How To Interview A Financial Advisor
An interview gives you the perfect time to ascertain whether the financial advisor you are considering is the right match for you. There are certain questions that are an absolute must, no matter what your portfolio size, income levels or location. Ask about the educational qualifications of your advisor. Does he have a college degree? Does he have credentials from any organization in his field of work? The National Association of Financial Planners offers a NAFP Registered Financial Planner certification, and there are other certifications too like the Certified Financial Planner and the Chartered Financial Consultant. Ask him for a list of references and their phone numbers. He should have experience in this field, preferably more than a couple of years. Inquire about his investment strategy. How does he plan on making investment decisions for you, and what factors does he base these on? What services does he offer? Does he include special services that you may need? If you need an extensive list of services, you can also expect to pay a considerably higher fee. What sort of compensation package does he prefer? While many financial advisors prefer a fixed fee, others quote an hourly rate, or get a commission from financial products that they recommend.
The interview will be taken as an opportunity to get to know you better by the financial advisor too. He needs to know what your goals and aspiration are, and you should be able to articulate these to him loud and clear without any doubts. For this purpose, spend some time before you meet with the financial advisor, defining your long term and short term goals. Your long term goals could be more funds-intensive like buying a house, or traveling after your retirement. Your short term goals could be expanding you business in the near future. The more the financial advisor knows about your goals, the better he is able to determine the sort of advice and commitment that you're looking for. Be prepared to give him well thought out and fleshed out answers that give him the right picture of what you want your post retirement life to look at. Saying, "I want to be able to secure my future" doesn't say a lot.
Never make a decision on hiring a personal financial advisor before you conduct an in depth interview with each. To get started on better financial planning, fill out the form. You'll hear from the top financial advisors in Phoenix. Using our financial advisor search system takes only a minute of your time, and gives you a lifetime of security in return!