When dealing with your money I know it is hard to have any sort of tangible form of confidence that your resources will be taken care of. This part of the business is where no financial advisor tends to dive into with any future clients or they're existing clients. Without transparency, it is impossible to gain or maintain the trust of a client or a future client.
The financial service industry is one area where this type of business with dealing with clients interests are challenging for clients because they are used to something physical or tangible in return. So I have listed a few questions you should ask your financial advisor before you decide to do business with them. A financial advisor worthy of your business should be able to answer these questions with full confidence, conviction, and enthusiasm.
1. Can you explain how you get paid? What fees should I expect to see?
A financial advisor should be able to explain the way their fees are set up, they should make sure you fully understand them and finally, they should be able to tell you how they get compensated.
2. Do they act as a fiduciary?
This should be an important question to ask as a financial advisor acting as a fiduciary is the first priority of my business. Make sure they explain further that you are considering a firm that has safeguards in place, that your money is protected from fraud and other details. Make sure you do your homework and research them to see if that firm has any infractions against them and the financial advisor you are talking to as well.
3. Will they be available when you need them? Will they be in communication with you?
Listen to make sure they say that they will maintain constant communication with you regarding buy/sell decisions, updates on markets and economy. Make sure they keep you in mind for other services that could benefit you and your family.
4. What is their investment management strategy? Beliefs? How do they manage?
Listen for cues about professional teams that help build a solid process for you, make sure they have a solid disciplined investment strategy for your situation. Make sure their process sounds solid and make sure you understand the way they manage their clients.
5. If you find out they are gone, what happens to your account?
Make sure their services and your account does not stand unmanaged, listen for their procedures if something like this happens to them if they are gone. Make sure they have a plan in place and make sure that they communicate that to you. You should expect a high level of service, it's okay to politely get up and run and not walk away if you don’t feel any of this information is communicated to you.
It is important that you ask these questions, financial advisors should make sure you fully understand every part of the process. Make sure they provide you with a detailed, documented proof of their fees, their standards, your client bill of rights, their code of ethics, and a succession solution. If your advisor cannot demonstrate any of these or do not disclose any part of this you deserve to find an advisor who can.
Rene Gonzales
Senior Representative
c. 512-568-7203
e. Rene.Gonzales@Primerica.com
www.Primerica.com/ReneGonzales
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