Ten Questions to ask your Financial Adviser NOW - Part Two
The second in a two part series, FundSource looks at ten questions you should ask your financial adviser, especially as our financial environment becomes more complex.
Thursday, June 3rd 2004, 7:28AM
by The Landlord
We can't tell you exactly how to find the perfect financial adviser. But the following questions can help you find a new adviser or get the most from your present advisor. And even if you think you already know the answers, you're almost guaranteed to profit from asking again.6. How are you compensated for the work you do for me? Do you receive any compensation or incentives from any product or service you recommend?
In some ways, this is one of the most important question you can ask, because it can expose potential conflicts of interest. Just bringing up the topic puts an adviser on notice that you know the potential for a problem. Whatever type of compensation your advisor receives, make sure you understand it in advance.
An advisor paid on commission can have a direct financial stake in what you buy and (in some cases) a stake in how rapidly your portfolio turns over. There are excellent financial planners either way but it should be important for the investor to understand.
7. Are you currently invested yourself in those investment you are recommending to me?
Read More - Opens in a new window
| « Building consents plummet | MERs and other managed fund expenses » |
Special Offers
Commenting is closed
|
|
Printable version |
|
Email to a friend |
