When you’re with your prospective advisor, there are some questions you should ask. Let’s get one thing very clear, though, before we start. Don’t forget, even for a minute, that you’re the person who will be hiring the financial advisor, and you’ll be paying his fees. It’s not the other way around. Many people are intimidated by professionals, because they feel stupid or uninformed around them. Hello! That’s why you’re meeting with the advisor in the first place. It’s understood that he has more expertise in the finance area than you do, and hopefully you can benefit from his knowledge. That’s the point, right? You don’t need to im-press the financial advisor; he needs to impress you. Some questions you should ask the financial advisors you consider are listed here:
How long have you been in this business? As with most professions, experience is important. You want to find someone who fully understands the financial industry and all its nuances.
How have you prepared for this job? You’ll want to know about your potential advisor’s education and previous job experience. What was your job before you became a financial advisor? Look for a logical progression, such as moving into a financial advisor position from a banking job. If the progression doesn’t seem logical, be sure to ask for an explanation. Can you give me the names of some other clients, please? References are very important. If you talk to other clients and don’t get all the information you’re looking for, don’t be afraid to ask the candidate for more names.
Finding a Financial Advisor Online
There are lots of online brokers these days, with more and more showing up all the time. If you’re going to use one, do your homework and compare what different brokers offer, not just what fees they charge. Look for quality trade executions, online newsletters and reports to keep you informed about what’s happening in the financial world, 24-hour telephone service, personal access to representatives in case you need face-to-face service, and customized stock alerts to let you know when something is happening that might affect your account. Also, be sure to find out how you’ll be able to access your accounts in the event that you don’t have a computer handy. Is there an interactive voice response phone system? Or can you access through a PDA? Some popular online brokers include Ameritrade at wwww.ameritrade.com, Datek Online at www.datek.com, Fidelity Investments at www.fidelity.com, Waterhouse Securities at www.waterhouse.com, and E*Trade at www.etrade.com.
Go With the Gut
There’s one more important factor when you’re choosing a financial advisor: your gut. Some people click, and others don’t. Although you should never hire somebody just because you like him, you probably shouldn’t hire somebody whom you just don’t like. If you like somebody, and you’re assured that he’s professional and good at what he does, then it sounds like you’ve got a match. You need someone who will take the time to talk with you, teach you, and be there for you. If you don’t like someone, it probably will be very hard to work together effectively, even if he’s the best financial advisor in the business. Ultimately, the decision is up to you. Consider all the factors, throw in your gut feeling, and go for it.
