This article was originally published in Barron's.

The number of people dissatisfied with their financial advisors may be higher than you think, and it isn’t due to poor investment performance.

A recent YCharts survey found that 75% of advisory clients either switched advisors or considered doing so in 2023. The primary satisfaction driver, cited by 56%, was “a deep understanding of me and my goals,” outranking portfolio performance. Over 75% said increased frequency and personalized communication would boost their confidence and influence their decision to stay.

As the founder of a service that matches people to fee-only advisors, I hear from both sides. The most successful advisor-client relationships embrace a holistic approach, focusing on meaningful conversations that encompass the client’s entire financial life. 

These holistic conversations are essential from the moment a potential client meets an advisor and throughout their relationship.

How people can find the right advisor for them.

Successful advisor relationships are collaborations built on mutual understanding. The advisor has to understand two important things about a client and their finances: the financial fears that keep them up at night, and their lifestyle aspirations.  

The vetting process should involve more than one substantive get-to-know-you call or meeting, where the advisor demonstrates deep and active listening skills. 

Clients probably appreciate that their financial advisors are generous with their knowledge, allowing clients to gain valuable insights whether discussing a Roth conversion strategy or concerns about a father-in-law’s dementia and potential need for financial support.

Traditional advisor-client conversations often involved perfunctory routine quarterly meetings primarily centered on reviewing statements and performance. End of meeting. Questions, if any, were an afterthought. 

A typical old-school conversation might start with a client asking, “I have $200K to invest, what should I do with it?” It can be a risky question to ask because the advisor isn’t taking into consideration any of the important contexts of the client’s life, like taxes, debt, real estate, lifestyle, family needs, spending, etc. Brokers love this type of question because it allows them simply to make an investment recommendation, not spend time advising. 

In contrast, holistic conversations are dynamic and responsive. Interactions can sometimes be emotional, especially when someone’s life has just changed. Clients meet with their advisors at least four times a year, but life happens in between those meetings, and unexpected changes are often the real reason they reach out because they need to talk through their deepest concerns. 

For example, if a client is thinking about selling the family home to downsize, he or she shouldn’t wait to contact the advisor. It’s a big decision, and they’ll likely benefit by talking through the pros and cons with the advisor right now, not next quarter. A qualified advisor won’t only stress-test the financial implications, but also explore how relocating will impact the client’s lifestyle.

The power of good questions.

For both clients and advisors, the quality of the answers they receive wholly depends on asking good questions. The questions must include what worries or inspires the clients’ visions of their lifestyles.

George Kinder, author and life-planning pioneer, teaches financial advisors to place the lives clients desire at the center of their financial plans. 

He suggests advisors ask clients: “Imagine that you’re financially secure. You have all the money you need now and in the future. How would you live your life? What would you change, if anything? Describe a life that is complete and richly yours.”

Clients should also feel empowered to ask an advisor what they need, such as, “What do you want to know about me to help develop a plan and provide the best advice?” 

In meetings where the advisor truly knows the client, the first 30 minutes are spent reviewing strategy, evaluating cash flows, and making adjustments, and the next hour and a half is spent on how it all relates to the client’s life right now. A great conversation helps a potential client see whether there’s real value in hiring an advisor. Additional examples of the types of questions advisors and clients can ask, include: 

Client to advisor:

• Please describe your typical clients, what kinds of problems you are helping them solve, and how? 
• How often are you communicating with your clients? What can I expect during these meetings, and what happens in between scheduled meetings if I have something I need from you?
• How are these clients paying you? What kinds of fee arrangements can you offer me? (Assets-under-management fee, retainer, hourly).

Advisor to client:

• Paint me a picture of the problems you want to solve now and in the future?
• What do you want your financial assets to accomplish for you and your family going forward?
• What areas of your life are currently causing you most concern or making you (or your spouse) anxious?

Know your role in the conversation

A collaboration requires two-way communication, and financial planning requires context. Each partner in a couple should feel free to ask their own questions.

Life is unpredictable, and when change brings worry or opportunity, it’s a cue for clients to reach out to their advisors, understand the implications, and move forward confidently.