Questions Great Financial Advisors Ask

Presentations, personality and products are not enough to become great financial advisors today. Investor's do not need a financial advisor to know products, get market information, and make transactions. In a digital age, what investors want – and the service which successful financial advisors provide – is expertise and ability to identify financial goals & dreams and then help clients achieve them.

But to do so, financial advisors need to ask questions. Frankly speaking, long-term success for self and your clients, is more about the questions you ask and not the sales-pitch you make or presentations you give. Advisors are more likely to swell their assets under advice when they ask the right questions, listen to the answers and measure their own success based on the success of their clients. Such advisors are likely create clients for life who will refer you to others. Ask right questions and get closer to greatness...

Every advisor needs to find his/her own right set questions to ask clients, depending on his own style, experience, skills & confidence. In this piece, we share a list of questions which advisors can consider adding to their conversations. Note that we have chosen to list a wide range of questions instead of talking in deep only about a few so that you get a broad idea on what questions can be asked depending on the situation.

The basic questions...

These questions are ones which are pretty obvious to be asked when engaging with clients and during decision making process. Some of these questions will help set the boundaries for your engagement with the client.

• What do you want to know about me?

• What do you expect from me?

• Do you understand my role and my services as an advisor?

• How would you like me to interact with you and the mode of communication?

• Does this make sense to you?

• Do you have any concerns or questions on the recommendations /plans I made?

The data questions...

These are questions which are factual in nature asked with the objective of collecting and validating information and data from the client.

• Questions on family background

• Questions on client's financial and tax status

• Questions on client's financial objectives, goals & dreams

• Questions for information considered required for making plans

• Do you want to add anything?

• Is there anything more that I should be knowing?

• Are any any assumptions you are making?

The probing questions:

The smart, inquisitive and probing questions which will encourage the clients to talk more and thus reveal more about themselves to you.

• How would you like to see yourself?

• Do you know what you should do?

• What worries or concerns you?

• Who makes the decisions – only you or is someone else involved?

• How do you make investment decisions?

• How are you past investment decisions doing for you?

• What has been your most successful investment decision?

• Which investment decision do you regret the most?

• What does money and wealth mean to you?

• Given a chance, what would you like to change in your financial situation /history?

The feedback loop:

Taking feedback is an art and it is most likely that advisors, instead of asking clear questions, would be relying on client behaviour to guess their levels of satisfaction. Well asking straight questions is a good way to clear ambiguity and get the right feedback quickly.

• Are you satisfied with the results?

• Are you pleased with my services?

• How do you believe I am adding value to your financial health?

• Are there any areas in which you expect more from me?

Questions which you don't need to ask...

There are questions which clients may not have the right answers and frankly, it is the job of the advisor to find answers to these obvious questions. As an advisor, you should refrain from asking these questions.

• What is your risk profile /risk tolerance level?

• What is your preferred asset allocation?

• How much returns will you expect?

• Which asset /product is better for you?

• How much you need to save?

Conclusion:

We have all heard of the 80-20 rule. Well the 80-20 rule for financial advisors is to listen to clients at least 80% of the time and talk only 20% of the time. The easiest way to do so is to ask questions and let clients answer them. James Nathan Miller, an author, once said “Questions are the breath of life for a conversation”. Asking good questions is perhaps the first step to greatness for advisors.

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