making alterations to the plan.

Continued expectations

Ongoing monitoring of the portfolio is imperative. The adviser and client need to set a calendar for future meetings so both parties are comfortable that the necessary discussions are occurring regarding goal achievement and results. The adviser will suggest certain strategies based upon the client's investment policy statement, but it is up to the client to make the final decision or to grant approval.

When the selection process is handled correctly, it is likely that an eager adviser whose investment style fits personal preferences will be identified. An expert can help discern financial situations and goals so that portfolios can be specifically formatted according to clients' needs and achieve the maximum performance possible.

Matt Connell, CFP, is a vice president and financial adviser for UMB Bank's investment and wealth management division in Springfield. He may be contacted at matthew.connell@umb.com.