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Ten Questions to Ask Your Financial Advisor

Ten Questions to Ask Your Financial Advisor


As a helpful resource, here are issues you will want to explore before you hire someone to be your financial advisor (from LetsMakeaPlan.org).


If you would like to me meet with me, I recommend we review these questions at our first meeting.


Choosing an advisor is one of the most important financial decisions you will make. It will take some work on your part, but partnering with the right financial advisor will help reduce your financial stress and give you confidence and security today and in the future.


Whether you’ve been referred to a financial advisor by a friend or family member or have found one on your own, be sure to interview the advisors you are considering to find the one who is the best fit for you.


CFP Board: Ten Questions to Ask Your Financial Advisor


1. What are your qualifications and credentials?


Ask about the credentials your advisor holds, and learn how he or she stays up to date with current changes and developments in the financial planning field. As part of their certification, CFP® professionals commit to acting as a fiduciary when providing financial advice to a client, and they expand their knowledge and stay informed through mandatory continuing education.


2. What experience do you have?


Ask for a brief description of the advisor’s work experience and how it relates to his or her current practice. CFP® professionals have at least two years of personal financial planning experience.


3. What services do you offer?


Credentials, licenses, and areas of expertise are all factors that determine the services an advisor can offer. Ask your advisor what products, services and advice he or she can offer.


4. What is your approach to financial planning?


Ask the advisor if he or she will create a comprehensive financial plan for you. Learn how he or she will implement the plan and recommendations and/or work with other professionals.


5. What types of clients do you typically work with?


Some financial advisors prefer to work with clients whose assets fall within a particular range, so it's important to make sure the advisor is a good fit for your individual financial situation. When you search for a CFP® professional on this site, you can specify your investable asset range to find an advisor who has indicated that he or she accepts new clients with your level of assets. You can also search by focus area or language(s) spoken. If you have any unique financial circumstances, make sure you ask the advisor if he or she works with clients like you.


6. Will you be the only advisor working with me?


Some financial advisors work with clients directly, and others have a team of people that work with them. Ask who will handle your account, and ask whether the advisor works with professionals outside his/her own practice. If yes, ask for a list of names, roles and backgrounds.


7. How will I pay for your services?


You can pay for financial advice in several ways: through fees based on a percentage of the investable assets the financial advisor manages for you, commissions on the products the advisor sells, or a combination of both. Some advisors charge annual or monthly fees for clients who don’t have assets to manage. Your advisor should clarify how he or she expects to be paid for services rendered.


8. How much do you typically charge?


How much you pay will depend on your particular needs. The advisor should provide you with an estimate of possible charges based on the services that will be utilized and any products that will be used to implement your plan.


9. Do others stand to gain from the financial advice you give me?


Ask the advisor to describe any potential conflicts of interest. For example, advisors who sell insurance policies, securities, or mutual funds may have a business relationship with the companies that provide these products. As part of their certification, CFP® professionals make a commitment to CFP Board to abide by CFP Board’s Code of Ethics and Standards of Conduct and place your interest first when providing financial advice.


10. Have you ever been publicly disciplined for any unlawful or unethical actions in your career?


Ask your advisor if he/she has ever been publicly disciplined by any organization that regulates his or her conduct. You may find information about financial advisors through FINRA's BrokerCheck and the SEC's Investment Adviser Public Disclosure databases. CFP Board disciplinary history of a CFP® professional can be found through the Board's Verify tool.



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