You may have the skills, and even the time to manage your own finances, but is that what you really want to be doing?  

Elite and professional athletes have coaches.  These athletes have the knowledge and skills to train and play on their own; however, coaches give them unbiased feedback, encourage them to do more, notice their strengths and areas for improvement, refine strategies and typically have specialized knowledge and training.

First, you need to decide if you want to work with an advisor, do it on your own, or perhaps a combination of the two.

You will be sharing extremely personal details about your financial situation, dreams and goals – so it’s important to work with someone you trust and feel extremely comfortable with.

Here are 10 questions and considerations when you are interviewing potential advisors:

1. Do you feel that this person listens to you and understands what’s important to you? Do you feel connected?

2. Does the advisor have experience in working with clients like you?  A PGA golf coach is not a good fit for helping a football player.

3. What type of education, accreditations and licenses does the advisor have? What is their experience?

4. Does the advisor work as part of a team or on his or her own? If the advisor doesn’t work with a team, what happens if he or she leaves the business or is out of town when you need help?

5. How is the advisor compensated?  Does he or she earn more when you do well, or is compensation based on transactions?

6. Are they independent or do they work for a firm which may limit what they can offer.

7. What type of independent third-party recognitions or awards has he or she received?

8. Does the advisor have the time to provide you with the attention you need and deserve?

9. What resources do they have? For example, access to a Trust Company, lines of credit or a mortgage?

Finally –

10. How can they improve and simplify your life?

Finding the right advisor is a process that can take time; however, once you get it right, the partnership can be for life -so it’s worth your time and effort to interview several potential advisors or teams.

You will be sharing extremely personal details about your financial situation, dreams and goals with your advisor, so it is important to work with one you trust and feel extremely comfortable with. The key is working with a team that knows what’s important to you and has the technical skills and knowledge to implement a plan based on that. In coaching, in life and with investing, experience matters.

While other firms focus on investments and markets, The advisors at Carver Financial focus on you and your vision. We will help you define the goals that are important to you, implement a plan and then review your progress and adjust your plan as needed. This is a lifelong process, not a one-time event.

Feel free to reach out to our team to discuss your situation or whenever we can answer questions.  We look forward to meeting and learning about your personal vision. 

There is neither a cost nor any obligation.   Even if we are not a good fit for you, we can usually refer you to someone who is.

As with most areas of our lives, the financial services industry is moving toward automation and away from human interaction. In a race to improve operational efficiency, financial services firms are embracing concepts like “intelligent automation,” “robotic process automation” (RPA) and “strategic automation investments.”

Automating processes and using models can make good business sense in some ways; however, it does not provide the bespoke experience we believe our clients should have.

Technology Should Enhance, Not Replace, Our Relationships

Technology is certainly a powerful tool in any business when we harness it to improve accuracy, keep track of clients’ information and streamline processes. Robo-advisors use sophisticated algorithms to calculate potential returns on investment, for example.

However, too often firms implement technology in ways that lower the quality of service they provide to their clients. Building personal relationships with clients has always been the foundation of the service we provide. That will never change, no matter how sophisticated technology becomes.

The key is to use technology to enhance our relationships, not to replace them.

According to Wired, a monthly magazine specializing in the way technology changes our lives. We must be “thinking conversation first, technology second…” Wired authors envision a world in which companies “create a human/hybrid intelligence.”

For a 2022 Vanguard Group report, researchers surveyed households with at least $100,000 in investable assets that used human advisors, robo-advisors or both. They found that clients of human advisors were more satisfied with the overall service they receive compared to clients of robo-advisors. Also, these clients perceived their human advisors to offer more value in three specific dimensions: portfolio value (i.e., optimal portfolio construction and client risk-taking), financial value (i.e., attainment of financial goals) and emotional value (i.e., financial confidence).

Like the authors of the Wired article, the authors of the Vanguard study also stressed that financial advisors can leverage technology to improve some processes, while some aspects of engaging with clients should remain in the realm of a traditional, non-automated relationship.

For example, the highest-ranked functions for which clients preferred human advisors included feeling understood, having a connection/relationship and having advisors work in their best interests and be empathetic to the client’s needs. In contrast, the areas for which clients preferred digital tools included simplifying their portfolios, diversifying their investments, managing capital gains and taxes effectively, and preventing details from being overlooked.

Only 4 percent of clients of human advisors said they would switch to a robo-advisor if they had to leave their current advisor.

At Carver Financial Services, we are dedicated to creating a more personalized experience while many other firms seem to be moving in the other direction.

We are also seeing a prevalence of firms and advisors using investment models for their clients, rather than designing custom solutions.

In many cases, models use automated questionnaires to determine clients’ basic levels of risk tolerance and broad goals. These models can serve as a starting point, but they should not replace critically important human interaction.

Models and robo-advisors can crunch numbers, but they cannot replace the valuable intuition, compassion and empathy you will receive while working with an experienced advisor regarding your individual situation. Your advisor’s experience, education and knowledge will always surpass that of automation when guiding you within the context of your unique circumstances regarding income tax, outside investments, fears and concerns, upcoming life transitions, and personal beliefs and values.

Randy Carver, CRPC^®, CDFA^®, is the president and founder of Carver Financial Services, Inc., and is also a registered principal with Raymond James Financial Services, Inc. Randy has more than 32 years of experience in the financial services business. Carver Financial Services, Inc. was established in 1990 and is one of the largest independent financial services offices in the country, managing $2.2 billion in assets for clients globally, as of December 2021. Randy and his team work with individuals who are in financial transition as a result of divorce, retirement or the sale of a business. You may reach Randy at randy.carver@raymondjames.com.

The information contained in this post does not purport to be a complete description of the securities, markets or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Any opinions are those of Randy Carver and not necessarily those of RJFS or Raymond James. Expressions of opinion are as of this date and are subject to change without notice.

Returns are based on the S&P 500 Total Return Index, an unmanaged, capitalization-weighted index that measures the performance of 500 large capitalization domestic stocks representing all major industries. Indices do not include fees or operating expenses and are not available for actual investment. The hypothetical performance calculations are shown for illustrative purposes only and are not meant to be representative of actual results while investing over the time periods shown. The hypothetical performance calculations are shown gross of fees. If fees were included, returns would be lower.

Hypothetical performance returns reflect the reinvestment of all dividends. The hypothetical performance results have certain inherent limitations. Unlike an actual performance record, they do not reflect actual trading, liquidity constraints, fees and other costs.

Also, because the trades have not actually been executed, the results may have under- or overcompensated for the impact of certain market factors such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. Returns will fluctuate and an investment upon redemption may be worth more or less than its original value. Past performance is not indicative of future returns. An individual cannot invest directly in an index.