How Clients View Trusted Advisors versus Expert’s Recommendations - Part 1
You hear the term Trusted Advisor utilized a lot by financial advisors, but have you given thought to what the title means and what distinguishes a Trusted Advisor from a Financial Advisor, a Financial Planner, a “Wealth Manager,” or a Subject Matter Expert? I’m going to define Trusted Advisor from the clients’ perspective and will assign attributes to the term which I believe are implied or should be attached to the title.
Contemplate the word Trusted for a moment. Trust is an interesting phenomenon. It is both given and earned. Trust is a gift that is given between one individual onto another, and it grows over time. It is very personal therefore trust applied in this context does not apply to entities such as firms. To say I trust my banking institution, an impersonal entity, speaks to a different concept compared with I trust Susan Jones. The trust one places in another human being elevates the word to a whole different level; trust in another person can, and in our context does, imply much more. To have a Trusted Advisor implies a level of confidence which Bill Bachrach refers to as a “High Trust” relationship. The relationship assumes competence and encourages openness, dependability, closeness and an extraordinarily deep understanding of the situation. We place that level of trust in an individual who we are convinced will always put our interests ahead of their own; a person we can rely upon to “watch our back” and always represent us well even, and especially, when we’re not around.
Trust is fragile, and the very nature of it implies that any presence, or perception, of conflict or even a wavering of our empathy can break the bond of trust in an instant. Trust is given freely and can be taken away without conscious thought if an individual does anything perceived as unworthy of trust. Also, the form of the word “Trusted” implies that trust has been in place in the past and possibly by many who have placed trust in this individual.
Next time we will explore the word "Advisor" as compared to the words "Manager" or "Expert".




