Is it really important to have a financial advisor?
This question is often asked by people, especially those who have had negative experiences with brokers who were less-than-honest in their dealings with clients. A good financial advisor should not be driven by commissions and incentives from investment firms – the most important focus of a financial advisor’s work should be ensuring the client’s financial success in good times and bad.
I recently received an email from a client who had gone through some difficulties regarding medical expenses. This letter of thanks was touching, and reminded the entire Northwood team that our focus on the financial needs of our clients is the only way to do business. Here is an extract from the email:
Nico, as our Financial Advisor, has been such an asset. Not only has he always been on hand to give us good advice but has fought tirelessly through many battles on our behalf to finalise claim payments as we went through some tough medical problems over the past two years.
As our Financial Advisor, Nico has his finger on the pulse of all our investments, moving them as soon as a better opportunity arises, always urging us to a more secure financial footing, far greater than anything we would have done by ourselves. Not being in a position to know all the current changes and trends in the financial world it truly is a comfort to know that we can rely on Nico completely to have our best interests at heart.
Reading these words should convince anyone that a financial advisor’s main responsibility is to the client. This responsibility goes beyond the typical approach of many brokers, which is to sell the client an insurance or investment policy without following up on the performance of the investment.
Although nobody can predict the stock market, at Northwood we take an active interest in our clients’ investments and will take action when necessary to make sure that under-performing investments are replaced with better ones. By taking this approach, we believe that our clients will enjoy greater wealth creation and come closer to achieving their financial goals.
A financial advisor should do more than advise clients on insurance and investments. In the case of this client, I took action to ensure that their medical insurance claims were paid out and offered advice during a difficult period of the client’s life – this is all part of putting our clients first, and that will continue to be our approach in the future.