When it comes to taking control of your own finances, you’ll want to ask a few questions to ask your financial advisor. By asking smart questions, you’ll get the best advice for making the most informed financial decisions possible. Here are some questions to ask your financial advisor.
- Who is your financial advisor? Your financial advisor – or maybe your finance adviser – is someone who will be advising you on financial issues. He is an asset manager, a futures trader, an investment professional, etc. Make sure you find out what specific services he provides and whether those services are in line with your own goals and objectives. If they aren’t, find somebody else.
- What kind of clients does your financial advisor have? This is a question to ask not only for your own financial advisor but also anybody else you’re considering hiring. For instance, does your advisor belong to any professional association or group? If so, ask questions about their memberships and credentials. Don’t feel shy to ask questions about the backgrounds of any other individuals whom you’re thinking of working with.
- How much do you plan on needing to pay your financial advisor? This question is important. Will you need to pay your financial advisor monthly fees, weekly fees, yearly fees, etc? Know this as well. You don’t want to end up with a financial plan that you can’t afford. Your advisor may recommend a fee structure that you need to consider before you commit to anything.
- What kind of relationship does your financial advisor have with other professionals? Are they your peers or just people you happen to bump into? Do you know anyone who works with your advisor? If so, are they a good fit for you? These are just a few questions to ask your financial advisor – don’t rush through them.
- How involved are you in your advisor’s day-to-day activities? Are you consulted regularly or only on major projects? Are you informed of decisions that impact your portfolio? These are just a few questions to ask your financial advisor – don’t wait until you have questions to ask when it’s too late.
- What are your options if you want to change your advisor? Can you get a new advisor, who will be more responsive to your needs? Do you need to change your financial advisor because you don’t like his/her style? These are just a few questions to ask your financial advisor – don’t wait until you have questions to ask when it’s too late. The sooner you learn what your options are, the sooner you can move on and enjoy your advisor’s services.
In the end, it all boils down to trust. You should know that the advisor is qualified and trustworthy. Ask open-ended questions to find out how knowledgeable he/she is. If possible, try to contact former clients to see how they dealt with the advisor and their experience. If possible, you can also hire a tutor to help you with the questions to ask your financial advisor, as the advisor won’t always be able to answer them.
Now that you have some questions to ask your financial advisor, you need to make sure that you are comfortable with them. Never share personal information with your financial advisor unless you are completely comfortable. You need to trust him/her to provide you with the best advice based on your situation. If you are not completely comfortable with any questions to ask your financial advisor, ask other people for their input. You might also consider hiring a tutor to help you with the questions to ask your financial advisor.
Some financial advisors can be pushy, especially when it comes to fees. If your advisor tries to pressure you into signing a contract, move on to another advisor. Some advisors can be very convincing when it comes to fees; however, many financial advisors do not have your best interest at heart.
It is important that you work with a financially intelligent person. You need to be able to trust your advisor and listen to his/her advice. Never let a financial advisor pressure you into anything. If they do, find someone else to work with.
Remember, if you are asking questions to find out more about your potential financial future, this is a very important step. Always choose an advisor who you feel comfortable with. Also, take the time to do your research before hiring. Know what you are getting into before you sign anything!