Since 2020, the world has changed how we work and interact with one another. It has particularly impacted how investors meet with their financial advisers. From my experience, most investors preferred to meet with their adviser in-person pre-pandemic. Post-pandemic, I have seen a huge shift, and most investors now prefer to meet with their adviser on Zoom because of its convenience. Clients can now meet with their adviser from anywhere in the world or the convenience of their kitchen.
This presents a considerable advantage for investors — you now have an endless supply of advisers at your fingertips and are not limited to those in your local area. In my previous article How to Find a Financial Adviser, I emphasized that the most important thing in an adviser relationship is their ability to listen to their clients and understand their clients’ “why” beyond the usual numbers and risk tolerances. This still stands and is incredibly important.
In this day and age, you don’t need to work with a local adviser, especially if you are comfortable using technology. If you choose a non-local adviser, focus on their credentials — a Certified Financial Planner™ (CFP®) is a must, along with their experience and your chemistry with them. It’s also very important to ask for references, as most advisers will have a list of clients willing to speak to prospective clients on their behalf. I would rely less on website reviews, as most firms have not implemented them yet due to compliance restrictions.
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Read on for three critical aspects to consider when working with an adviser remotely.
1. Figure out the role technology plays.
One important element to consider is how comfortable you are using technology. Being advised remotely will require a lot more technology, as you can’t pop into an office to sign a form or drop off a document — everything will need to be sent securely, as email should not be used to send confidential documents. Firms set up to do business virtually should be able to do everything over the internet — signing forms, sharing trust documents through a secure portal, sending timely reports, etc.
With that being said, sometimes people prefer to be in person for a stronger sense of connection to an individual. If this is the case for you, then working with an adviser remotely is probably not for you.
2. Set expectations for communication.
When hiring an adviser, it’s important to establish clear communication guidelines. This is especially important when working with a remote adviser. You’ll want to know how many formal meetings you can expect a year, how many times you can call them with questions and their preferred communication method. As some advisory firms are not permitted to use text messaging due to compliance restrictions, you will want to confirm that with your adviser upfront. If you are a huge texter, but your adviser can’t text you back, that could create some friction in the relationship.
Another important element is knowing who else you will be working with. Understand the team structure within the firm to know who your primary contact will be and how it aligns with your financial goals. If you are working with just one adviser and they go on vacation or call out sick, who else can you speak with?
Last but not least, inquire about other forms of communication the firm may or may not offer, such as webinars, in-person events, newsletters, social media, etc. There is a wealth of information out there, so you want to ensure you are maximizing your relationship and getting relevant information for your personal situation.
3. Build a relationship.
If you choose to work with a remote adviser, building a lasting relationship with them is important. They should care about how you think about things, why you think about things and the deeper meaning behind your short- and longer-term goals.
Since this is such an intimate relationship, it’s important for you to understand what the adviser is thinking, too. I would pepper them with questions and get to know how they think about things, their process, why they do their work and what they do when they are not working.
Make sure to meet with them via Zoom with your camera on so they can get to know you, too.
Last but not least, ask what kinds of clients they prefer working with — their answer may be enlightening and help you identify if you are the right client for them!
Technology, communication style and building a relationship are all key factors in determining whether having a remote adviser makes sense for your situation. Years ago, having adviser/client relationships exist completely remotely was less common, but it’s become a lot more normal.
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