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A Dignitas Briefing Paper
FIVE KEY QUESTIONS TO
ASSESS YOUR FINANCIAL ADVISOR
A BENCHMARKING TOOL FOR DETERMINING WHEN TO UPGRADE YOUR ADVISOR
PERSONAL BENCHMARKING: Benchmarking allows families to understand where their current position is in relation to a particular goal. as the firm does not participate in any third party commissions or fees. others consistently underperformed in terms of investment advice and service. BALANCE SHEET ADVISORY: Dignitas serves as a fiduciary to your family and provides tested and untarnished financial advice. While some advisors helped their clients successfully manage the downturn. If you have never taken the time to review your financial advisor or are not sure how. Request a Consultation Video Overview Share Dignitas’ Briefing Paper Assess Your Financial Advisor By Nicholas Delgado 2 . Dignitas has created this convenient scorecard for assessing your advisor’s performance. Dignitas Service Offering WEALTH COACHING: Dignitas wealth coaching provides executives and entrepreneurs a unique platform to concentrate on developing the habits and maximizing the skills to help you meet your financial goals.Assessing your financial advisor ensures your financial plan stays on track. The recent financial crisis taught everyone that not all financial advisors are created equal.
seasoned executives and individuals entering their second life. Nick has become a go-to advisor for start-up/high growth entrepreneurs. With 15+ years of experience in the financial services and wealth advisory industry. high quality and independent advice and solutions that allow them to simplify their lives.About the Author: Nicholas Delgado Assessing Your Financial Advisor By Nicholas Delgado Nicholas Delgado founded Dignitas to provide clients with personalized. Follow Nick on Twitter @DignitasCWO Share Dignitas’ Briefing Paper Assess Your Financial Advisor By Nicholas Delgado 3 .
Fees: do you know how much you are paying your advisor? Many people sign their client agreement and then forget how much they are charged on an annual basis. (3 points) Share Dignitas’ Briefing Paper Assess Your Financial Advisor By Nicholas Delgado 4 . I think I know but I am not sure. Reviewing your annual fees is an important exercise in determining how well your financial advisor is performing in terms of their service offering relative to their fee structure. my advisor’s fee structure is very clear and transparent. (2 points) 3) No.1. (1 point) 2) Maybe. I have no clue how much I pay my advisor. Do you know how much you are paying your advisor in fees? 1) Yes.
my advisor keeps me up to date on my portfolio’s performance. Nonetheless. it should be a topic that your advisor discusses with you at least once a year and they should provide you with regular performance reports throughout the year. (1 point) 2) I’ve seen performance reports but I am not sure what they mean. (3 points) Share Dignitas’ Briefing Paper Assess Your Financial Advisor By Nicholas Delgado 5 . I have no idea how my investment portfolio is performing. Do you know how your investment portfolio has performed over the past 12 months? 1) Yes.2. (2 points) 3) No. Performance: is your advisor regularly discussing your portfolio’s performance? Every investment portfolio is different and performance can be very difficult for the average investor to evaluate.
(1 point) 2) I hear from my advisor occasionally. some seldom hear from their advisors on a regular basis and receive erratic communication from their advisor’s firm. Relationship: how often do you speak with your advisor? Many people select their financial advisor after several introductory meetings and conducting a thorough review of the individual and their firm. (3 points) Share Dignitas’ Briefing Paper Assess Your Financial Advisor By Nicholas Delgado 6 . How frequently do you hear from your advisor? 1) My advisor meets with me at least once a quarter and I receive regular informational materials and reports throughout the year. (2 points) 3) My advisor barely knows my name and I only hear from him when he wants to sell me a new product.3. But once they become a client. but not as often as I would like.
it should not be the only service they provide. (2 points) 3) No.4. cash flow budgeting and financial education. my advisor helps me make major financial decisions by providing me consultative advice and educational resources. Does your advisor assist you with various financial and life planning issues throughout the year? 1) Yes. It’s also important to discuss key financial planning topics such as estate planning. some advisors also provide value-add services such as life management. my advisor only provides me with investment advice as it relates to my investment portfolio. In addition. (3 points) Share Dignitas’ Briefing Paper Assess Your Financial Advisor By Nicholas Delgado 7 . (1 point) 2) My advisor has offered these services in the past but I have never followed-up on their offer. Value-add: does your advisor provide more than just investment advice? While managing your investment portfolio is a significant aspect of the services that your advisor provides you. tax planning or risk management.
Whether it’s the commissions hidden in the fine print of the products your advisor might be selling or other incentives they may receive for recommending a product.5. understanding your advisors potential conflicts of interest is important. (1 point) 2) When my advisor recommends a product he actively discloses if a third party is compensating him. Independence: is your advisor offering you conflict free advice? During the 2008-09 financial crisis investors learned the hard way that many financial service companies put their best interests before their clients. (2 points) 3) My advisor works at a broker-dealer and can recommend products that pay him a commission that I may be unaware of. (3 points) Share Dignitas’ Briefing Paper Assess Your Financial Advisor By Nicholas Delgado 8 . Does your advisor actively discuss or disclose potential conflicts of interest they may have when recommending a product? 1) My advisor is a fee-only advisor and does not receive any commissions or incentives from the products that he recommends.
SCORECARD Answers /Questions 1 Point 2 Points 3 Points 1 2 3 4 5 Total Share Dignitas’ Briefing Paper Assess Your Financial Advisor By Nicholas Delgado 9 . Dignitas provides individuals with a complimentary consultation on their financial plan. you likely have a strong and rewarding relationship with your financial advisor. and their investment and planning services. review the scorecard below to help determine the strength and quality of your current relationship with your financial advisor. Dignitas provides individuals with a free Second Opinion Assessment on their investment portfolios. If your advisor scored between 5-8 points: Congratulations. communication expectations. Start first by interviewing new advisors and discussing with them your personal and financial goals as well as items such as fees.Scorecard: How did you score your financial advisor? After answering all of the questions. If your advisor scored between 12-15 points: It’s time for you to consider replacing your advisor. If your advisor scored between 9-11 points: Consider getting a second opinion from a different advisor or having a conversation with your current advisor on items such as fees and your communication expectations.
CIMA®. Our full-service life management platform orchestrates a collection of business and personal services to support our clients’ whole life needs. Dignitas is a multi-family office and wealth management firm. To continue the conversation. Share Dignitas’ Briefing Paper Assess Your Financial Advisor By Nicholas Delgado 10 .mydignitas.Dignitas: An Independent Investment Advisor Committed to Keeping Your Life Optimized.com Dignitas is an Investment Advisor Registered with the State of Illinois. CFP® Principal | Chief Wealth Officer nick@mydignitas. CRPC. We provide clients with independent and objective advice and solutions beyond the traditional investment management and financial planning model.651.6130 Dignitas 111 E. please contact: Nicholas Delgado.com Twitter: @dignitascwo 312. IL 60601 www. Wacker Drive Suite 2606 Chicago.
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