Ideas

Ten Questions for Your Financial Advisor

We’ve established that working with a financial advisor can help save you from yourself. But not all advisors are created equal. Ask the following ten questions of a potential advisor to ensure that you are working with the best.

1.   Are you a fiduciary? A fiduciary has a legal requirement to place his clients’ interest ahead of his own.

2.   How will you keep me from being my own worst enemy? Don’t forget, behavioral coaching is an advisor’s greatest added value!

3.   How do you charge and how much? Fees are more negotiable than you might imagine, especially for larger accounts.

4.   Do you have a niche? Some advisors specialize in working with small business owners, “women in transition” or those with values-based investment preferences.

5.   What services do you offer? Some financial professionals offer only planning or investment advice, while others offer a broad range of services. Ensure that what is offered is consistent with your needs.

6.   What are your credentials? Look for some combination of years of experience, appropriate certifications and post-graduate education.

7.   What is your investment philosophy? A clear and concise investment philosophy is a sign of having given this deep thought. A corny sales pitch is a sign that you should run.

8.   How often will we communicate? This should be driven by your needs and preferences. Expect roughly four times per year.

9.   What is unique about your client experience? You are paying good money for this service and should be treated accordingly. 

10.   What is your succession plan? Someone asking you to think about the long term should have done so as well.

These questions are taken from The Laws of Wealth, the new book by New York Times bestselling author Dr. Daniel Crosby. Get yours today!