12 Important Questions to ask your Financial Advisor

February 4, 2023

Here I would be giving you 12 important questions to ask your financial advisor. Having a financial advisor is one of the best ways that you can grow financially because having a financial adviser has too many benefits.

Financial advisors are people that have financial knowledge and they can coach you through having a good financial life which is why you need one. But before hiring one these are 12 important questions to ask your financial advisor.

12 important questions to ask your financial advisor

You should not just wake up in the morning and decide to hire any financial advisor that you see. In fact you should definitely not not hire the very first financial advisor that you come across because you need to properly scrutinise them in order to pick the one that is best for you.

There are different type of financial advisors so asking them important questions might help you determine if they will be good for you. Below I have listed 12 most important question to ask your financial advisor before employing them. This is because you would want to make sure that you are hiring the best person that can improve your financial situation tremendously.

Top questions to ask your financial advisor

What do you charge and how much am I likely to pay?

It is very important to know how much the financial advisor is going to be charging you once their services have been employed it is part of the rules that they have to live by. Many financial advisers charges by the hour while others simply charfe a fixed amount or percentage of the value of your pension for those people looking for retirement advice so be sure how much they charge.

Are you a fiduciary?

The next question you need to ask your financial advisor is to know if they are a fiduciary or not. Do not make the mistake to always assuming that the person you are going for is a fiduciary because many of them are not. It is only a fiduciary that has your best interest at heart any financial adviser that is not what is simply a salesperson that will be of no benefit to you financially.

How are you paid?

Now that you know the price that the financial adviser that you want to go for is going to charge you it is now time to know how they get paid. Which is why you want to focus on fee-only financial advisors because these once does not get compensation from other insurance products that gives them percentage So they are inclined to work in your best interest.

What services do you offer? Are you independent?

It is also very important to understand the type of service that that financial adviser is going to be offering if they are an independent adviser. An independent financial adviser must be able to offer a range of products from across the whole market so that they provide unbiased and unrestricted advice to their customers this is the one you want to go for.

What are my all-in costs?

They are all the fees that a financial adviser with charge which can also build up over time to hurt your savings or even reduce your net worth . Which is why it is important to always ask your financial advisor what are the extra fees you are going to be paying so that we did not end up regretting ever getting that particular financial advisor.

How will you help me stick to my financial goals?

Another question that you need to ask your financial advisor is on how they are going to be helping you stick to your financial plans so that you can achieve your financial goals. When investors In stocks customers usually tend to say when stock market falls and then buy back in stock market is high which is not a good behaviour so make sure to understand how your financial advisor we help you stick to your plan to get your goal.

If you’re not independent, can you look at products from across the market?

Any financial advisor that is not independent is usually restricted to only one form of financial advice ever you can still ask them if they can provide assistance from products across all markets. Even if the advisor specialises on only retirement if they can also provide assistance with all the wider range of products such as investment and other.

What are your qualifications?

It is also another thing of important to verify the qualifications of the financial professional you are going for. Financial advisor usually comes with different in which years in their name however you should do your work by Clarifying their qualification. You can make use of the The Financial Industry Regulatory Authority’s professional designations Database to get more understanding on their requirements.

How does your firm measure your performance as a financial advisor?

You need to ask how the Firm of that financial professional you are trying to play measure performance of a financial advisor. So that you can know if the Firm only prioritise financial advisors that only bring in profit. These are the types of financial adviser that might want to sell your products and make money not actually having your best interest in mind.

Do you have many clients who are in a similar position to me?

It is important to understand that having a financial advisor that has advised people with similar cases to yours is a good thing. Because if they have advised people successfully with similar cases to your then they will be able to help you easily. Some advisers might want to help any customer no matter the size of their pension while others only advice customers with certain amount of pension.

How will our relationship work?

It is very important to know how much access you are going to be having with that your financial advisor. If they can be able to meet with you at of schedule and in schedule or if you will be able to meet with them using phone calls or email addresses anytime you want. This is because there might be a certain time that you might need access to them outside of schedule.

What happens if you change companies?

The last question on our list today is to know what will happen to you if your financial advisor changes company. It is not a good thing after building Trust with your financial advisor and he or she ends up changing to another company and can no longer be your financial advisor. Which is why it is very important that you understand what will happen is they switch companies.

12 Important Questions to ask your Financial Advisor

12 important questions to ask your financial advisor