CLIENT RELATIONS
positive , there is no reason to hide an experience .” He argues that “ most of the world ’ s most successful entrepreneurs have had many failures , including bankruptcy . They would probably tell you that they wouldn ’ t have been so successful had they not gone through those failures first .”
As Barse says , “ Life happens ,” whether it ’ s a bankruptcy or a lien on a house . However , he adds , “ if you stand up in front of a group of people and profess the positives of long-term sobriety but then you are a closet alcoholic , I think that you really have to impugn the validity of the source .”
Nor is it true that having a big net worth makes someone a great advisor , Kahler says . “ How did they get that money and how is it invested ?” he asks . He notes that there is a money script that says : If a person has money , they have great financial knowledge . “ Well , that ’ s crazy thinking . What about a celebrity that made great money and died broke ?”
The bottom line , says Kahler , is that if an advisor “ is currently in a mess and headed for disaster , that ’ s the train you don ’ t want to get on as a client . And the question is , how do you find that out ?” Inquiring clients could do research on the advisor , or they could simply ask questions , he says .
In addition to querying advisors about their financial mistakes and asking for references , as Van Dusen suggests , Kahler says clients should also consider asking advisors the following questions to make sure they are a good fit :
• Do you follow the advice that you give your clients ?
• Do you have an emergency fund to
cover six months ’ living expenses ?
• If I ran a credit card report on you , what would it tell me ?
• Do you use the same investment managers you tell me to use ?
• Does your company have a succession and an emergency plan ?
• Do you have an umbrella insurance policy ?
• Do you have a will ?
And while these questions could trigger a lot of emotional reactions , both for the planner and the clients , Kahler says they are appropriate if clients want to determine that advisors are “ walking the walk and talking the talk .”
He adds that he would encourage planners to be proactive in providing some transparency . “ I just think it strengthens the trust of the planner if they can be instantaneously open and answer difficult questions ,” he says .
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NOVEMBER 2023 | FINANCIAL ADVISOR MAGAZINE | 31