Hiring an advisor is a major life decision that can determine your financial trajectory for years to come. There are many advantages to having an experienced advisor managing your portfolio with the most important being just that, experience! Understanding all the moving parts of the financial markets, applying specific customized strategies to your individual goals, and risk tolerance while maximizing the growth of a portfolio can be overwhelming for anyone who hasn’t spent years practicing it. However, finding an advisor that has been in the industry for a long time is not the only criteria you need to consider:
Is My Advisor A Fiduciary?
A “fiduciary” is an individual that is required to act in the best interest of their client and disclose any conflicts of interest. The most detrimental mistake one can make when hiring an advisor is not hiring a fiduciary. The advisors at Henderson Wealth Management are fiduciaries meaning that every action we take, or do not take, in the management of your portfolio is in your best interest.
For example, if you were car shopping at a Ford dealership, after explaining all the features you want in a vehicle, the dealer will likely recommend the best Ford to fit those desires because it will benefit the dealership. A fiduciary would take your list of desires and recommend the best car regardless of manufacturer, say a Subaru for example since it snows in the northeast. Henderson Wealth Management’s advisors act the same way in the selection of money managers for your portfolio, we choose which ones are best for your bottom line, not ours.
What services does my advisor offer?
It is critically important to research what services advisors offer their clients and should be a main focus while selecting your advisor. While virtually every advisor will invest your money according to your personal goals and risk tolerance there is a laundry list of other services advisors can offer. It is also important to ask if your advisor charges extra fees for those services.
Additional services above and beyond investment advice offered by Henderson Wealth Management include:
- Tax Reduction Planning
- Family Wealth Planning
- Estate Planning
- Client Services (review meetings, regular events (educational & hobby-central), paper shredding, etc.)
- Medicare Consultation
- Continuing Education
Henderson Wealth Management does not charge any additional fees for any of the above-listed services. A full list of our services, which includes a comparison to other advisors you may be considering, is located here.
How Is My Advisor Paid?
How advisors are paid is closely related to the fiduciary responsibility an advisor has to their clients. Some investment products generate commissions for the advisor while some advisors utilize a fee only structure. Products that generate commissions can create conflicts of interest where an advisor may be incentivized to recommend one investment over another. While both of those hypothetical products may achieve the same investment objective for the client, the advisor may get paid more for recommending product A over product B. Advisors that employ a fee-only structure do not have those conflicts of interest because the cost of product A is the same as product B.
Henderson Wealth Management is a fee-only firm which eliminates all incentives towards pitching one product over another. The product that is most appropriate for our client is the one that is found in their portfolio without exception.
Is This the Right Strategy for My Money?
Whether it’s a move from a full-time job to retirement, paying off the balance of a mortgage, a health change or a big trip, financial goals and cash flow will likely change over time. The days of “buy and hold” strategies are fading away in the rearview mirror. If you still have the same investment allocation in your portfolio as day one, or your advisor has infrequently made changes to your portfolio, it may be time to evaluate making a change.
Every meeting at Henderson Wealth Management start with the same three questions; How is your health? How is your cashflow? and Have you had any major life changes? These three questions not only allow us to know what is going on in your life, but also if there are any adjustments that need to be made to your portfolio. For example, say you are planning a trip to Europe that will cost $8,000. If your advisor knows about that trip a few months in advance, we can allocate a portion of your portfolio to generate income that we will not reinvest but will set aside for your trip. That way, even if the market drops by 15% the week before your flight departs, you will not have to worry about a higher withdrawal rate or any scenario where you would have to cancel those plans.
Regardless of what is going on in your life, Henderson Wealth Management is always diligent in making sure your portfolio is optimized for your life. After all, our number one rule is to “Know Our Client.”
Will My Advisor Call Me Back When I Call Him/Her?
Studies in the financial planning industry shows that the number one frustration clients have with their advisor is they do not respond to calls or emails in a timely manner. Clients do not work for their advisors, ADVISORS WORK FOR THEIR CLIENTS! As far as the advisors at Henderson Wealth Management are concerned, if we do not respond to your email or call within one business day, we failed to provide the level of service our clients deserve for choosing to work with us.
How Will I know If My Money Will Last My Entire Lifetime After Retirement?
Advice is the number one focus at Henderson Wealth Management. We are in the business of helping our clients retire and not having to worry about money after their last day on the job. However, it is critically important to us that our clients are always informed on their long-term strategies and planned adjustments along the way. During the first consultation, our clients receive a binder with a customized projection of how their money will grow over time. Incorporated into that forecast are multiple variables that demonstrate what actions are needed to achieve set financial objectives and enjoy the money you worked so hard for. The advisors at Henderson Wealth Management will be the first people to tell you if you aren’t spending enough of your money, as well if you are spending too much.
Does My Advisor Work with People Like Me?
Some advisors are highly specialized and only work with clients that are invested in real estate, for example. Henderson Wealth Management will work with anyone, regardless of profession or financial objectives.
So why Choose Henderson Wealth Management over the other advisors you will meet? When it comes to experience, Kevin Henderson, Tom Henderson and Amy Hawke have been in the financial planning industry a combined 50+ years. We are fiduciaries that are not incentivized to persuade you to do anything that is not in the best interest of you and your financial goals. We offer a wide variety of services that are aimed to grow your portfolio, protect it, allow you to enjoy it, and ultimately pass it on to your beneficiaries. We charge a flat rate no matter how many meetings you need or how many different services are needed in the management of your investments and planning. We strive to educate you on every decision we make so that you are always informed as to how your money is working for you. The bottom line is that we always have one hundred percent of our focus on you and the goals we set together for your portfolio. We have grown Henderson Wealth Management nearly 100% from referrals, not sinking money into marketing, meaning that we get new clients because we exceed expectations.
As a resource in your comparison of advisors, please view our Comparison Sheet. This will help you see what we offer that other advisors do not.