Following are some questions I suggest asking a potential financial adviser or wealth manager before deciding if you feel they have earned the right to talk to you about your money:
- Do you use a recognized and independent third-party custodian to hold your assets?
- How long have you worked in financial services and in what capacity?
- What is your academic training–undergrad and grad school?
- Have you earned either your CFA, CFP, CAIA and/or CPA designations?
- What kind of continuing education are you engaging in to stay abreast of developments in your field?
- Do you utilize an active or passive/evidenced-based approach & why?
- What fees are your clients charged–all in, from your fee down to embedded fees such as markups on fixed income purchases to management fees on recommended funds and any platform/custodial fees?
- Is the fee I am paying the only compensation you receive?
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What are the financial consequences of cancelling your program and selling out of the investments I have made with you–a
re there any lockup periods, surrender charges, withdrawal penalties, account closing fees or any restrictions to move my account at any time?
- Do you report a client-specific time-weighted return each quarter?
- Do you live a frugal lifestyle?
- Do you work under a suitability or fiduciary standard?
