What Questions Should I Ask My Financial Adviser?

When seeking financial advice, it is important to seek some background information concerning the financial adviser. This background information will enable you to have substantial information for you to assess their abilities and capabilities. One of the key ways of effectively doing this is through objective questions. So, what are the questions that you should ask your financial adviser?


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Image Courtesy – blogspot.com

What Are Your Charges?

The financial adviser should tell you the fees that they charge. This should be done before you enter into a contractual agreement. They should tell you whether they have fixed charges too. This will enable you to know if you if the charges are within your means.

What Are The Services That You Offer?

The financial adviser should list all the services that they offer. This includes letting you know whether he/she is an independent financial adviser or just an adviser. Independent Financial Advisers have a broad range of services whereas an adviser may be somewhat restricted in terms of services and products.

What Are Your Qualifications?

This is a pertinent question to ask. It enables you to establish whether the financial adviser meets the minimum qualifications, credentials, and certifications. As of 2013, all financial advisers were required to have the QCF Level 4 qualification. If you are seeking advice on a specific financial matter, say, pensions, you could go further to inquire if the financial adviser has some specialist qualifications with regard to pensions above the minimum requirement. Asking this question enables you to avoid quacks and also narrows down your options to pick the best financial adviser.

Are You A Fiduciary?

Fiduciaries are people who subordinate their own individual interests to the client’s interests. Asking this question is pertinent. It enables you to establish whether your interests will be given preference. You need to know if the financial adviser will be on your side regardless of the circumstance.

Who Are Your Clients?

This question enables you to find out the clientele of the financial adviser. It enables you to know the kind of clients who are approaching him/her; and if they are seeking the same service as you.

What Is Your Investment Philosophy?

The financial adviser should describe their approach to investment. They should outline it in a simple manner.

How Will My Investments Be Monitored?

The financial adviser should give a clear comprehensive answer as to how your investment will be managed. He/she should walk you through the processes and should also provide a feedback mechanism whereby you get regular reports and reviews of the ongoing investment.

What Are the Risks Associated with the Investment/Product I’m Choosing?

The financial adviser ought to fully disclose the risks associated with a certain kind of investment. They should also disclose the upside and downside of choosing particular product or service.

How Will The Product/Service/Investment Choice Help Me Achieve My Objectives?

This question should move the financial adviser to explain in detail how the choice you have made regarding an investment or product is consistent with your individual goals. He/she should show the extent to which your individual objectives will be achieved with each financial choice.

It is important to ask some objective and viewpoint questions to a financial adviser before entering into any contractual agreement. You should seek as much information by asking pertinent questions that are relevant to your objectives.

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