Choosing An Advisor:
Finding an advisor is a stressful undertaking for most people. Inertia often takes over as people fear making a mistake. However, a change in life circumstance often stirs people to take action. Divorce, a death in the family, receiving an inheritance, retirement, being downsized or moving across the country can be the catalyst that causes people to undertake the task of finding someone to advise them about their financial life.

Similar to other professions, when an advisor has years of experience and credentials, they generally are skilled in their chosen field. However, also similar to other professions, there are variations in methods of delivery, communication styles, practice structures, service and so on.

For most of us, our money style is formed as we grow up. Were you wealthy or was it difficult making ends meet? Were you a depression baby? Were your folks depression babies? Was your mother a spendthrift or a coupon clipper? Was money an issue, or not something you thought about – it was just there? What went on in our families’ households affects how we view money as adults and what money means to each of us. Many couples bring different money styles to their relationship and this can create stress in a marriage.

Choosing an advisor who listens to you, understands your attitudes towards money and communicates effectively with you is critical. Do they speak your language? Do you feel they are being condescending in explaining things to you? Do you get answers to the questions you ask?

How do you wish to be communicated with and how often? Do you like email updates? Are you a phone person? Do you want someone to explain your statement to you? Are you more interested in the day to day movements of the market?

These are all important variables and should be considered when assessing whether an advisor is right for you. At Chapin Hill Advisors, we do not have a “package” we provide to clients. We understand how unique each of our client’s situations is and pride ourselves on building a solid financial roadmap customized to your needs.

Referrals are valuable and are often the source of most advisors’ new clients. However, considering the characteristics (e.g. personality, situation) of the person who is referring you to the advisor is important before making any decisions. Too often, we have seen a recent widow turn to her bridge partner’s husband since he works on “Wall Street”. He may be an analyst or an IT professional and not have the foggiest idea of how to structure a portfolio or find an advisor. Yet, because he works on “Wall Street”, the widow turns to him as a financial professional.

So, when seeking referrals for an advisor from your friends and social circle ask yourself the following questions:-
Are they in a similar life situation?
Do you both hold similar values?
Do they communicate in a style similar to your style?
Do they have experience working directly with an advisor?
Do you have any idea if they have a similar risk tolerance?

The advisor who may be right for your neighbor may not necessarily be right for you and your present situation - but it is a good place to start. Try to find savvy friends who are most similar to you in terms of values and communication style to get the best fit in a new advisor.

References from advisors are often recommended but they can be of little use. Money management is a very private issue for many people. High net-worth individuals can be hesitant to have strangers call them to discuss their relationship with their advisor. Any professional who is asked for a reference will only give you their best clients who are happy with them. Therefore, references may not be the most valuable source in discerning whether a particular advisor meets your needs.

Ultimately, it is best to rely on your own instincts and feelings. Have several meetings with a potential advisor. Be prepared with a list of questions. Be clear about what you are seeking and the communication you wish to receive.

When meeting with Chapin Hill, we will begin with recommending a financial plan, which allows the client to get to know us and develop a relationship before committing assets to management. The financial planning process is a low risk method that enables the client to become comfortable with our style and determine if we are the right fit. We can also make recommendations with more certainty if we know the entire scope of the client’s life situation.

This process then translates into a stronger relationship with more trust and confidence regarding expectations, communication and execution that provides a solid foundation for future financial success and independence.