Let’s talk banking horror stories. I’ve heard more than a few from friends who’ve been ignored, manipulated, or flat-out lied to by their financial advisors regarding non recourse loans. The root of these toxic relationships is when banks care more about the products they’re pushing than the human beings who walk through their doors.
Now, imagine the alternative: bankers who are respectful, responsive, and honest. Instead of wasting one more minute feeling frustrated by out-of-touch bankers, wouldn’t you rather build positive relationships with trustworthy firms? It’s time to demand not only competence from your financial advisor, but also simple human kindness.
This might seem easier said than done. After all, trust in the financial services industry is at an all-time low — only 20 percent of consumers consider banks trustworthy. But like any human-to-human interaction, it all comes down to one thing: basic decency.
Respect Is Nonnegotiable With a Non Recourse Loan
If you’re a client of a self directed IRA custodian in search of a non recourse loan, you need to consider what qualities are essential in a financial advisor before you sign any paperwork.
We live in an age when technology can do more and more, yet human interaction continues to matter most. If financial advisors want to earn your business, they should demonstrate respect upfront in both the way they speak and how they listen.
Any banker worthy of your business will strive to understand your unique situation and expectations. Only then can he or she deliver what you’re really after. If a banker doesn’t start off the relationship by asking probing questions about your goals and desires, that’s a bad sign.
Financial advisors must also provide timely responses to client questions. Can you believe that 90 percent of callers who leave voicemails never get responses? Think about how frustrating it is to be put on hold or simply ignored. At a time when communication is easier than ever, a slow response is inexcusable. We live in a fast-paced world where people expect to know the answers to their questions now — not a week from now. Whether you’re calling, emailing, or texting, a great financial advisor will always be responsive.
It also goes without saying that honesty is crucial in a banker-consumer relationship. You wouldn’t maintain a personal relationship that wasn’t built on trust, so why would you maintain a financial relationship that wasn’t 100 percent credible?
Note These Red Flags When Choosing a Banker for Your Self Directed IRA
Now that we’ve covered the qualities of a trustworthy financial advisor, let’s talk about what specific traps to avoid. If a potential banker displays the following red flags, consider taking your business elsewhere:
Red Flag No. 1: A one-size-fits-all approach
Everyone is unique and has different needs and expectations. If a bank tries to force you into a box with other similar individuals rather than treating you like a unique person with your own set of challenges and goals, that’s a bad sign. This behavior tells you that the bank will not be responsive to your needs and is merely trying to sell you a product or service — one that most likely will not be tailored to your individual situation.
Red Flag No. 2: Cross-selling from the get-go
Too many banks that offer non recourse loans try to fill your cart immediately with products you didn’t ask for and don’t need. This is off-putting and demonstrates a lack of respect. Again, the product shouldn’t be a banker’s first or primary concern. When an advisor jumps into a conversation with three or four options upfront, you’ll most likely feel steamrolled.
So how do you know you’ll be truly heard and not just steamrolled into a new account? Listen for these key phrases:
- “Tell me what you are looking for.”This is the No. 1 phrase a customer should hear from a potential banker. It indicates that the banker is listening and cares about helping the customer meet his or her goals.
- “How can I help?”This phrase tells a customer that a banker is responsive and wants to be a true advisor, not someone who simply pushes the newest product.
- “Why did you choose our bank for this service?” This question gives the banker insight. Knowing how a customer found the bank will help the advisor better understand that person and can help the banker tailor the approach to the customer’s specific needs.
The bottom line: You deserve to work with a banker who will treat you with respect and who will advise you based on your own unique situation. At First Western Federal Savings Bank, you’ll find a culture founded on honesty that you won’t find elsewhere. We provide non recourse loans for self directed IRA custodians all over the country, and we pride ourselves on maintaining a personable, small-town feel.
To learn more about how to borrow from your IRA or to get started on your own IRA non recourse loan, fill out our contact form or call us at 800-908-8845. If we don’t pick up, we’ll get back to you quickly — and that’s a promise.