Tip On Questions To Ask A Financial Advisor
If you are looking for a financial advisor to help you with your finances, be warned that practically anyone can call themselves one. Roger Sorensen lays out 10 Questions To Ask A Financial Planner (along with an interview worksheet):
- What experience do you have?
- What are your qualifications?
- What services do you offer?
- Are you Independent of financial product sponsors?
- Will you be the only person working with me?
- How will I pay for your services?
- How much do you charge for your services?
- How are you licensed?
- Have you been publicly disciplined for any unlawful or unethical actions in your professional career?
- Can I have it in writing?
You should take your time and feel totally comfortable with the advisor you choose. It's well worthwhile asking friends for recommendations and to interview a number until you find the one that is correct for you. If you have any reservations, you're better off passing and looking for someone else.
You should also have done some basic research yourself. This allows you to ask a number of financial questions to see how the financial advisor responds. It places you in a much better position to evaluate their knowledge and to get a feel if they are looking out for you or themselves. After all, this person will be helping you decide where to place your hard earned money so you want to have complete confidence that they are working for you.
An important footnote: Financial advisors cost money. Before you hire one, consider carefully whether you can manage your investments yourself at far lower cost.