How to Interview a Financial Advisor – eBook
Investors do not deliberately select bad advisors. And yet millions of investors have bad advisors. What went wrong?
These investors made bad decisions based on information that was communicated to them when they interviewed and selected advisors.
Investors used interviews to gather information that helped them select the best advisors. Unfortunately, a high percentage of advisors viewed the interviews as a sales activity.
It is you and your assets versus the advisors who need your assets to make money.
Here are five things to consider before interviewing and hiring that advisor….
- You should always look for the most competent financial professional vs. the most conveniently located to you.
- Word of mouth referrals can be very dangerous…think of Bernie Madoff’s victims.
- You should interview at least three financial professionals. Having a choice is very important so you can compare apples to apples. Use the same interview questions for each advisor.
- Be sure you obtain written documentation from each advisor regarding his/her background, experience, credentials, business practices, compensation, conflicts of interest, etc. Having this in writing is key. Also consider doing a background check on the person to ensure there are no hidden skeletons in the closet (prior convictions, bankruptcy, liens, compliance issues). Know who you are hiring!
- Don’t hire a financial advisor or financial planner just because they are nice and personable. There’s nothing wrong with liking your advisor, however, you should never hire just because you like them. Being nice doesn’t always equate to competence. Many highly competent financial professionals are very quantitative and detail oriented. I’d much rather have this skill set managing my financial future, personally!
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