The 5 Best Questions To Ask Your Financial Advisor In 2021
There are over 300,000 financial advisors in the U.S. with no standard requirement to earn the title(s): financial advisor, financial planner, wealth manager, etc. How would you feel about going to a doctor who was never sworn under the hippocratic oath to preserve and protect life? If that idea makes you uncomfortable, this blog is written for you. Learn to ask these 5 questions in 2021 to make sure you find an advisor that is right for you.
1) Are you a full time fiduciary?
For those of you who are wondering what fiduciary means, it is basically the financial planning equivalent of a doctor’s hippocratic oath. A planner who is sworn under the fiduciary oath is required to put your interest above theirs, to eliminate conflicts of interest, and to assure you a better planning experience. However, there’s a catch here. Financial Planners can be fiduciaries, but not act as a fiduciary 100% of the time.
Being a full time fiduciary prohibits the planner from receiving compensation from anyone other than you. Unfortunately, most advisors can not make you this promise. Make sure you find a full time fiduciary to be assured that your advisors are making you money, not making money off of you.
2) What experience do you have to navigate the world of financial planning?
How much does professional certification mean to you? If you want the best of the best in the financial planning industry, you need to find a Certified Financial Planner (CFP®). Only 25% of financial advisors in 2021 hold the CFP® designation (Source: CFP.net), and for good reason. CFP® Board requirements are much higher than simply passing a securities exam. A college degree is also a requirement for CFP® Professionals. At Shore Financial Planning, I have 25+ years of experience in the finance and accounting industries. Read more into my blog for details on how to find the most certified advisor you can by clicking here.
3) What are my costs in this, how are you being paid, and where can I see this all on paper?
Checklist to ask financial advisors helpful information thanks
Thanks for sharing it with us! I like how you emphasize what are the questions we should ask a financial advisor. Finding the right financial planner Newcastle helps us to understand our financial health and how to manage our money wisely.