Financial Directory

Questions to Ask Your Professional Financial Advisor

Finding a financial advisor to assist you in managing your hard-earned money doesn’t have to be a difficult task.  You want to be sure that your money is in the hand of a competent and trustworthy person; a financial planner can provide invaluable advice but only you should decide how your money is invested and spent.  To simplify your search, ask financial savvy close friends and family members for recommendations or contact the National Association of Personal Financial Advisors (NAPFA.org) or the American Institute of Certified Public Accountants (AICPA.org) to find a list of a fee-based (rather than commission based) advisors in your area.  Here is what to look for and questions to ask when meeting and screening for your financial advisor candidates for the first time:

• What is your educational experience?  (The answer should be in business or finance) 

• Do you sell life insurance or trade in options, futures, or commodities?  (The answer should be no, no, no, and no) 

• Ask to be provided at least 3 personal references from current clients.

• Ask for a current copy of the firm’s liability insurance. 

• Can you give specific strategies I can implement on my own?  (The answer should be yes) 

• Can I review your firm’s income statement and balance sheet?  (The answer should be yes) 

• Have any of your licenses or certifications ever been suspended or revoked?  (The answer should be no) 

• Have you personally ever filled for bankruptcy?  (The answer should be no) 

• Have you ever been reprimanded by any professional society or state regulatory agency?  (The answer should be no) 

• Look for a financial advisor who handles all areas of financial planning such as investment, tax, retirement, estate and insurance planning. 

• A good financial advisor should take notes and ask you to fill out some forms assessing and detailing your financial history, status, and goals.