Trust: A Financial Advisor's Most Important Asset

A financial advisor's most valuable asset is not expertise, experience, or even the ability to generate returns for clients. It's trust, the foundation of any successful advisor-client relationship. It sets an advisor apart from the competition and keeps clients coming back.

“The pressure is on for advisors to show their value outside of traditional portfolio management,” Billy Lanter, fiduciary investment advisor at American Trust in Lexington, Kentucky, told Investopedia. “The superior experience clients are willing to pay for is a personal relationship with an advisor who not only understands their goals but is managing their portfolio in accordance with those goals."

Financial professionals across the country we interviewed agreed that trust is the key to building lasting, productive relationships with clients. Trust is essential whether it's a client new to working with an advisor and wary of being upsold, or someone going through a divorce or estate transition planning and facing some of the most personal and complex financial decisions of their lives.

Below, we explore practical strategies for demonstrating your expertise and communicating effectively on your way to a fulfilling career while improving your ability to help your clients achieve their financial goals.

Trust and the Client Relationship

First, we should be clear that advisors cannot simply decide whether to become warm, empathetic financial experts. The traditional life cycle of a financial advising career and changes in the financial sector, where advisors experiences range widely, have meant that many feel held back from building better client relationships. Almost a third of financial advisors say they don't have enough time to spend with clients, conditions unlikely to breed long-term trusting relationships.

“Right now, many advisors are struggling to find the time to deliver the level of hands-on service they know is critical to growing their business. They’re spending more time on administrative and compliance-oriented tasks,” said Craig Martin, an executive managing director at J.D. Power.

That lack of time sends a message. "I also often hear from prospective clients that they haven’t heard from their advisor in quite some time. This seems to be pretty revealing about the advisor’s business model as it doesn’t necessarily demonstrate that the client comes first," said Valerie R. Leonard, one of Investopedia's top 100 financial advisors and CEO of EverThrive Financial Group in Birmingham, Alabama. 

What the Data Says About Trust and Financial Advising

Recent survey data confirms that trust remains the cornerstone of the advisor-client relationship. A 2025 CapIntel survey revealed that 72% of investors surveyed identify trust as the most important quality when choosing an advisor, ranking it above investment experience (50%) and holistic financial perspective (46%). Investors ranked a breach of trust (61%) above poor performance (54%) as the primary reason that would cause them to end a relationship with an advisor.

This aligns with YouGov's 2024 Financial Services survey of over 9,000 Americans, which found that 60% of financial advisor clients consider trustworthiness the top factor, with this figure rising to 68% among higher-income individuals.

How do advisors build trust? Research from CapIntel shows that 46% of investors value advisors who demonstrate an understanding of their financial goals and provide clear information about performance. In addition, 85% want clear communication, 82% seek organized advice, and 80% expect personalized guidance tailored to their unique situation.

Different generations of investors vary in their communication preferences. About 69% of millennials said they preferred communicating with advisors digitally, compared with 43% of boomers.

The Importance of Trust

Referrals are the lifeblood of a thriving financial advisory practice: more than half of wealthy clients found their current advisor through one. But what inspires a client to recommend their advisor to others? The answer is simple: trust.

Three-quarters of consumers say the "service" they most seek from a financial advisor is to "develop a connection/relationship.” It's easy to see why. "There’s nothing in life we do, no decision we make, that doesn’t have to do with money in some way," Leonard said. "If clients don’t believe they can trust you to be transparent or keep their conversations and financial details confidential, they will never do business with you. It’s really that simple."

So, what fosters trust between a client and their financial advisor? "Throughout my career, I’ve recognized that clients must buy into our relationship before they can buy into my services. They need to know that I genuinely care about them, that they can rely on me to do what I say I’m going to do, and that I’m willing to be open and honest about who I am," Leonard said. 

Lanter emphasized simply being responsive. "A phone call or email that goes unreturned can do significant damage," he said. He added that clients form opinions early in their relationship with an advisor, and even small missteps can erode trust.

