Questions to ask a financial advisor

[cyclistca]

Tomorrow I have a financial advisor coming over to my place. What should I look for in a financial advisor? What kind of questions should I ask him? Right now I'm doing business with my uncle but I'm not really happy with him. Thought it was about time to look into other options.

Personal info
- Male early thirties
- Canadian
- Good job at a high tech comp

 

[cyclistca]

Bump

 

[Champo41]

Umm...shouldn't you have thought of this before you asked him to come over?

 

[kranky]

Find out how he is compensated. Does he charge you a fee for advice, or does he get a commission on what you invest with him? If commission, you'll probably only be offered the products he sells, even when other products might be better for you.

What is his educational background? His experience?

I think a good advisor should be asking you a lot of questions too. If not, how can he know what investment goals you are trying to achieve?

 

[Michael]

kranky is 100% right - the very first question to ask is:

How are you compensated?

If the advisor is compensated via commissions from products they sell, then there is a built in bias that could work against you.

For me, the important items I would want to know are:

1) Experience (including any credentials)
2) Work load - is it the advisor I will mainly deal with, or a staff member
3) Recommendations from others
4) How often will you meet to discuss your situation

I would strongly advise against giving the advisor any ability to get direct access to your funds. I have seen it time and time again where an advisor has stolen all the money entrusted to them.

Michael