What to Expect
If you’ve never worked with a financial professional before, you may be wondering how the whole process works. Fortunately, the whole process is easier than you may expect.
After you’ve exchanged initial phone calls or emails, you’ll likely meet your advisor in person. This is your chance to tell them all about your hopes and your dreams and learn how they can help you. You can get a lot out of this meeting.
Questions to Ask
How will the financial advisor be paid?
There are several cost and fee models that professionals use. Make sure you understand how your professional will get paid and what that means for you.
Financial professionals make their money in one of four ways,:
- Direct fees
- Commissions
- Fees and Commissions
- Salary
How is the financial advisor regulated?
Numerous government regulators and professional organizations oversee aspects of the financial services industry, including state insurance commissioners, state and federal securities regulators, and credentialing organizations.
Will you be working with just the advisor or a team?
Not all financial professionals manage all aspects of their clients’ finances. Find out if others will be involved in providing advice and services and take the time to meet with them as well.
What’s the advisor’s track record?
A good professional won’t mind sharing references if you ask. Also, ask about their track record, particularly if they will be handling investments for you. Very few investors beat the market consistently, but good professionals will be upfront about their strategies and the opportunities they can offer.
Is the financial advisor credentialed and in good standing?
If you found your professional through our financial professional search, you can be certain their credentials are verified. You can also check a professional’s credentials with our designation check. To ensure a professional has no adverse history, such as disciplinary action or criminal conviction, you can turn to the Financial Industry Regulatory Authority (FINRA), SEC, and/or your state securities department and insurance department.
What to Expect in the Short-Term
During your first meeting, your professional will also ask you a number of questions about your finances and your hopes and goals. They’ll also want to gauge your risk tolerance and may have you fill out a questionnaire designed to uncover how aggressive or how cautious you want to be in financial decision-making.
After that first meeting, your financial professional will develop a plan to review with you. The nature of your plan will vary depending on your goals. Nevertheless, make sure you’re familiar and comfortable with it all. A good professional will readily make adjustments if needed.
What to Expect Over the Long-Term
A good financial plan is not a one-and-done proposition. The best professionals will work with you to regularly reassess your situation and discuss how your goals may have shifted. As your life changes, your professional will help you adjust your financial plan accordingly.
In other words, your professional is a partner and should be invested in your long-term success. And the more you’re willing to follow the plans you and your financial professional develop, the more success you are likely to see.