It’s been so long time since I wrote about how to pick a financial advisor that I can’t even find it!
And with the last two years of crazy things due to the pandemic, it is time to revisit the topic.
There are so many levels to choose from when picking a financial advisor; from budget counseling to investment management.
One of the first things to consider is the connection or history to your personal situation.
If you need help setting up a spending plan or paying off consumer debt you do not need a portfolio manager.
If you’re a successful experienced investor, you don’t need a budget counselor.
While the above examples are extremes, there are questions in my book that you can ask anyone you are considering working with from a CPA to an attorney to a building contractor.
You can modify the questions to interview these different professions. As an example, if you were looking for a building contractor you could change # 9 to ask, “Are there some homes nearby where I could see a sample of your work?”
And you can get a copy of my Wealth On Any Income book with a tax-deductible contribution of $25 to the charity Shelter To Soldier through my website at: https://www.justgiving.com/fundraising/wealthonanyincome
These questions on how to pick a financial planner come directly from my Wealth On Any Income book.
- What is your background, education, and experience?
- How do you stay current with changes in your field?
- How do you get paid? What conflicts could arise between your interests and mine?
- I am most concerned about ________. How might you handle that?
- What are the typical circumstances and incomes of the clients with whom you work?
- Are there others to whom you refer that assist you with your recommendations?
- Are they in your office?
- Do you get assistance for help in complex areas of tax planning, portfolio management, insurance evaluation or estate planning?
- Can I see a sample of your work?
- Do you fully disclose commissions you will earn if you sell products?
- If you don’t sell financial products, can you make specific recommendations on how I can buy them at the best price?
- What continuing services do you provide? How much do they cost?
- Have you been reprimanded or disciplined by regulatory or industry bodies? Can you provide their contact information so I can verify that?
And if you have any questions, feel free to reach out to me.
To Your Prosperity,