subject: Make Sure You Ask These Financial Advisor Interview Questions [print this page] Choosing a financial planner can be one of the more important decisions you will ever have to make and these financial advisor interview questions can help you make the right choices. A financial advisor will help you manage your assets so that you can pursue your financial goals. We feel a good financial planner strives not to limit themselves to simply using your financial data to create the plan, but also be able to consider your personal issues. Here are some of the important questions we recommend that you ask any prospective financial advisor you are considering working with.
1. How long have you been a financial advisor? While a new financial advisor is not necessarily a deal breaker, one with at least five years experience is preferable. Or you can ask them who they have worked with in the past and call these people to check out their professional competence.
2. What is your investment philosophy and strategy? Many planners take a passive approach to investing. They recommend or sell investment and don't actively monitor clients' accounts rather they'll just move on to the next sale. In today's challenging and often volatile financial marketplace we feel it's vital you work with a planner who proactively monitors your portfolio.
3. What type of clients do you normally deal with? Preferably, the financial advisor you work with should have experience with people who have similar financial circumstances to you.
4. What kind of information do I need to provide to you so that you can help me develop a financial plan? Keep in mind that financial advisor interview questions should involve not only your financial circumstances but also your personal goals. In short, any good financial planner will get as comprehensive a picture of you and your financial objectives as possible so that he can make specific financial recommendations that will suit your goals.
5. What products do you offer advice on? Of course financial planners will have their own products that they promote, but the best ones will put their client's needs first and recommend a wide range of products. And if you already are using a particular financial product, can they advise you on it? Avoid financial planners who seem more interested in selling you their company's products.
6. How are you compensated for your services? Work with a financial planner who charges on a fee-for-service basis rather than as a percentage of your assets. This will show you exactly what you are paying for their services. Some planners, however, may ask to be paid on a mixed basis model, i.e. charging a flat fee as well as commissions if you use their company's products. Make sure you understand not only what your planner charges now but also in the future.
7. Will you provide regular consultations and how much will you charge me for these? Your financial plan is not static but is something that will change as time goes on and your objectives change. A financial planner should provide you with regular reviews and ongoing consultations as external financial conditions change to keep you updated on your investments.
8. How do you stay updated on the latest developments in your field? A good financial planner is constantly learning through ongoing education courses.
Securities and Investment Advisory Services may be offered through NFP Securities, Inc. (NFPSI), Member FINRA/SIPC. NFPSI is not affiliated with Universal Partners.
by: Chris Nichols
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