Financial Advisors - Questions to ask before you hire
What kinds of questions should you ask financial advisors before you meet with them for advice? This site offers a few suggestions of possibilities to start with in choosing yours:
First and foremost, you want to find out what kind of experience the financial advisors have. How long have they been practicing and what kinds of companies have they been a part of? Make sure to choose one who has experience on working with individuals one on one.
What kind of qualifications do they have? Financial advisors can be recognized as CFP’s, CPA’s or ChFC’s. Look for one who has experience in taxes, investment and retirement. You can check proof of their certified qualifications with professional organizations. There are several government agencies as well that keep records of these certifications along with any records on disciplinary history, if any. You may want to inquire what types of organizations the financial advisors may be associated with and then follow up with a contact at those organizations to do a background check.
Ask the financial advisors what kind of approach they take to planning? What type of clients do they prefer to work with and how do they work with the goals? Do they like to bring everything together or focus on specific areas? Make sure they aren’t too overly aggressive and will sit and listen to your questions and concerns.
Find out from the financial advisors if they will be working with you individually or if they will also be relying on the help of their colleagues. If there will be others also working with you, ask to meet them as well or if not possible, at least get a list of their names so you can check on their backgrounds.
What is the amount that the financial advisors charge? Typically, you can be given an estimate of the costs based on what type of work you are expecting to be done. Usually, financial advisors have hourly rates or flat fee and/or a percentage as a commission for any products you might purchase as part of your recommendations. Also, ask how you will pay for the services and make certain that it is clear and understood on both ends.
Most importantly, make sure to get all of your information from the financial advisors in writing! Ask for a written agreement on the services/charges that will be provided and keep this document for reference in the future.