Six Interview Questions to Ask a Financial Advisor
Before you hire an investment adviser or money manager, interview and evaluate a several advisers to find the one whose style fits your financial needs. Here’s a checklist to get you started:
• What experience do you have? Find out how they’ve been in practice, the number and types of companies with which they have been associated, and a description of their work experience.
• What are your qualifications? Ask what qualifies them to offer financial advice, and what are their certifications. If you’re hiring a financial planner, find out their experience in topics like insurance, investments, estate planning and retirement planning.
• What services do you offer? It depends on the advisor’s credentials, licenses and areas of expertise but generally, financial advisors can’t sell insurance or securities without the proper licenses, or give investment advice unless registered with state or Federal authorities.
• How will I pay for your services? An advisor should clearly tell you in writing how s/he will be paid. The usual methods are fee-based, on commission, or a mixture of the two.
• Have you ever been publicly disciplined for any unlawful or unethical actions in your professional career? Ask what organizations the advisor is regulated by and contact them to do a background check. Two Web sites we recommend are FINRA’s BrokerCheck and your state’s Securities Regulator.
• Can I get it in writing? Ask the advisor for a written agreement that details the services you’ll be provided, and hold on to it for future reference.
