There are probably as many perceptions of what a financial Advisor is, or should be, as there are people who hire them. Let me take a little time and a few pixels to comment about this.

For those who value an Advisor for their ability to deliver positive investment returns year after year, irrespective of the state of markets, you are probably very disappointed this year.

And for those who look for an Advisor to have expertise as a consistently accurate forecaster, you probably have serious doubts by now.

But I would like to expand the expectations of consumers of financial advice beyond just market dependant performance. The value of a good Advisor is not dependent on the state of markets. Indeed, their value can be even more evident when markets are down and fear is running high.

The best of these Advisors play multiple and nuanced roles with their clients, depending on the stage of the relationship, and these clients are amply rewarded for the manifest skills their Advisors bring to the table.

While some may quibble over the exact characterization, broadly these functions break down to seven important roles that evolve over time:

1. The expert: Now, more than ever, investors need Advisors who can provide client-centered expertise in assessing the state of their finances and developing risk-aware strategies to help you meet your goals.
2. The independent voice: The global financial turmoil of the past two years has demonstrated the value of an independent and objective voice in a world full of product pushers and salespeople. A real independent Advisor is not a product pusher or salesperson.
3. The listener: The emotions triggered by financial upheaval are real. A good Advisor will listen to client’s fears, ferret out the issues driving those feelings and provide practical long-term solutions.
4. The teacher: Getting beyond the fear-and-flight phase often is a matter of teaching about risk and return, the power of diversification, the importance of asset allocation and the virtue of discipline. Done generically, this is the primary goal of Capital Markets U.com magazine.
5. The architect: Once these lessons are understood, the Advisor can become an architect, helping you to build a long-term wealth management strategy that caters to your own risk appetites and lifetime goals. This goes far beyond stock picking expertise or market timing expertise (both of which Capital Markets U.com considers dubious at best).
6. The coach: Even when the strategy is in place, doubts and fears will inevitably arise in the your mind. An excellent Advisor at this point becomes a coach, reinforcing first principles and keeping you on track.
7. The guardian: Beyond these early experiences is a long-term role for the excellent Advisor as a kind of lighthouse keeper or guardian, scanning the horizon for issues that may affect you and keeping you informed. This  role is only possible if you have had a relationship with your Advisor for some time. An Advisor filling this role has to know you and your family very well.

These are the seven faces of advice and, when properly applied, become testimony to the fact that the value of a good financial Advisor extends well beyond the writing of a simple financial plan or simply being limited to investment management.

You may first seek out an Advisor purely because of their role as an expert. But once you are satisfied with their expertise, you may find their main value may be their role as an independent voice.

Knowing your expert Advisor is truly independent — and not a product salesperson — leads to your ability to trust your Advisor as a listener or sounding board, as someone to whom you can unburden your greatest fears.

Once your relationship with your Advisor has developed, the listener can become the teacher, the architect, the coach and ultimately the guardian. These are all extremely valuable roles in their own right and none of these are dependent on the investment markets.

However you characterize these various roles, a good financial Advisor ultimately is defined by the patient building of a long-term relationship founded on the values of trust and independence.

I hope this has helped to expand your expectations of your Advisor. And, if you didn’t realize all this was possible in one Advisor, you can now begin to look for a truly excellent Advisor.

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