Choosing a financial adviser should be a process, not strictly based on a single recommendation of any friend. The Bernie Madoff story should have taught us that. You’ve spent your whole lifetime acquiring whatever money you now have – and – you need to be very vigilant with who you trust managing your money. The following are questions that any advisor should ask you. Without them knowing this, they really can’t know the best way to manage your money.
Questions a financial Adviser Should Ask You
During an initial interview, a financial adviser should seem like a doctor trying to diagnose the source of a patient’s problem—not a salesperson trying to make a sale. Questions an adviser should ask…
- Have you lost any sleep over the market recently? This helps the adviser understand your risk tolerance, which will help him design your portfolio.
- Which of your financial goals is most important to you? Most clients have along list of goals. They want to buy a second home, retire at a certain time, travel, help pay the grandkids’ college bills, leave an estate, etc. These days few can afford to achieve them all.
- What is your history with money? Did you grow up rich or poor? How did your portfolio fare in the last bull market? The current bear market? Good financial advisers understand that the way money has affected your life in the past will have an effect on how you react to financial issues in the future.
- What do you want from a financial adviser? The adviser should understand that financial planning is not one size fits all. It is his/her job to adjust the services provided to fit your needs and desires.
No related posts.
