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The only commonality between picking a life partner and your financial advisor is that both of them should be trustworthy. You give your life in the hands of one person and the confidential details of your financial life to the other. But, the question remains: how do you if a particular person is bankable? In the case of a financial advisor, you can make up your mind based on the information you have about the person. And the only way to gather this information is by asking critical questions to your financial advisor. Here is a list that can help you with the process.

1. How do you get paid?

You don’t want to give the control of your financial investments in the hands of someone who is trying to get a commission on selling certain financial products to you. So, it is a good idea to inquire about how your financial advisor gets paid before you entrust the future of your financial portfolio in their hands. At the end of the day, you need someone who has your best interests in mind.

2. What services are included?

It’s most likely that you have certain goals for your financial growth and it only makes sense to opt for an advisor who will offer the right services to you to achieve those goals. So, make it a point to ask them about the services they offer. If you need financial planning along with tax and retirement planning, then you will have to seek a financial professional who can offer the same.

3. How do you charge your services?

Different financial professionals charge their services differently. Some of them charge on an hourly basis whereas others simply ask for 1 percent of your investment fees. An article posted in the Forbes magazine suggests investors to “ask whether there’s an initial planning fee, whether they charge a percentage for assets under management, or whether they make money from selling you a specific product. Not only should you know how much the service will cost you, but it can help you determine whether they have an incentive to sell you things.”

4. Are you a fiduciary?

The main aim of asking this question to understand how the financial advisor works and how transparent is he with his style of working. If you don’t get a straight yes or a no, then you ought to probe further to understand if he really has your best interests in mind. Non-fiduciaries tend to sell certain financial products with the disguise of providing financial advice and you want to be wary of being associated with such people.

These were some of the most basic questions to ask your financial advisor. If you are on the lookout for reliable financial professionals, then reach out to us today!

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