WealthManagement recently reported on a Morningstar study examining what investors value most in their financial advisors.

The research, conducted by Morningstar's behavioral team, compiled findings from multiple studies over the years, including surveys from 2018 and 2024. According to WealthManagement, the surveys revealed that the ability to help clients reach personal financial goals consistently topped the list, followed by maximizing returns and advisors possessing relevant skills and knowledge.

Morningstar's research finds that clients value financial planning tailored to their specific life goals rather than generic financial thresholds. Advisors should communicate how they create personalized plans to avoid clients feeling like they are receiving boilerplate advice. This approach fosters trust and ensures clients understand the thought process behind their financial strategies.

Additionally, Morningstar concludes that behavioral coaching remains a challenging yet crucial aspect of the advisor-client relationship. Advisors can help clients navigate risk tolerance and market volatility by providing tools and processes that guide decision-making. For example, suggesting trading rules or offering concrete examples from other clients can help individuals avoid impulsive reactions to market changes.

Finally, Morningstar finds that setting realistic expectations, particularly regarding returns, is another essential component of effective financial advising. Advisors should establish these expectations early in the relationship, and if a client remains overly focused on returns, it may indicate that the advisor-client fit is not ideal.

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