Good financial advisor / bad financial advisor
Freely inspired by Ben Horowitz's famous article "good product manager / bad product manager".
Good financial advisors know their clients deeply and act with curiosity and expertise. They understand that each client's situation is unique and requires a tailored approach. A good financial advisor is the architect of their clients' financial future. They take full responsibility for understanding their objectives, risk tolerance, and overall financial situation before making any recommendations.
Bad financial advisors treat all their clients the same way and rush to recommend products without understanding their situation. They use a standardized questionnaire that they fill out mechanically for mere compliance, seeing themselves as salespeople rather than trusted advisors.
Good financial advisors spend most of their time listening and asking relevant questions. They want to understand not only their clients' financial situation but also their aspirations and family dynamics. Building genuine trust requires empathy and a sincere interest in the client's story. Bad financial advisors dominate conversations with technical jargon, thinking it makes them appear sophisticated.
Good financial advisors provide a clear and comprehensive diagnosis before any recommendation. They take the time to explain their analysis in simple terms. Bad financial advisors jump straight to product recommendations that align with their quarterly sales targets.
Good financial advisors present multiple solutions with transparent advantages and disadvantages. They help clients understand the trade-offs and make informed decisions. Bad financial advisors push complex products they barely understand, like certain structured products, because they offer the highest commissions.
Good financial advisors are transparent about their fee structure and clearly explain the value they bring. They choose the compensation model that aligns with their clients' interests. Bad financial advisors hide fees in complex structures and avoid conversations about compensation.
Good financial advisors focus on long-term relationships and sustainable results. They regularly review plans and are proactive in communication. Bad financial advisors look for quick gains and only reconnect to push new products.
Good financial advisors know their limits and don't hesitate to call on specialists when necessary. They build a network of tax and estate planning experts to better serve their clients. Bad financial advisors pretend to know everything and give ill-informed advice.
Good financial advisors invest in their knowledge and stay current with market trends and tax laws. Bad financial advisors do the minimum required and rely on outdated knowledge.
Good financial advisors use technology and AI to improve their service. They employ advanced platforms to provide better analysis while dedicating the time saved to client relationships. Bad financial advisors resist adopting new tools, clinging to outdated methods.
Good financial advisors measure their success by their clients' progress toward their goals. Bad financial advisors measure it solely by their revenue and sales.
Why we created Affluent
The contrast between good and bad financial advisors isn't just theoretical for us – it's what led us to reimagine what wealth management should look like today.
We believe wealth management needs to be different:
- It should combine the power of technology with human expertise, not force you to choose between the two
- It should offer complete transparency, not hide behind complex jargon and obscure fee structures
- It should empower you to make informed decisions about your wealth, not make you dependent on an advisor
- It should use technology to provide personalized service, evolving with your wealth, not get bogged down in outdated practices from the last century
That's why we created Affluent. Our platform helps you understand your complete financial situation, make informed decisions about your wealth, and achieve your long-term financial goals with confidence.