With the recent trends in the financial markets, there’s an increasing demand for working with financial professionals. As the demand grows, we’re seeing a significant number of people who had subpar experiences working with someone who they thought was a good fit. We dedicated this episode to reviewing a few questions you can ask prospective financial advisors to make sure they are capable, qualified, and trustworthy.

 

 

Show Notes

[02:14] Background – Grant talks about the conversation that led to today’s topic and why it’s essential to be cautious when you’re looking.

[07:19] Compensation – Different ways financial advisors get compensated and how the method of compensation affects the service provided..

[14:08] Referral Fees – It’s a fairly common practice for financial advisors to take referral fees when they refer you to other professionals. Grant explains why you should know whether they get paid for referrals.

[15:32] Fiduciary Standard – How to find out whether your prospective financial advisor has a legal obligation to act in your best interest at all times.

[19:11] Fiduciary Oath – Confirming that your financial advisor will act in your best interest at all times.

[20:20] Regulations – How to check whether they are disciplined by state regulators.

[22:17] Comprehensive Financial Planning – Some financial advisors help you make decisions surrounding the entire scope of your financial household, while others may only help you manage your investments.  Grant explains how to figure out the scope.

[25:07] Is This a Good Fit? – Other means of deciding whether your prospective financial advisor is capable of helping you.

[27:08] Business Continuity – What happens in case of a sudden absence of your financial advisor.

[29:07] Assessing Experience – Professional qualifications you can use to assess the experience of a financial advisor.

[32:43] Finding the Best Match for You – Tips for making sure your prospective financial advisor is a good fit for your needs.

 

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