Richard Dragotta of Paramus, N.J.-based LPL Financial says that one of the keys to developing a great advisor-client relationship is by developing an overall financial plan that will weather any storm.
He believes being a security licensed advisor gives him an advantage over advisors who choose to bypass the security route. Earlier this year, he was involved in the great security license debate where he and another advisor went toe-to-toe on whether or not a securities license is a necessity.
At the time, Dragotta sounded off on the topic, saying that “As part of the financial planning process and philosophy, whether there’s a specific rule or not, if you truly are a consultant, all of the things you do with a client need to be focused on suitability,” says Dragotta, who holds more than a half dozen licenses.
“I make sure I have some very specific conversations during the process – we talk about their investment experience, their time horizon, their liquidity, their risk tolerances and their overall financial situation. A lot of it is just servicing the very basics of FINRA Rule 405: Know your client.“
Watch Dragotta in this video exclusive where he talks about building a strong overall financial plan for your clients.