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Going Cold Turkey on Bad Advisor Habits

May 1, 2013

Bad habits are easy for financial advisors to fall into and not always easy to kick. In RIA Central, Nicole Coulter calls out some lapses advisors should be aware of and makes suggestions for overcoming them, starting with “relying on the gurus.”

Even experts with sound advice may be toxic for individual clients, and some outside money managers push strategies for their own reasons. It’s up to the advisor to do due diligence, Coulter writes, urging advisors to “play detective” and not trust information “from sources that are trying to sell investment products.”

Not contacting clients often enough — at least once a month — is another bad habit, but it’s easier to overcome. Coulter recommends hosting a regular coffee klatch for clients, in addition to setting up a formal schedule for e-mails, memos, newsletters and review meetings for all clients, making note of their individual preferences for receiving information.

Finally, Coulter suggests that advisors need to kick the habit of relying on current contacts instead of continuing to build their business by meeting new people. One suggestion is to allot time every month to attending community events, with a goal of meeting four new people at each one.

By Elizabeth Jensen
  • To read the RIA Central article cited in this story, click here.