The Most Important Attribute Your Advisor Can Have

Three weeks ago, several people forwarded me the New York Times op-ed “Consider Firing Your Male Broker,” written by Blair duQuesnay. With a title like that, it’s hard not to click on the link.After reading the article, I did a little digging and discovered that The New York Times chose the provocative title for the piece, not the author herself.While the newspaper was probably trying to attract eyeballs by intentionally setting a gender-war type tone, I think it may have skewed the underlying message of the article. The title speaks to individual investors: “If your financial advisor is male, you should consider firing him because of the following reasons.” But the article itself is directed towards financial advisory firms and the dearth of female advisors in the field.The author presents research showing that women often make better investors than men. She cites multiple studies in which, over the course of several years, female investors earned higher returns than male investors. In explaining these findings, researchers asserted that male investors are more likely to be overconfident, to engage in riskier investments, and to pick investments based on the “thrill” of investing than female investors.Ms. duQuesnay also provides anecdotal evidence from her own experience, relating her clients’ stories of previous male advisors who were unavailable, unresponsive, looking out for their own interests rather than those of their clients, or condescending mansplainers.I think it’s because of this anecdotal section of the article that the Times chose a title aimed at individual investors. After all, most of the Times’ readers are presumably individuals with retirement accounts.However, the author’s real message was directed towards the decision makers at large advisory firms in regards to the shortage of women in financial advisory roles. Fewer than 20% of financial advisors in the U.S. are female, and Ms. duQuesnay writes that financial advisory firms should modify their hiring practices to rectify this imbalance.To her broader point about the gender imbalance in financial advising and the path forward for hiring more female advisors, I agree wholeheartedly. Women must be given equal opportunities to pursue careers in wealth management, and the studies presented in this article show that women are good investors.However, my strongest reaction was to the passage recounting her clients’ horror stories about their previous financial advisors. And this is where I have a minor bone to pick with the newspaper over the title of the article.Anyone who has a financial advisor who is unavailable, condescending, recommending investments that pay the advisor a high commission, or choosing investments that are riskier than the client is comfortable with should consider changing advisors, regardless of the advisor’s gender. As the author herself points out, “neither sex is immune to shoddy behavior.”Clear communication, respect, and trust are the absolute bedrock of the relationship between a client and an advisor. Anyone interviewing prospective advisors should make those the attributes they are looking for.