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Questions to ask your financial advisor before hiring???
Old 12-14-2012, 11:26 AM   #1
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Questions to ask your financial advisor before hiring???

A decent site occasionally (link below), but I'm NOT recommending this article. I was just trying to imagine any FA that would sit still for all this, even if you had 7 figures to invest. Not to mention how few potential clients would know how to interpret good answers.

You do see novice investing looking for what questions to ask, I would not recommend this list...

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QUESTIONS TO ASK YOUR FINANCIAL ADVISOR BEFORE HIRING

Basic Background Questions
* How long have you been a financial advisor?
* What are your credentials? (undergrad, graduate school, certifications, online presence)
* Do you believe credentials matter if one has proven they can properly manage their finances over time?
* How long have you been in your current job?
* What were you doing before your current job and how long were you there?
* How are you incentivized?
* Give me an example of where you helped turn around a client’s financial situation for the better.

Investment Philosophy And Financial Acumen Questions
* What is your fundamental belief on asset allocation? How often? Why should we do it? What signals do you use?
* How would you go about building the right investment portfolio for someone 5 years, 10 years, 15 years, 20 years, and 30 years from retirement?
* If history has shown time and time again that the majority of active fund managers underperform their benchmarks, why do actively managed mutual funds still exist?
* What is your current outlook for the housing market and why?
* Where do you see the 10-year risk free rate going over the next several years and why?
* What do you think is the proper withdrawal rate during retirement?
* Do you think annuities a good idea for someone my age with my income stream and assets?
* Why do so many people bash whole life insurance policies?
* What is the S&P 500 currently trading at in terms of forward P/E and why do you believe the earnings estimates are achievable?
* Where do you see the S&P 500 or Dow Jones over the next 12 months, 24 months, and 36 months and why?
* If there’s a mile-long track and you completed the first lap at 30 mph, how fast do you have to go on the second lap to average 60 mph?

Character Discovery Questions
* Please explain why you are different from other financial advisors?
* What is an area of weakness you need to work on, and how do you plan to get there?
* What was your biggest financial mistake and how did you recover?
* Why do you think people spend more than they earn?
* If you were not a financial advisor, what would you be?
* What is the best means of communication? (to end on a soft note)
Questions To Ask And Think About Before Hiring A Financial Advisor | Financial Samurai
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Old 12-14-2012, 11:29 AM   #2
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* If you were not a financial advisor, what would you be?
I cannot believe the list omitted the most important question: "If you could be any animal you wished, what would you be - and why?"
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Old 12-14-2012, 11:30 AM   #3
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They forgot one question.

Where are your customer's yachts?

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Old 12-14-2012, 11:56 AM   #4
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I cannot believe the list omitted the most important question: "If you could be any animal you wished, what would you be - and why?"
Boxers or briefs (or thongs or granny pants)?
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Old 12-14-2012, 11:58 AM   #5
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Old 12-14-2012, 12:13 PM   #6
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Paper or plastic?

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Old 12-14-2012, 01:04 PM   #7
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Perhaps it's a perseverance test to see how much the FA wants the business.
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Old 12-14-2012, 02:11 PM   #8
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Perhaps it's a perseverance test to see how much the FA wants the business.
Imagine if somehow the potential client had managed to conceal his/her assets until after all the questions - only to reveal it's $8500...
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Old 12-14-2012, 05:04 PM   #9
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What about "your favorite color?"
That would be the clincher, I think.
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Old 12-14-2012, 06:59 PM   #10
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Old 12-16-2012, 06:36 PM   #11
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What's your sign?

And when can I retire?
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Old 12-18-2012, 01:17 PM   #12
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Old 12-18-2012, 02:57 PM   #13
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Air speed of an African Swallow?
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Old 12-18-2012, 05:00 PM   #14
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Imagine if somehow the potential client had managed to conceal his/her assets until after all the questions - only to reveal it's $8500...
Oh my! I guess the interview process would come to an abrupt end at that point.
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Old 12-18-2012, 06:14 PM   #15
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"What does it mean to be a financial advisor in the midst of history?"
Liberal arts graduate?

Ha
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Old 12-19-2012, 07:35 AM   #16
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Can I get a copies of your last ten years of tax returns, credit report and your personal financial statements showing your net worth and where you have your money invested?
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Old 12-19-2012, 08:41 AM   #17
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Why are you still working?
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Old 12-19-2012, 09:08 AM   #18
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I cannot believe the list omitted the most important question: "If you could be any animal you wished, what would you be - and why?"
+1
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Old 12-19-2012, 09:28 AM   #19
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Imagine if somehow the potential client had managed to conceal his/her assets until after all the questions - only to reveal it's $8500...
Well, the only kind of FA I would consider using is a fee-only adviser who only charges a fixed hourly rate for a defined scope of work, NOT one who charges a % of assets & then tries to sell you some "product". He/she wouldn't care about your nw.
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Old 12-19-2012, 04:33 PM   #20
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Air speed of an African Swallow?
There are 47 varieties of African Swallows. Which one?

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