# Financial/Wealth Advisors - What to ask



## njbr (Apr 15, 2011)

I'll be meeting with at least two (maybe more) Financial/Wealth advisors this week and was wondering what kind of things I should look for wondering if anyone here has some recommended questions I should ask ?

thanks !


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## FrugalTrader (Oct 13, 2008)

Here's an article that may help:

http://www.milliondollarjourney.com/financial-advice-or-financial-quackery.htm


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## andrewf (Mar 1, 2010)

I'd suggest asking how are they compensated, what factors do they consider in creating a financial plan, how they go about creating portfolios for their clients, what kind of on-going service you will receive after the initial portfolio creation.


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## I'm Howard (Oct 13, 2010)

I have set up friends with FA's who are very well known,, have stellar reputations, are featured in the news media, all have proven to be major disappointments.

ETF's are the way to go, for even the novice investor, you plan your portfolio allocation, no one will do that for you, they will just take direction.

FA's are sales people, you are their source of income.

I laugh when people tell me their FA is really good, because He is so nice, taht is like choosing a Surgeon for his personality. unless you take the time to educate yourself before you start spending that money, you are a lamb just waiting to be shorn.

If you are not interested Buy I, 3 and 5 year GIC's.

http://www.financialwebring 

This is a sister site to million dollar journey, both are good support mechanisms


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## steve41 (Apr 18, 2009)

When he asks to you to provide him with data so he can craft a financial plan, does he ask for more than just a few simplistics such as age, salary, when you plan to retire, current savings.

If he asks for additional details such as outstanding loan data, your pension details, real estate you may own, if and when you plan to sell it, potential future windfalls in the offing, goals such as a major planned expenditure, do you wish to die broke at some future age, or do you wish to pass on a certain estate.... then he may be putting together a real financial plan. If not, then he is possibly just dispensing investment advice and not true planning advice.


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## njbr (Apr 15, 2011)

Thanks again everyone ! I'm so glad I found this forum, great answers as usual.


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## Oldroe (Sep 18, 2009)

You need to state what you want. Income or growth or both.

They will do a risk assessment. This is a legal document that allows them to invest in more and more risky investments. Keep a tight rein on them.

So now they throw out a bunch of bull usually a pie chart or something. Get exactly were your money will be. Names and %'s

Now get exactly how much they make, up front money and trailing fees. 

Then bring it back here.


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## leoc2 (Dec 28, 2010)

I am meeting with a FEE ONLY financial advisor next week. He won't get commissions recommending his products for my financial plan... or at least that is what I am hoping for. Has anyone here had any experience with a FEE ONLY advisor?

Thanks in advance.


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## njbr (Apr 15, 2011)

leoc2 said:


> I am meeting with a FEE ONLY financial advisor next week. He won't get commissions recommending his products for my financial plan... or at least that is what I am hoping for. Has anyone here had any experience with a FEE ONLY advisor?
> 
> Thanks in advance.


Good question ... and to add to that, what would the expected range or rates be for a fee based advisor ? 


... and we need more cowbell ! (nice avatar  )


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## Guest (Apr 18, 2011)

I'm Howard said:


> http://www.financialwebring This is a sister site to million dollar journey, both are good support mechanisms


Nit ... http://www.financialwebring.org/ ... thanks, nice link, some reading material for tomorrow.


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## humble_pie (Jun 7, 2009)

here is a checklist of 35-40 questions to ask a potential investment advisor:

http://www.investmentcounsel.org/findafirm.asp?id=42


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## MoneyGal (Apr 24, 2009)

leoc2 said:


> I am meeting with a FEE ONLY financial advisor next week. He won't get commissions recommending his products for my financial plan... or at least that is what I am hoping for. Has anyone here had any experience with a FEE ONLY advisor?


An unlicensed advisor (that is, someone who is not registered with the applicable securities commission for their province) will not be able to provide investment advice beyond relatively generic asset allocation recommendations. They will not be able to recommend or comment on any specific stock, bond, or MF holdings. They would not be able to implement any recommendations. 

A licensed, fee-only or fee-for-service advisor will charge in the $125-$250/hr range and usually has a minimum fee...could be 4 hours or more. Licensed advisors don't typically want a lot of this work, for pretty good reasons. 

