Tough Questions to Ask Potential Financial Advisors

Here's a list of tough questions you need to ask potential financial advisors from Money Central:

• Are you legally obligated to act in my best interests at all times? If so, are you willing to put that in writing?
• Will you disclose all potential conflicts of interest?
• In what ways are you compensated?

Remember, just because you ask the right questions doesn't mean you'll get truthful answers. But that's why you only ask questions of potential advisors who have been recommended from trustworthy family members, friends, or co-workers. By then, you should know that this particular advisor will give you a truthful answer.

Money Central ends with other steps you can take to select a good financial planner:

• Understand what titles and credentials mean.
• Check his or her background.
• Read Form ADV.

In short, do all you can to make sure this is a competent, trustworthy advisor. After all, you'll be placing at least part of your financial future in his hands and, as such, you'll want to be sure he'll take the best possible care of your money.

Comments

[Super Saver]

A build is to "test drive" advisors that meet one's criteria. Once I found an advisor I was willing to trust with my savings, I put 10-15% with them on a trial basis. They have done well during this time and I will increase the percentage invested with them as I approach retirment.

[Linda Hale]

I need to ask a question about an investment my grandmother had made for me when I was 8 at bank of america i am now 61 can anyone help me?

[FMF]

Linda --

Email it to me and I'll post it on the site for everyone to comment on.

http://www.freemoneyfinance.com/2005/04/free_money_fina_4.html