- Do you follow a fiduciary standard?
Since the US department of labor issued its fiduciary rule in 2016, most financial advisors should be, where if they are offering retirement advice, they should be on their client’s best interest instead of selling products where they would get a cut. However, you still want to ask that question. It also shows that you have been doing your homework!
02. Are you a fee-only financial advisor?
If an advisor tells you there’s no charge for the advice they’re giving, ask them how they will be compensated. It’s recommended to have a fee-only financial advisor.
03. How often will we meet?
Some financial advisors have it set up where you meet with them once a year, twice a year, quarterly, etc. With all changes that can happen within just a couple of months ( the pandemic is proof of that), it’s important to know how often you will be in contact with your financial advisor, and whether or not you can email them or call them easily.
04. What’s your investment philosophy?
It’s important to know how your financial planner will invest your money during a pandemic, whether or not they sell during a panic, etc. Ask them how they have been investing during the pandemic (selling? holding?, etc).
05. Who is your ideal client?
Some financial planners only work with doctors. Other ones only work with high-income earners, and other ones with everyone. It’s important to work with a financial advisor who is familiar with situations like yours, where they are familiar with high-income earners vs six-figure debt. Keep in mind that some financial advisors tend to focus on whole life insurance, disability insurance, and not debt repayment. Just do your research.
Caroline Clerisme, DMD
This post is for informational and educational purposes only. It does not constitute tax, investment, or legal advice. If you are seeking such advice, you should seek the assistance of a qualified professional.
Leave a Reply