There isn't any real agreement about what "fee for service" and "fee only" mean. However, generally speaking, "fee for service" refers to unlicensed advisors providing financial planning advice and "fee only" refers to licensed advisors who provide services for a fee, typically a percentage of assets managed but they will also have an hourly rate if they provide services to people whose money they do not manage.


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## Four Pillars (Apr 5, 2009)

MoneyGal said:


> ...
> 
> However, generally speaking, "fee for service" refers to unlicensed advisors providing financial planning advice
> 
> ...


I've never heard the term "fee for service". Most (if not all) unlicensed advisors call themselves "financial coaches". They typically take a broader look at finances and will work with debt, budgets - basic financial planning.


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## MoneyGal (Apr 24, 2009)

Whether or not they use the term fee-for-service, that's the description of their business model: http://www.morningstar.ca/globalhome/Industry/news.asp?articleid=885

There seems to be a lot of confusion about the different business models and how they relate to service offerings. 

For example, in a certain demographic, you'd be laughed out of the boardroom if you offered services as a "financial coach." 

At the same time, the questions posted above from Humble relate to discretionary management of pools of capital, not to financial planning (investment counsel shops DO NOT do "financial planning"). 

Lots of people here seem to think that low-wage, low-status bank IFIC salespeople earning a "garbage" salary should be discretionary wealth managers, planning for client's retirement income streams including tax consequences of various bucketing strategies. 

The most important questions you should be asking when looking for someone who is going to be involved with you and your money - whatever they call themselves - is what, specifically, you are looking for advice with, what you expect the advisor to do for you, and what you expect to do on your own. You should also be aware of how service offerings change depending on the amount of money (investable wealth) on the table.


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## njbr (Apr 15, 2011)

MoneyGal said:


> The most important questions you should be asking when looking for someone who is going to be involved with you and your money - whatever they call themselves - is what, specifically, you are looking for advice with, what you expect the advisor to do for you, and what you expect to do on your own. You should also be aware of how service offerings change depending on the amount of money (investable wealth) on the table.


thanks for that, makes so much sense.

I'm meeting with someone tomorrow and hopefully Friday, will report back here once I collect all the necessary information.


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## I'm Howard (Oct 13, 2010)

This month;s issue of Moneysense has an article that deals directly with this issue. 

License Plate of a local Financial Planner, Sprslsmn(Super Salesman).


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## A Voice of Reason (Feb 23, 2011)

*Would love some opinions*

Hi everyone

I thought I would post here since it seems the appropriate thread. I met with a wealth management company yesterday. Basically they are charging 1% per year of assets to come up with asset mix, tax avoidance stategies, implement plan, actively manage it. No buying of individual securities, looking in broad based indexes with a standard 60-40 split between stocks and fixed income. 

I know that given the time, I could probably do this myself. My issue is that simply, sometimes its hard to find time in the day. 

I guess my question is, is this a fair comission if I decide to go with him?

Thanks in advance for your insight.


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## Four Pillars (Apr 5, 2009)

A Voice of Reason said:


> Hi everyone
> 
> I thought I would post here since it seems the appropriate thread. I met with a wealth management company yesterday. Basically they are charging 1% per year of assets to come up with asset mix, tax avoidance stategies, implement plan, actively manage it. No buying of individual securities, looking in broad based indexes with a standard 60-40 split between stocks and fixed income.
> 
> ...


Please start a new thread.


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## HaroldCrump (Jun 10, 2009)

Four Pillars said:


> Please start a new thread.


Preferably one NOT titled _Would love some opinions_


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## Four Pillars (Apr 5, 2009)

HaroldCrump said:


> Preferably one NOT titled _Would love some opinions_


Lol.


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## kaleb0 (Apr 26, 2011)

I've had 2 different financial advisers - one of them was alright, both of them were basically sales people. The second person, I _almost_ feel bad about because he brought me out for lunch, etc. hoping to get me to buy into a life insurance policy which I quickly told him I don't need as I have no debts, no kids, and most of my assets are pretty liquid in nature.

I did end up setting up a small amount into a mutual fund with him that has proven to perform relatively well. 

We haven't spoken since. I'd love to hear anyone's _good_ stories about their experiences with financial advisors who didn't try to cram "investment *products* down their throat like used car salespeople.


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