Establishing a strong rapport, Lanter said, includes being very engaged when there's market volatility, which can significantly calm a client who's growing nervous. "Client fears are eased when they know you understand their goals, you're managing their portfolio according to those goals, and you can show them that everything is on track," he said.

He encourages advisors to embrace a fiduciary relationship and tackle difficult conversations head-on. "Ethical trust is like a sixth sense—clients usually know when something doesn't feel right," he said.

An Example of Building Trust as a Financial Advisor

Leonard shared a recent experience that highlights the central place of trust in a client-advisor relationship. She had been working with a client for two meetings, but something seemed "off." The meetings were not as productive as usual, and Leonard couldn't figure out why.

She decided it was time to have a candid talk with her client, reassuring them that she was on their side. "If they would trust the process," Leonard said, "we would likely be able to make more progress toward their goals."

Her approach worked. The client admitted they were hiding significant debt both from her and their spouse. "Once the admission came to light, I reassured them that they weren't the first, nor would they be the last client to withhold personal details about their situation," Leonard said.

The talk was a turning point. "It was evident after that conversation that this client was able to breathe a sigh of relief and was glad they could confide in me," she said.

For Leonard, addressing clients head-on in these situations is critical. "Every relationship takes work, and if advisors aren't willing to be open and honest with their clients, the relationship will likely never reach its full potential," she said.

The Importance of Making Time

Time management is crucial for financial advisors looking to build client trust. While there are trade-offs, reducing the time spent on research and administrative tasks provides more chances for meeting with clients and adding value for them.

Mike Costa, vice president of Fiduciary Trust Company in Boston, Massachusetts, emphasized being disciplined with your priorities. "Advisors should focus on the tasks that are most important to achieving clients' goals, delivering client value, and strengthening the client relationship," he said.

Costa said that by translating an understanding of the client's personal situation, goals, and objectives into a comprehensive plan, "advisors can better align with clients' interests and focus their time and activities on the key tasks to achieve those plans."

Nick Holeman, a certified financial planner at Betterment, suggested tracking how you spend your time and using that data to identify inefficiencies in your routine. For example, if your time is best spent on relationship management or prospecting, he recommends outsourcing as much of the back-end office work as possible.

Lanter said he's had success with service calendars. This involves discussing how often clients would like to meet and what topics they want to cover each time you connect. "An intentional approach to client meetings can keep you and the client focused on the things that are most important to them," he said.

The Importance of Listening

Deepening these relationships involves educating clients, managing time efficiently, framing advice with clients' goals in mind, and communicating effectively. It also means ensuring that they feel heard.

"Good communication requires that advisors listen more than talk," Costa said. "Advisors who are effective listeners can better identify their client's goals and concerns and develop planning and investment solutions tailored to each client's unique situation."

Lou Cannataro, a partner at Cannataro Family Capital Partners in New York City, suggested focusing more on the client than noise in the market. "Clients only begin to care what you know when they realize that you're tuned in to what they need and want," he said. "This is when true communication begins."

Holeman also stressed the importance of transparency. "Lack of clarity and transparency prevents clients from ever fully trusting that an advisor has their best interest in mind," he warned.

This means more than being open about the risks of certain investments. It also means conveying complicated information in a way that all involved can understand. Online financial advisors can use digital interfaces to convey information clearly. For advisors meeting clients in person, providing details in print or via email ensures nothing is lost in conversation.

The Bottom Line

Trust sets an advisor apart from the competition and keeps clients coming back. Building trust requires transparency, integrity, and always putting clients' needs first. Advisors must be willing to approach difficult topics, admit when they don't know something, and always act as a fiduciary. Studies show that, for consumers, the major difference separating humans from robo-advisors isn't knowledge but the relationships they can form.

While investing time in building trust may require trade-offs, advisors can reap substantial returns by retaining clients and getting more referrals. Consistency is a vital part of this, Cannataro said. “You have to continually earn the honor and privilege to work with your client by never faltering in delivering what you’ve promised.”