The 3 Questions to Ask A Financial Planner
Hiring a financial planner is one of the most important financial decisions you will ever make. Here are some tough questions that you can ask a financial advisor so that you can make an informed decision.
Would you expect a salesperson at a Toyota dealership to sell anything but a Toyota, even if another brand, such as a BMW or a Tesla would better meet your needs?
Here are 3 questions to ask a financial planner.
1. Are you a fiduciary all of the time?
A fiduciary financial planner is required to put your interests ahead of his or her own. A fiduciary is prohibited from selling you a financial product such as an insurance policy or an annuity in order to earn a commission.
Some financial advisers are not fiduciaries all of the time, so I encourage you to ask, “Are you a fiduciary all of the time?”
In case you’re wondering, Fortrove Partners is a 100% fiduciary.
2. How are you compensated as a financial planner?
A fiduciary financial planner is only compensated by the advice fee. The advice fee can be a charge to the percentage of assets, or an hourly fee.
I know that you are thinking. Yes, at Fortrove I charge a percentage of the assets or an hourly financial planning fee. There are NO other forms of compensation.
3. Where is my money?
You should be sure that your financial planner uses an established third party custodian to hold your investment accounts. Some examples are Fidelity, Charles Schwab, and TD Ameritrade. Every third party custodian has online access so that you can log into your accounts as you like. Furthermore, third party custodians have SIPC and FDIC insurance for investors.
I use a well-known third party custodian at Fortrove.
Hiring a financial advisor is one of the most important financial decisions you will ever make. When meeting with a financial planner, be sure to ask these questions so you can get the best service and make the best decisions for a secure financial future.
If you have questions, you can set up a free consultation.