The wealth management industry is flawed. It is fixated on selling investment products with bloated hidden fees rather than providing sound advice. The common financial advisor role — as a salesperson providing access to financial products and trade execution — remains the status quo, yet technological innovation has commoditized these tasks.
The consumer will find great value in choosing an advisor with aligned interests, who provides personalized guidance according to the consumer’s individual goals. If done well, it is like hiring an elite household CFO who looks at your financial life holistically, incorporating risk management, budgeting, taxation, estate planning, and investments.
Yet finding the right financial advisor – who listens more than talks, does not sell products, truly takes the time to help you unearth your vision of your future – is not only difficult, but time-consuming. The process can be overwhelming; vetting potential candidates for competency and aligned incentives is not easy, especially in an industry where just about anyone can call themselves an “advisor.”