Managing your financial situation can be a big undertaking. From retirement to investments to estate planning, there can be a lot to consider and many decisions to make.
It’s natural to want and need some expert assistance in coordinating some or all aspects of your financial journey. But where and how do you start the search? What questions should you ask? Below are six questions to ask anyone you are considering for the role of financial planner, investment manager or trustee:
1. What services do you offer?
Understanding the areas of planning an advisor can help you with is important. By asking this question, you’ll learn if they specialize in just one area, or if they or their organization can help with a variety of areas, such as investment management, fiduciary services (estate settlement, trustee services), insurance needs, and more. You should also learn whether the advisor partners with other providers for the services they offer, as well as the services they don’t offer.
2. How are you compensated for your services?
Advisors can be compensated in a few different ways, including a percentage of assets under management, a commission on a purchase or sale transaction, a flat fee, or a retainer fee. In the interest of transparency, it’s important to understand how your advisor is compensated.
3. Do you adhere to a “fiduciary standard”?
A fiduciary is someone with a legal duty to put the client’s interest above their own. This standard of care generally requires advisors to disclose conflicts of interests they may have. Failure to act in a client’s best interests can result in legal liability for the fiduciary advisor. This also means a higher standard of care for investment advisors than the traditional commission-based model, which requires only that investments are “suitable” for customers.
Trust departments at banks are general fiduciaries; many investment managers and financial planners may have a limited fiduciary duty with respect to investments they recommend.
4. What qualifications do you have?
It’s important to understand the expertise of your prospective advisor. Asking about their qualifications, specialty interest areas and/or credentials can give you better insight into whether they are the right fit for you. Do a little research to determine if there are specific areas of expertise you may want or need from an advisor. If the advisor is part of an organization that employs a team approach, what are the qualifications of the other team members?
5. Are you available for an initial/introductory meeting?
Don’t discount the value of a face-to-face connection. Advisors are individuals with unique personalities, “bedside manner” and areas of expertise. One size does not fit all. Make sure you’re comfortable with the person or group of people you are dealing with. After all, if you don’t enjoy sitting across the table from the advisor, it is unlikely you will be fully invested in or satisfied with the relationship.
6. What is your career journey?
Asking this question can help you understand where the advisor is in their career and may give insight into specialty interest areas or background you wouldn’t normally have learned.
Are you ready to begin working with a trusted partner as you move along your financial journey? Connect with a Bankers Trust Private Client Wealth Advisor today.
Non-Deposit Investment Services are not insured by the FDIC or any government agency and are not bank guaranteed. They are not deposits and may lose value.