Selecting A Financial Advisor
Here are questions you may want to ask a potential financial advisor. The order isn't important.
Why did you become an advisor?
Since the financial sector ranks low in trust, becoming an advisor is rarely a childhood dream or even Plan B.
How long have you been a financial advisor?
Experience makes a difference as long as the experience keeps growing. An advisor with 20+ years of experience may be stale. A new advisor may not have enough practical experience.
What credentials do you have?
Nothing stops an advisor from earning relevant designations. The lack of credentials may signify laziness or lack of intelligence. You rarely pay more for the extra expertise. Here are common credentials.
How do you keep current?
Credentials and experience are about the past. You're hiring an advisor today. If their skills are current and they truly care about helping clients, they can post valuable content online.
How many clients to do you have?
Too many may reduce the service you receive or ean that you deal with junior staff. Too few may mean a beginner. Is there is a way to verify the answer?
What is the profile of a typical client?
Some advisors specialize and others generalize. Which prospects do they reject? If they take any client, the service you get may suffer
What your goals for yourself?
An advisor helps you reach your goals. Advisors have goals too. What are they? You'll get a sense of your advisor's openness.
Other lists
- 10 questions to ask a financial advisor
(Entrepreneur, May 2009) - The five questions you need to ask your financial advisor right now (Money Morning, Jun 2012)
- Questions to ask when picking a financial advisor (New York Times, Jul 2012)
- Five tough questions to ask your financial adviser (Your Money, Sep 2010)
Government
- Investment advisors: what you need to know before choosing one (SEC)
- Questions to ask when choosing a financial advisor (OSC) [PDF]
- Assessing your financial professional (Federal Consumer Agency of Canada)
