Finding a financial advisor who aligns with your specific life goals is the key to protecting your wealth and defining a clear path for retirement. Good referral sources include trusted directories, such as the CFP® Professionals Directory, friends and family members with similar values, and other professionals, like your tax accountant or lawyer. However, it’s also important to do your own vetting of candidates.
To ensure you choose the right financial advisor for your goals, here are 9 important questions to ask before you commit.
9 Questions to Ask Your Financial Advisor
1. Are you a fiduciary?
A fiduciary is legally required to put your best interests first 100% of the time. Unfortunately, not every financial advisor is a fiduciary. This means they can legally recommend investment products, insurance policies, or funds that pay them higher commissions, as long as the product is loosely appropriate for your goals, even if a cheaper or better option exists.
2. Do you have any certifications?
Financial advisors who have the CERTIFIED FINANCIAL PLANNER™ (CFP®) designation. are bound by the CFP Board’s strict code of ethics and professional responsibility, and must complete thousands of hours of verified professional experience. They also must undergo rigorous training and testing, and offer comprehensive, holistic financial planning, rather than just selling investment products.
3. What services do you offer?
Before signing on with a financial advisor, it’s important to consider the products and services you might need and confirm that they offer them. For example, some advisors only offer investment management, while others will also offer tax strategies, estate planning and retirement planning.
4. What is your investment philosophy?
Asking a financial advisor for their investment philosophy helps you determine whether their core beliefs and methods match your personal goals, risk comfort and timeline. It shows you how they plan to grow your money and protect it when the market drops.
5. Do you have experience working with clients in similar financial situations as mine?
This will help you assess the financial advisor’s ability to customize strategies to your unique circumstances, values and goals. It will also help you determine if they have relevant experience for your financial needs, such as generational wealth planning, college loan repayment or retirement strategies.
6. What technology or tools do you use to support your clients?
Your financial advisor should proactively adapt to evolving technology. Find out how they are using technology and tools for financial tracking, planning and communication to enhance the client experience, and ask if they are using artificial intelligence, and how.
7. How will we communicate?
Whether it’s through in-person meetings, virtual check-ins or a combination of both, the frequency and method of communication should work for both of you. Your financial advisor should also provide regular market updates and account statements.
8. What is your fee structure?
Reputable financial advisors can provide a written fee disclosure and disclose exactly how they’re paid before you sign on to work with them. A thorough answer about their fees gives you an understanding of how much it might cost to work with the advisor, both now and in the long-term.
9. Who holds my assets?
Under the SEC’s Investment Advisers Act, financial advisers who have custody of client funds or securities must keep them with a separate qualified custodian, like a bank or broker-dealer, to prevent the advisor from mixing your money with their money and protecting you from fraud.
Request a Consultation for Financial Planning Services in Albany, Saratoga, Glens Falls & Old Forge
If you are looking for a financial advisor, the first step is to set up a consultation. During our initial consultation, I’ll evaluate your current financial plan and strategy, and identify areas where I can help — and you’ll have the opportunity to get to know me and my style, learn more about Rosemont Financial Group and my financial planning services, and ask any questions that you may have.
To schedule a free consultation for financial planning services in Lake George, Queensbury, Glens Falls, Saratoga and throughout the Adirondacks and Albany Capital Region, send me a message or call the Rosemont Financial home office at (518) 621-7173, and ask for Cody Wojdyla.