Dignitas Briefing Paper Assesing Your Financial Advisor

7/31/2019 Dignitas Briefing Paper Assesing Your Financial Advisor

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DIGNITAS

A Dignitas Brieng Paper

FIVE KEY QUESTIONS TO

ASSESSYOURFINANCIAL ADVISORA BENCHMARKING TOOL

FOR DETERMINING WHEN TO

UPGRADE YOUR ADVISOR


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Assessing your nancialadvisor ensures your nancial

plan stays on track.

Share Dignitas Brieng Paper Assess Your Financial AdvisoBy Nicholas Delgado

The recent nancial crisis taught everyone that not all nancial advisors are created equal. Whilesome advisors helped their clients successfully manage the downturn, others consistentlyunderperformed in terms of investment advice and service.

If you have never taken the time to review your nancial advisor or are not sure how, Dignitas hascreated this convenient scorecard for assessing your advisors performance.

Dignitas Service Offering

WEALTH COACHING: Dignitas wealth coaching providesexecutives and entrepreneurs a unique platform to concentrateon developing the habits and maximizing the skills to help youmeet your nancial goals.

PERSONAL BENCHMARKING: Benchmarking allows familiesto understand where their current position is in relation to aparticular goal.

BALANCE SHEET ADVISORY:Dignitas serves as a duciaryto your family and provides tested and untarnished nancialadvice, as the rm does not participate in any third partycommissions or fees.

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About the Author:Nicholas Delgado

Share Dignitas Brieng Paper

Assessing Your Financial

AdvisorBy Nicholas Delgado

Nicholas Delgado founded Dignitas to provide clientswith personalized, high quality and independentadvice and solutions that allow them to simplify theirlives. With 15+ years of experience in the nancialservices and wealth advisory industry, Nick hasbecome a go-to advisor for start-up/high growth

entrepreneurs, seasoned executives and individualsentering their second life. Follow Nick on Twitter

@DignitasCWO

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Assess Your Financial AdvisoBy Nicholas Delgado
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Many people sign their client agreement and then forget how much they are charged on an annuabasis. Reviewing your annual fees is an important exercise in determining how well your nanciaadvisor is performing in terms of their service offering relative to their fee structure.

Do you know how much you are paying your advisor in fees?

1) Yes, my advisors fee structure is very clear and transparent.(1 point)

2) Maybe, I think I know but I am not sure.(2 points)

3) No, I have no clue how much I pay my advisor.(3 points)

1. Fees: do you know how mucyou are paying your advisor?


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Every investment portfolio is different and performance can be very difcult for the average investorto evaluate. Nonetheless, it should be a topic that your advisor discusses with you at least once ayear and they should provide you with regular performance reports throughout the year.

Do you know how your investment portfolio has performed over the past 12 months?

1) Yes, my advisor keeps me up to date on my portfolios performance.(1 point)

2) Ive seen performance reports but I am not sure what they mean.(2 points)

3) No, I have no idea how my investment portfolio is performing.(3 points)

2. Performance: is your advisoregularly discussing your

portfolios performance?


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Many people select their nancial advisor after several introductory meetings and conducting athorough review of the individual and their rm. But once they become a client, some seldomhear from their advisors on a regular basis and receive erratic communication from their advisorsrm.

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.(1 point)

2) I hear from my advisor occasionally, but not as often as I would like.(2 points)

3) My advisor barely knows my name and I only hear from him when he wants to sell me a newproduct.

(3 points)

3. Relationship: how often doyou speak with your advisor?


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While managing your investment portfolio is a signicant aspect of the services that your advisorprovides you, it should not be the only service they provide. Its also important to discuss keynancial planning topics such as estate planning, tax planning or risk management. In additionsome advisors also provide value-add services such as life management, cash ow budgetingand nancial education.

Does your advisor assist you with various nancial and life planning issues throughout the year?

1) Yes, my advisor helps me make major nancial decisions by providing me consultativeadvice and educational resources.(1 point)

2) My advisor has offered these services in the past but I have never followed-up on theiroffer.(2 points)

3) No, my advisor only provides me with investment advice as it relates to my investmentportfolio.(3 points)

4. Value-add: does youradvisor provide more than justinvestment advice?


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During the 2008-09 nancial crisis investors learned the hard way that many nancial servicecompanies put their best interests before their clients. Whether its the commissions hidden inthe ne print of the products your advisor might be selling or other incentives they may receivefor recommending a product, understanding your advisors potential conicts of interest isimportant.

Does your advisor actively discuss or disclose potential conicts of interest they may havewhen recommending a product?

1) My advisor is a fee-only advisor and does not receive any commissions or incentives fromthe products that he recommends.(1 point)

2) When my advisor recommends a product he actively discloses if a third party iscompensating him.(2 points)

3) My advisor works at a broker-dealer and can recommend products that pay him acommission that I may be unaware of.(3 points)

5. Independence: is your advisooffering you conict free advice


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After answering all of the questions, review the scorecard below to help determine the strengthand quality of your current relationship with your nancial advisor.

If your advisor scored between 5-8 points: Congratulations, you likely have a strong andrewarding relationship with your nancial advisor.

If your advisor scored between 9-11 points: Consider getting a second opinion from adifferent advisor or having a conversation with your current advisor on items such as fees and

your communication expectations. Dignitas provides individuals with a free Second OpinionAssessment on their investment portfolios.

If your advisor scored between 12-15 points: Its time for you to consider replacing your advisor.Start rst by interviewing new advisors and discussing with them your personal and nancialgoals as well as items such as fees, communication expectations, and their investment andplanning services. Dignitas provides individuals with a complimentary consultation on their

nancial plan.

SCORECARD

Answers /Questions 1 2 3 4 5 Total

1 Point

2 Points

3 Points

Scorecard: How did you scoreyour nancial advisor?


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Dignitas is a multi-family ofce and wealth management rm. We provide clients withindependent and objective advice and solutions beyond the traditional investmentmanagement and nancial planning model. Our full-service life management platformorchestrates a collection of business and personal services to support our clients whole lifeneeds.

To continue the conversation, please contact:

Nicholas Delgado, CRPC, CIMA, CFP

Principal | Chief Wealth [email protected]

Twitter: @dignitascwo312.651.6130

Dignitas

111 E. Wacker Drive

Suite 2606Chicago, IL 60601www.mydignitas.com

Dignitas is an Investment Advisor Registered with the State of Illinois.

Dignitas: An IndependentInvestment Advisor Committed

to Keeping Your Life Optimized


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Dignitas Briefing Paper Assesing Your Financial Advisor