If you’re reading this article, it’s likely that you’re a high networth individual with retirement funds in the millions. You may even be a billionaire.
Regardless, if you have millions of dollars at your disposal, it makes sense to hire an experienced financial advisor. But are you asking the right questions? The following are several helpful questions to ask your financial advisor.
What is your approach to asset allocation?
How have you invested in the past?
What sort of experience do you have in this role?
Can you tell me more about your education and training?
How often do you meet with clients?
How are you compensated for your advice?
Would I have direct access to you if I needed it?
What is your approach to asset allocation?
Do you understand the scope of my financial portfolio?
Do you have a succession plan in place?
On a scale of 1-10 how would you rate your happiness with your career?
If I asked for a list of your clients who live where I live, how many names would be on that list?
Can I see a copy of your firm’s ADV brochure and Form CRS? Do you have other professional certificates or designations outside of being a financial advisor?
How long have you been doing this sort of work? What made you decide to pursue it as a living?
How often and by what method do you like to communicate with your clients?
Who are your role models, professionally and personally? What makes them stand out to you and why do you respect them so much?
How would you describe the firm’s risk tolerance philosophy?
How often do you and your team meet to monitor investment performance?
What is your philosophy on diversification?
How much do you charge in fees? Section: Why did you start your own firm?
What is your experience with investments like this one before?
Where and when did you receive financial training, and how often do you keep up to date on new developments in the field?
What is your biggest strength?
What is your biggest weakness?
Do you specialize in any particular areas of investment management?
On average, how many years do your clients stay with you and why do they leave?
Do you have a fee based service or commission based service?
How is your firm compensated?
How many clients do you have?
What is your investment philosophy?
What are the top three things we should be thinking about right now?
Do you hold any securities or other investments for yourself or for any firms or organizations that you might have a personal interest in?
Conclusion
A good financial advisor can help you make the most of your money. But there are things you should know before you engage a financial advisor, including what questions to ask.
When you have finally amassed enough wealth to enter the realm of high net worth individuals, you will want to make sure that your financial advisor is on the same page as you are.
Finding a great financial advisor is not an easy task and one should take their time to fully understand the process and people involved.