10 Questions You Need To Ask Your Financial Advisor ASAP

Nobody is 100% certain of what the future might bring. It's important to have a solid financial plan for what is coming. But if you're like most people, you may not know where to start. That's where your financial planner comes in. A good advisor can help you create a plan that meets your specific needs and goals. 

Before you work with an advisor, there are some questions you need to ask to ensure the quality and accuracy of their assessment. Keep reading for a list of the most important questions to ask your financial advisor. 

Begin By Asking Your Financial Advisor These Questions 

Are You A Fiduciary?: 

By law, financial planners must act in their clients' best interests. However, not all advisors adhere to this standard. Some may have other agendas and may only recommend products that generate the highest commission for them, regardless of whether or not it's the best option for you. 

Make sure your advisor is a fiduciary by asking them point-blank. If they hesitate to answer or avoid the question altogether, that's a major red flag. 

What Are Your Qualifications?: 

Next, you'll want to ask about an advisor's experience and credentials. How long have they been in the industry? Do they have any specialties or areas of expertise? What professional designations do they hold? 

The more experience and credentials an advisor has, the better. They should also be able to easily answer any questions you have about their qualifications. 

How Do You Get Paid?: 

It's important to understand how your advisor is compensated for their services. Some charge hourly rates, while others receive commissions on the products they sell. Some may even charge a combination of both. 

Be sure to ask about the fees you'll be expected to pay and how your advisor will be compensated. This will help you avoid any potential conflicts of interest down the road. 

What Is Your Investment Philosophy?: 

Every investor has a different risk tolerance and set of goals. Your advisor must understand your unique needs before making any recommendations. 

Be sure to ask about an advisor's investment philosophy and how it aligns with your risk tolerance and goals. If they're not on the same page, they may not be the right fit for you. 

What Are The Potential Risks And Rewards Of The Investments You're Recommending?: 

No investment is without risk, but some carry more risks than others. 

Before making any decisions, ask your advisor about the potential risks and rewards of the investments they're recommending. This will help you make an informed decision that's right for you. 

What Are The Fees And Expenses Associated With The Investments You're Recommending?: 

As with any investment, there are costs associated with buying and selling. These include brokerage commissions, management fees, and other assorted expenses. Ask your advisor about all the fees and expenses associated with the investments they're recommending. This will help you avoid any surprises down the road. 

What Is Your Experience With Investing In (Industry Or Type Of Investment)?: 

It's important to work with an advisor who has experience investing in the types of products you're interested in. For example, if you're interested in buying real estate, you'll want to work with an advisor who has experience investing in that asset class. 

Be sure to ask about an advisor's experience with the industry or the type of investment you wish to get involved in. This will help you avoid any potential pitfalls. 

What Is Your Track Record?: 

A good financial advisor should have a solid track record of success. Be sure to ask about their past performance and how they've helped their clients achieve their financial goals.

What Is Your Process For Making Investment Decisions?: 

It's important to understand an advisor's process for making investment decisions. This will help you know what to expect and whether or not they're a good fit for you. Be sure to ask about an advisor's investment decision-making process. This will help you understand their thinking and whether or not they're a good fit for you. 

What Other Services Do You Offer?: 

Many financial advisors offer other services, such as tax preparation, estate planning, and retirement planning. If you're interested in these services, ask about them.

Get Professional Wealth Management With Us

Knowing the critical questions to ask a financial advisor in your first meeting is crucial to a successful working relationship. At Womack Investment Advisers, we take the time to get to know you and understand your priorities and values. 

We'll help you develop a custom wealth management strategy that addresses the most important issues for you. We can assist you in determining the best retirement techniques to preserve your money and the best investments to help you accomplish your objectives.

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