All Things Financial Planning Blog

To enjoy a successful financial advisory relationship, both the client and financial planner have expectations and styles that need to fit like a glove. This article is intended to help you identify your expectations, so you can match with an advisory style most beneficial to you.

 Advisors often profile prospective clients as “delegators,” “validators” or “do-it-yourselfers.”

Delegators want little involvement in their financial affairs due to a lack of time or interest. Delegators are happy to give up control and authorize their financial advisor to implement strategies on their behalf, either with or without prior approval. Delegators may work with brokers or high-touch fee-only financial advisors who charge based on assets under management. Delegators with significant wealth may also use family office services for bill-paying and personal financial bookkeeping. 

Validators often have a vision of their financial future and are simultaneously uncertain exactly how to reach their destination. Their financial acumen may range from very limited to experienced, yet they often feel confident in their decision-making ability. They also recognize that, as a professional with wide experience, a financial planner can supplement the valuator’s own knowledge and understanding. Validators are willing to pay reasonable fees for services. They want both advice and the ability to maintain control over their finances. Validators are eager to learn and participate in the planning process. They typically chose fee-only (no product sales) financial advisors who may or may not charge a percentage for assets under management. 

Do-it-yourselfers (“DIYers”) are highly involved with the details of their personal finances. They regularly comb through the financial news and publications. They may even read prospectuses! DIYers often feel they can captain their own financial ship better than anyone else. They keep good records, often track their spending and prepare their own financial forecasts. A DIYer foregoes the following benefits of financial planning services: uncovering “blind spots,” objective feedback and advice free of emotion, access to cutting edge knowledge through continuing professional education, and experience based on working with many clients. Financial advisors recognize that DIYers are not willing to accept help at any fee. DIYers may interview many financial professionals, yet ultimately decide to rely on themselves.

As well, financial planners and advisors come with a variety of educational backgrounds, certifications, philosophies and fee arrangements. You can find descriptions of many types of advisors.  In addition, there are checklists for interviewing potential financial planners and a summary of how planners charge.

CFP® practitioners and members of the Financial Planning Association (FPA) are distinguished from other financial advisors by adhering to a required fiduciary standard. In essence, this means the advisor must always place the client’s interest first and fully disclose any potential conflict of interest. This is higher bar than the suitability standard required for brokers and other sales representatives. Their recommendations need only be suitable for you as a client. 

If you’re looking for the right financial planner, be sure to check out PlannerSearch!

Constance Stone, CFP®
Co-Founder, President
Stepping Stone Financial, Inc.
Chagrin Falls, OH