5 Things to Ask Your New Financial Advisor

5 Things to Ask Your New Financial Advisor

5 Things to Ask Your New Financial Advisor 

Working with a financial advisor is a good idea for people of all ages. Even if you are right out of college and are only working part-time, a financial advisor can help you get your finances in order. You can learn about budgets, saving, and even what it will take for you to retire at your desired age. Here are five important things you should ask your new financial advisor.

What is the Fee Structure? 

One of the most important questions you must ask your new financial advisor is about the fee structure. Find out how the advisor gets paid, where the money comes from, and if there will be any other costs involved in your relationship. You should only work with a financial advisor who is 100 percent transparent in all they do for their clients. This is especially important when it comes to fees. It’s also a good idea to ask what portion of the fee is paid to the firm and what portion is paid to the advisor.

What is Your Experience? 

Even though this question appears on the list after the question about fees, it is just as important, if not more important. You should always look into the experience of your financial advisor. Find out the licenses the advisor holds as well as their certifications and other credentials. Some of the best advisors in the industry have a designation with their name.

What is Your Investment Philosophy? 

This is another excellent question to ask your new financial advisor. It helps you understand how the advisor operates within the market and what they tend to believe. Have the advisor explain their approach to investing as clearly as possible and in layman’s terms. Don’t hesitate to ask follow-up questions about anything you don’t understand.

How Do You Communicate? 

How the financial advisor communicates with clients is very important. All of the best financial advisors send proactive communications to their clients on a regular basis. These come in the form of emails, newsletters, phone calls and pamphlets. Proactive communications keep clients informed and help ease their minds about how their advisors are handling their money. Communications can be sent out weekly, monthly, and quarterly.

What is the Succession Plan?

What is the succession plan your financial advisor has in place? This is a very important question to ask someone who is handling your money. What if your advisor leaves the industry? What if the advisor moves to a new firm? What if they pass away unexpectedly? These are all valid questions for a client to have answered regarding the future of their money, should there be a change in the guard with your advisor.

Contact the friendly and experienced staff at Tobin & Collins today to discuss your current finances and your financial future. We are located in Hackensack and can be reached at 201-487-7744. Call today for a consultation or to schedule a meeting with one of our financial advisors.