7 Questions to Ask a New Financial Advisor - Money Tip Tuesday

When you’ve finally made the decision to sit down with a financial advisor, the next challenge you’ll have is to find one you trust.

There are some questions you can make sure to ask a new financial advisor to feel confident you’ll be happy with their service. 

Links: 

• Check advisor qualifications for free with the Form ADV or state regulator website
• Learn more about Triangle's wealth management services
• Follow our Facebook, Instagram and Twitter pages!
• Learn more about Triangle Credit Union

Transcript:

Welcome to Money Tip Tuesday from the Making Money Personal podcast.  

When it comes to organizing your finances, you may have come to the decision to hire a financial advisor.  

Financial Advisors, help you with higher level financial planning like investing for retirement or for income, helping you select an insurance plan custom tailored to your needs, helping you with long term savings plans like college planning for kids, and even helping you get ready for social security or Medicare.  

A financial advisor is one of your champions and strategists to help you plan the future you want to live. 

But you need to know you can trust them and you need to know what to expect over the course of your relationship. Different financial advisors work for different companies and their roles and expertise may vary according to how or where they work.  

If you’re seeking a financial advisor for the first time, you can ask them any or all of these 7 questions to get a better idea of how they will work with you and help you strategize.  

1. Ask if they are a fiduciary – If they are it means they are working in your best interest, not just to sell you products and services. As a fiduciary, they are legally obligated to act in the best interest of their clients.  
   
   
2.  Ask how they get paid. Some advisors get paid through fees, others, commissions. If you ask, you’ll know off the bat what to expect and the right advisor will be honest and transparent. 
   
   
3. Ask them about their qualifications and other professional experience. What kinds of initials do they have after their job title and what do those mean? Check their professional designations to vet them and make sure they have the knowledge and skills to help you achieve what you want. They may also have professional experience like experience running a business or managing a company that can be helpful if you’re looking for some advice. If you want to research possible advisors, you can check their qualifications through a resource called Form ADV or you can check state regulator websites.  
   
   
4. Ask them about their investment philosophy. This will give you an idea of how they will prefer to manage your investments. After taking time to get to know you and learn more about what matters to you, they’ll start recommending products or strategies. Find out if they favor one style of investing over another and determine if that style aligns with your own investing philosophy. You want to make sure you’re both on the same page, especially when the market takes that occasional downturn.  When you’re working with an advisor you trust, you can be confident that they’re working with your money the way you want them to.  
   
   
5. Ask what your all-in costs will be. Financial services will cost you. You’ll want to have a clear idea of what fees and costs will be associated with your accounts. You’ll be paying for the advisor’s service but ask them about any other fees you should expect to pay so you can make sure you don’t lose more money in fees than you gain through their service.  
   
   
6. Ask them what other services and resources they provide. Some advisors work independently, others work with an organization. This can play a role in what kinds of resources are available to you as a client. Do they offer online tools you can use to monitor your portfolio? What kinds of educational resources do they provide? Additional resources can help you feel confident and satisfied as your financial situation grows more complex over time.  
   
   
7. Ask what you can expect from the relationship. This mainly means how they’ll expect to communicate and what level of involvement they’ll have. Square away with them what their accessibility and contact methods will be. Do they do phone calls, video calls, prefer only to meet in-person? Will they be available after hours in case your schedule is too tight to meet during the work day? Knowing these things ahead of time will give you a clear expectation on how and when to contact your advisor.  

Starting a relationship with a financial advisor is a big step. You want to make sure you’re getting into business with someone who you can trust and will have the right tools and expertise to set you up with a strategy to reach your financial goals.  

If you’re a Triangle member you should check out our wealth management services at trianglecu.org to learn more about the different products and financial advising services available to you.  

If there are any other tips or topics, you’d like us to cover, let us know at tcupodcast@trianglecu.org.  Like and follow our Making Money Personal FB and IG page and look for our sponsor, Triangle Credit Union on social media to share your thoughts.  

Thanks for listening to today’s Money Tip Tuesday and be sure to check out our other tips and episodes on the Making Money Personal podcast.  

Have a great day!