Relationships take work, regardless of whether they are personal or professional. It is important to understand your relationship with your investment professional and ways you, and he or she, can ensure that your relationship is on track for success.
Once you have established a relationship with your investment professional, it is important to understand the various modes of communication available. Every investor is different and has unique goals, needs and expectation of communication with his or her investment representative and each individual responds differently to the various modes of communication. Therefore, it is important to explain to your investment professional exactly what you are looking for as far as communication is concerned.
Equally important to the mode of communication selected is the frequency of communication. Some investors are comfortable with hearing from their investment representative a few times a year, while other investors require at least monthly updates. Your personal preference, the amount you have invested, the types of investments you have, and the investment strategies utilize may all influence how frequently your financial advisor communicates with you. Following are a couple of examples:
- You may simply be more comfortable hearing from your investment professional on a regular, redetermined basis, such as once a month, regardless of what is happening with the markets or your account. If this is the case, you can inform your professional of your specific wishes, and he or she will typically be happy to accommodate you.
- If you have a substantial amount invested, your financial advisor may need to communicate with you on a more frequent basis than he or she would if you had a smaller account that required little discussion or evaluation.
- If you are utilizing a buy and hold strategy or investing in long term investments that need little maintenance, you may not need to communicate with your professional as frequently as an investor whose portfolio needs to be closely monitored and possibly altered.
As you talk to your investment professional about how you would like to communicate and how often, it is also important to discuss exactly what you expect from him or her.