Choosing a financial advisor is a huge decision and one you shouldnâ€™t make without ample information. Hereâ€™s a link of critical questions to ask as youâ€™re meeting with potential advisors.
If you’re a regular reader of Physician’s Money Digest, you know that we’ve often discussed the pros and cons of working with an advisor. It is undoubtedly a big decision, and one that requires a lot of thought about your financial goals, your investing style, and your level of trust in putting another person in charge of some financial decisions.
But even after you’ve made the decision to work with an advisor, many people struggle to choose the right advisor. Here, then, are 20 questions you should ask your advisor before cementing the relationship. Keep in mind that if you meet a person who answers every one of these questions exactly how you’d like them to, that might in itself be a little suspicious. If they’re being truthful, please forward me their contact information. If not, find a different advisor. One way to tell is to simply ask for references and then be diligent about contacting those references. Working with an advisor can be as important a relationship as working with a physician, so put the same rigor into your choice that you would in choosing your own doctor.
Obviously, you can prioritize these questions according to what’s most important to you. And this is not by any means a comprehensive list. But it should be enough to get you started. The important thing to remember is that just like in any job interview situation, interviewing an advisor is a two-way process. The best advisor-client relationships are ones in which there is a cultural fit and a mutual trust.