What Should You Be Asking Your Financial Advisor?
A financial advisor, like the ones at WeberMessick, provide financial advice to their clients. This advice can range from making the most appropriate investments possible to estate planning. The term “financial advisor” is actually a generic term used to describe many different types of financial professionals including stockbrokers, insurance agents, estate planners, bankers, investment managers, and financial planners. But before choosing your financial advisor to oversee your many financial transactions, there are some questions you should ask.
Are You a Fiduciary?
A fiduciary is a person who has placed the clients’ interest ahead of his or her own. A fiduciary must also disclose any fees associated with their work including how they are compensated and if there are any conflicts or potential conflicts of interest that may influence a person’s decision to use their services. In comparison, a non-fiduciary financial advisor may receive a commission in exchange for selling you an investment that may not be in your best interest. Non-fiduciaries do not have to tell you how they profited from this sale. A fiduciary may work for a fund that only allows him or her to sell the fund’s proprietary products but if they disclose it, it is allowed.
How Much Do You Charge for Your Services?
If you do not see the information on the financial planner’s website, be sure to ask whether there is an initial planning fee, if they charge a percentage of assets under their management, or if they make money from selling a certain product. Not only should you know how much a certain service will cost, but it could also help you determine whether they have an incentive to sell you things.
What Services Does Your Firm Provide?
While it is important to find out what services your financial advisor provides, this question will also help you find out what type of services your financial advising firm doesn’t offer. Some investment advisors may only provide you advice on investments while others can do a comprehensive financial plan. Make sure to choose a financial advisor who suits your needs.
What Kind of Clients Do You Specialize In?
This question can help you find a financial advisor who can fit your specific need and situation. Some financial advisors have a specific type of client they can help like newlyweds or divorcees. If you have a specific interest like charitable giving or socially responsible investments, finding a specific financial advisor who specializes can help you get on track.
When planning to see a financial advisor, there are some questions you should ask before meeting with them. A financial advisor can help with all your financial needs from estate planning to saving for your child’s future. For more information on seeing a financial advisor at WeberMessick, call us today!
Answering All of Your Questions with WeberMessick
Want more information on choosing a financial advisor? Contact WeberMessick today! Since 1984, WeberMessick’s team of CPA’s and financial advisors have been helping individuals and businesses throughout the Maryland and Delaware devise a plan for their finances. With a “client-first” philosophy, WeberMessick has been helping their clients achieve financial success. Whether it is through financial planning or our accounting services, WeberMessick is always here for you!