You’ve decided that your financial life is too complex and you need professional help. You’ve talked to friends and co-workers about recommendations, done your online research, and found an advisor that you think might be a good fit. You call the office and set up an initial meeting with the advisor. You arrive at the office on time and are ushered into a conference room where the advisor is waiting. After introductions, it’s time to get down to business, but you are dumbfounded and your mind goes blank. You know you need help but don’t know where to begin. “What do I say?” “What details are important?” While the advisor may have much to say, here’s a list of questions to ask. The answers will help you decide if indeed, this is a good fit and the person you want to work with.
- Are you a fiduciary?
- What is your investment philosophy?
- What investments do you place in client accounts? Stocks? Bonds? Mutual Funds? ETFs? Options? Private equity? Other Vehicles?
- How do you view risk?
- How are you compensated?
- What will working with you cost?
- What training do you have that qualifies you to manage my financial affairs?
- Do you sell financial products?
- How will you work with me?
- How often will we meet?
While you could add other questions, this list will get you started in your interview of any potential advisor. As you listen carefully to the responses, you will be able to come to an informed decision about hiring this advisor.