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Questions to Ask When Choosing an Investment Advisor for a Trust

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When you’re managing a trust, you want to work with an investment advisor you can count on. But it can be hard to know what the right choice is amidst a sea of options vying for your business. Here are some questions to ask when choosing an investment advisor for a trust, conservatorship, or another fiduciary vehicle. 

Do they understand what you do?

If you are managing a trust for a beneficiary with complex needs, you may benefit from working with a financial advisor who understands what your situation requires – from liquidity needs to long-term care planning, to maximizing public benefits. At True Link Financial Advisors*, for example, we specialize in supporting fiduciaries such as trustees, conservators and guardians, attorneys, nonprofit pooled special needs trusts, family member trustees, and trust companies. Our team brings nationally recognized trust expertise and has spent decades in your shoes as professional fiduciaries and trustees, so we know what your work really entails. 

Can they provide tailored expertise for different types of beneficiaries? 

What a 13-year-old child on the autism spectrum needs is different than what a retired couple in their 70s needs is different than what a 48-year-old contractor who received a workers’ compensation settlement needs. We believe in person-centered planning and work with our clients to analyze  time horizon, spending needs, tax situation, and risk tolerance to tailor an investment portfolio that matches their unique needs. 

How committed are they to fiduciary duty?

Licensed financial advisors are required, like you, to act in the best interests of their clients. But how this commitment is demonstrated can vary from advisor to advisor. At True Link Financial Advisors, our investment decisions are aligned with the tenets of the Uniform Prudent Investor Act and based on responsible stewardship of assets. One way to assess investment advisors’ impartiality is how they earn money, since some advisors receive bonuses when they invest in proprietary products or vehicles.True Link Financial Advisors is committed to being a fee-only advisor, and we do not invest in commission-based vehicles.

What is their approach to diversification? 

Most financial advisors will pitch you on maximizing returns, minimizing costs, and effectively managing risks – which is likely what you want! Their specific investment approach to achieve that will vary, and you want to uncover whether they’re following proven investing principles around diversification and risk management. At True Link Financial Advisors, we believe our clients are best served by investing in low-cost and highly-liquid investment options such as Exchange Traded Funds (ETFs). Diversification via broad market indices (like ETFs) provides a means to potentially reduce volatility within a given portfolio with the goal of producing returns that are representative of the overall market.

Do they charge account minimums? 

Some financial advisors have minimum account size requirements to open an account, or they may charge higher fees if total assets fall below a certain threshold. We believe everyone should have access to our services, so True Link Financial Advisors does not have any account minimum requirements nor do we charge any account minimum fees.

What additional support do they provide?
Some investment advisors are purely focused on managing your investments. For many of their clients, that is enough, but when you’re navigating more complex situations, you may want some additional support. With True Link, our trust administration software is complementary for all investment* clients so that we can help you simplify your processes and save time.

Choosing the right investment advisor is so important; let us know if we can help as you navigate your options. Click here to schedule time to chat with our team.

Investment Management Services are provided through True Link Financial Advisors, LLC, (the “Adviser”) an investment adviser registered with the U.S. Securities and Exchange Commission (“SEC”) and wholly-owned subsidiary of True Link Financial, Inc. (“True Link Financial” and, together with the Adviser, “True Link”)  Registration with the SEC does not imply a certain level of skill or training nor does it constitute an endorsement of the advisory firm by the SEC.  Adviser only provides investment management services upon entering into an Investment Advisory Agreement (IAA) with a client.  With respect to pooled trust clients, upon entering into an IAA, the client is the trust; beneficiaries of the trust are not investment advisory clients of Adviser. Nothing contained on this website should be considered an offer to sell or a solicitation to buy any securities. Non-deposit investment products are not insured or guaranteed by the FDIC or any other government agency, are not obligations of any bank, and are subject to risk,  including loss of principal.

True Link Financial, Inc. provides the trust administration software and record-keeping platform as well as the True Link Visa Prepaid Card and associated software platform.

Looking to learn more about True Link's financial solutions? Reach out directly to our team today.

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