Top 10 Questions To Ask Financial Advisor
1.How do you get paid for your services?
2.What’s your own investment philosophy?
3.How will you consider my assets that you don’t directly manage?
4.How will you invest my money?
5.What happens if I die or become incapacitated?
6.What’s your succession plan?
7.What are your credentials?
8.Where will my money be held?
9.Are you a fiduciary?
10.What’s included vs. what’s extra?
Questions To Ask Financial Advisor At First Meeting
11.What tax hit do I face if I invest with you?
12.Who is your custodian?
13.What investment benchmarks do you use?
14.What asset allocation will you use?
15.What’s your investment philosophy?
16.How will our relationship work?
17.What are your qualifications?
18.What are my all-in costs?
19.How do you get paid?
20.Are you a fiduciary?
Questions To Ask Financial Advisor About Their Job
21.How Often Do You Communicate With Your Clients?
22.What Is Your Investment Philosophy?
23.What Extra Fees Should I Be Aware Of?
24.How Do You Earn Money?
25.Do You Have a Set Account Minimum?
26.What Types of Clients Do You Specialize In Serving?
27.What Services Do You Offer?
28.Do You Have Any Disclosures?
29.Are You a Fiduciary?
30.What Certifications Do You Have?
Questions To Ask Financial Advisor Before Hiring
31.In addition to what I pay you, what other costs will I have to absorb?
32.If you aren’t a fee-only advisor, are you eligible for bonuses for your work? How can you earn them?
33.Does your company offer contests for selling investment products?
34.Do you specialize in certain types of clients?
35.How do you develop your investment recommendations?
36.How would you describe your investment philosophy?
37.Will you be creating an investment policy statement (IPS) for me? (An IPS contains an investor’s financial goals, as well as the plan on how to reach them. The document is essential for long-term investors.)
38.What is the average portfolio size that you handle?
39.What specific services do you provide?
40.How often will we have meetings?
41.What custodians, broker dealers, and mutual fund providers such as Vanguard, Schwab and Fidelity, do you use in your practice?
42.Have you ever been disciplined for illegal or unethical behavior?
43.Can you give me three client references?
44.Are you a fiduciary? In other words, are you required by regulation to put your clients’ interests ahead of those of your firm and its employees?
45.How do you charge for your services? Are you a fee-only advisor (only charging a fee as a percentage of assets under management) – that’s almost always preferable? Or are you compensated by commissions or a combination of fees and commissions (fee-based)?
So these are some of the best questions to ask your financial adviser. Like we had said you can only know if the financial adviser is right for you or not by asking them the right questions and getting all the answers you have looking forward to getting. You can even write down these questions and ask your financial adviser at your next meeting with him.