I’m lucky enough to have a number of new clients who, having been disappointed by their financial planners in the past, have decided to work with us. 

On a number of occasions I’ve been massively disappointed with the service these clients have received previously.

To be clear, there are plenty of amazing financial planners and advisers out there. However, like law, accountancy or any profession or service, the quality of financial advice across an entire industry is mixed. At Cervello we’re certainly not perfect, but I hope the desire to improve and continue to improve has meant we’ve got a good feel of what a good financial planner or adviser looks like.

The challenge we face when we’re picking someone to work with is we suffer with a blind spot. We only know what we know!

The things you should look out for when picking a great adviser are known to many in the financial planning and advice profession, but not those of us who are looking for advice.

So, that’s why in this article I want to explain the things which should warn you that you might not be working for a financial planner (let’s call these ‘Red Flags’) and the attributes to confirm that your adviser is doing a brilliant job (we’ll call these ‘Green Flags’)

So (Drumroll), without further ado, let’s showcase the 4 red flags and 4 green flags you should think about when deciding if you’re working with the right financial planner…Starting with,

Red Flag #1 – They talk a lot.

I think the natural expectation for your financial planner or adviser is to talk a lot. Surely they need to do this to explain loads of things right?

The reality is that, in my experience, a great financial planner should ‘seek to understand before they need to be understood’.

This means a great financial planner should ask intelligent questions and listen. They should spend a decent amount of time understanding you and your hopes, dreams and aspirations. Which brings me on to the first positive thing to look out for when thinking about working with a financial planner.

A note to existing clients on this one – I know I talk a lot…but I promise you I’m trying to be more curious and listen more! We’re all a work in progress right?!

Green Flag #1 – They want to understand what you want to achieve.

Ultimately money is a tool for you to help you live the life you want. 

So, a big question for any financial planner to ask is…

What does the life you want look like?

It’s interesting. 

Often when I start working with new clients they know what they’ve got in various investments. They know what their pension balances are and how much is in their kids ISA’s but they haven’t answered one fundemental question

How much is enough?

Ultimately money is a tool to live the life you want and working with a good (or great!) financial planner will help you work out what ‘enough’ looks like for you. However that brings me onto our next ‘red flag’…

Red Flag #2 – They are primarily interested in talking about financial products.

Often, when a new client comes to see us, the first question they ask is about pensions.

“Chris” they say “Can you tell me whether my pensions and investments are doing Ok?”

You see we’ve been acclimated for decades, in the UK particularly, to see a financial adviser about your financial products.

That’s what financial advisers and planners do right? They talk about financial products?

My own perspective is that if your financial planner or adviser is only talking about financial products you could do so much better. I know that good and great financial planners use technology to support you. Which brings me onto my next ‘green flag’…

Green Flag #2 – They use software to help you build a clear financial strategy.

About 10 years ago, I was recommended to review a piece of technology that revolutionised the way we support our clients. 

At the time I was certainly a more product focussed financial planner but had really started thinking about how we better support our clients. That’s when I spoke to another adviser I trusted, who had been using this technology for some time.

In our world, there’s technology which enables us to map out someone’s financial life. The best way to describe it is as Google maps for your money. It allows the professional you’re working with to effectively map out, stress test your plan and tell you whether you’d reach the point of having ‘enough’ or not. 

My experience using this technology allows me to provide far more clarity in an impartial way so that my clients have the knowledge to live the lives they want. My next point talks about the importance of impartiality…

Red Flag #3 – They’re not independent

So, let’s make one thing clear. Not all financial advisers are independent. Some financial advisers run businesses (and are employed) by businesses where the only thing they’re restricted to what they’re able to recommend.

Now, that doesn’t make an adviser who is restricted a bad adviser, as clearly they might tick a lot of the other boxes making them a pretty decent adviser.

However, when I decided to work independently, I always wanted to make sure I could sit on the same time of the table as my client, advising them impartially and independently about the next steps to take. Whilst restricted advisers who are linked to a product provider say they can do this, I’m not convinced the incentives for these advisers always mean they do. However it does depend on the particular adviser you work with, and you should consider this point with the other elements I talk about in this article.

However, one thing you should consider as a tick in the right box is the following point…

Green Flag #3 – They are chartered or certified

Whilst professional qualifications aren’t everything when it comes to choosing your financial planner, they should be seriously considered.

Having someone who is really technically competent is important, particularly if there’s loads of moving parts in your financial plan, but actually selecting either a chartered or certified financial planner is about more than that. It’s also about the effort that Adviser has made to become as technically qualified as they can be. 

You see, I see my chartered status as a way not only to show technical expertise, but also illustrate that I care about being the best technical adviser I can be for one reason. To better support my clients.

I know one question I’d ask any adviser I choose to work with is…

“How do you focus on your own improvement and self development?”

It’s a great question to ask, and one which will help you decide if that adviser is right for you…

However our Fourth ‘red flag’ is one you should also seriously consider when thinking about the right adviser for you…

Red Flag #4 – They only get in touch very infrequently, if at all

One of the things which annoys me more than anything else is when I hear about a client who has worked with a financial planner who they don’t hear from.

In fact, we had a recent new client who hadn’t had any form of communication from their adviser for over 2 and half years until they contacted him and asked about his fees and what he was doing for it.

To be clear, a professional financial planner will charge you. You should be getting value from this relationship, and as a minimum understand what you should expect should be a minimum. At Cervello we transparently put all of our costs and what a client can expect from every single penny on This Page. 

So, to be clear, your financial planner should be in touch relatively regularly, ensuring the financial plan they’re supporting you with remains on track. Anything less than at least annually and I believe they’re not adding value or validating their fees.

The relationship you have with your financial planner is important as it should be a relationship of trust. However if you don’t hear from your financial adviser at least annually you haven’t got a relationship worth paying for.

Which brings me onto my last point…

Green Flat #4 – You like them and trust them

Like any professional relationship, the relationship with your financial planner should be based on both getting on and trusting them to have your best interests at heart.

If you feel patronised, or disrespected, or ignored you should find a new financial planner. 

I’m really lucky that I get to work with clients I like, respect and trust and I always want this relationship to be mutual. 

Often we don’t switch because we feel it’s going to be too much effort, but when it comes to finding someone to help you achieve your financial plan both your money and the time you spend with your financial planner is too valuable not to find someone you both like and trust. So, I hope that helps you decide whether you’re working with the right financial planner and if we can help in any way feel free to get in touch!