When a much-feared diagnosis of a terminal illness is made, good advisors immediately begin working with the client's estate-planning attorney to ensure estate documents and assets are titled in the correct way so the family is prepared financially. Action in this type of situation requires a high degree of emotional intelligence on the part of the advisor, who needs to know to ask the right questions at the right time and also needs to understand when clients just want someone to listen.
Stop and think about it: Why do you need a financial advisor? You need one because you want him or her to manage your money. But at the end of the day, a relationship with a trusted advisor alleviates the emotional turmoil of lying in bed at night worrying about not having enough money or life insurance benefits to meet the needs of your family — and also makes your spouse feel better about these matters.
Good advice based on a deep personal connection will always be in demand because it takes into account each client's emotional needs, which helps them face potentially difficult situations calmly and rationally. The "robo-advisors" can't forge human connections or understand an investor's emotional makeup.
Technology may change, but people don't, and that's why good advice will always be essential.
— By Bill Crager, president of Envestnet and co-author of "The Essential Advisor: Building Value in the Investor-Advisor Relationship"