Working with a financial advisor
II Types of Financial Advisor Compensation
- (A) Commission-Based
- (B) Fee-Based Advisor
- (C) Fee-Only Advisor
III Other questions you should ask a financial advisor:
- Are you a fiduciary?
- How often do we meet?
- What is your specialty (i.e., money management, financial planning, retirement planning)?
- What are my “all-in” costs?
- What services are included?
- What is your investment methodology?
- What asset allocation strategy do you use (i.e.; diversification)?
- Will you meet with my tax professional to help determine a long-term tax strategy?
If you feel anxiety about approaching a financial professional, remember they depend on developing relationships with their clients. Interviewing Financial Advisors is a first important step to finding an agent you feel comfortable working with.