7. Poor Communication

Some financial advisors do not communicate clearly or how clients prefer.

For example, some wealth managers favor head-scratching financial industry jargon. Has your manager talked about downside protection, risk mitigation, or Sharpe ratios? They may sound smart, but if you don’t understand them, they are not clear communicators.

Your wealth manager should also understand your communication preferences. Do you prefer in-person meetings, email, text, or video? Whatever your choice, your manager should be in tune with you.

In the 1967 movie Cool Hand Luke, Paul Newman’s keeper tells him, “What we’ve got here…is failure to communicate.” Communication, knowledge, and responsiveness are critical to providing sound financial advice and to maintaining solid relationships. When you don’t clearly understand your financial plan, or are not updated, you can make unwise decisions.