3 Essential Questions You Must Ask Your Financial Advisor

When you want to manage your portfolio or are unsure of what to do with your large inheritance, taking assistance from a financial advisor is an excellent idea. However, opting for a financial advisory service is not a cakewalk. You have to look out for financial advisors who try to fill their pockets rather than providing you the right advice for your investments and retirement plans. Therefore, it is extremely important to ask questions from your financial adviser to be sure of getting the best advice. We have shared a few questions here:

How do they invest?

Only a few individuals ask their adviser about investing money. When you ask them about investment, you get a better picture of how they will manage your portfolio. You cannot expect them to reveal their personal portfolio, but if they share their personal strategies with you, they are likely to implement the same for your portfolio. 

How much do they charge?

Always ask what their costs are so that you both stay on the same page. If your advisor isn’t avid for a commission on products, they are likely to implement the best strategies rather than just be a salesman. Most of the professionals charge 1% of investments which is managed annually. Keep in mind investments through an advisor include commissions arranged with the investment company.

What are their qualifications?

Always learn about the certificates that your advisor holds. Mainly, look for A Chartered Financial Analyst (CFA), A Certified Financial Planner (CFP), or A Certified Public Accountant (CPA). Also, seek an advisor that has a decade of experience in dealing with clients. Check for the records to make sure there don’t have issues with regulators. You can also ask they have been sued in the past. These are important to make sure your hard-earned money is in safe hands.

When you want to save your investments in the long run, make sure to do your research and ask questions from your financial advisory service.