If you think this is what you should be asking your financial adviser, think again

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Certified Financial Planner early in his career lin balou Got a strange question from a potential customer: “What kind of car do you drive?” He asked. He drove a humble Honda Civic and he, at first, wasn’t impressed: “He told me he drives a Mercedes and if I didn’t drive at least a good car like him, he was worried about what I didn’t.” It was good to plan,” says Balu, who is now senior vice president at EP Wealth Advisors. After laughing it off and telling the client that he should be happy he drove a reliable and cheap car because it meant that He practiced what he preached about costing more for her (not the car), says Ballu, laughing, “He ended up hiring me but too much in trying to persuade me to upgrade my ride. Years spent.” (You can use this tool to match you with a planner that meets your needs.,

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While this may be an obvious question not to be asked, others are less so. Here are four questions that, on their face, you might find helpful, possibly not as helpful to you in checking out an advisor as you might think.

1. How many clients do you work with and how many accounts do you manage?

More is not necessarily better, nor is less. Just because a consultant has lots of clients doesn’t mean he’s great, and fewer clients doesn’t mean he’ll have more time to spend with you. “It is important to understand how much bandwidth your financial advisor has, however, due to technology, bandwidth is not entirely dependent on the number of clients or managed accounts. As many advisors can attest, sometimes very small. One client with one account may take longer than ten clients with multiple accounts,” explains Charles Weeks, certified financial planner and founding partner of Barrister.

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Better question: Can you tell me about your client process and explain what I can expect from you if I decide to work with you?

2. What are your assets under management?

Focusing on assets under management can be confusing. “Just because an advisor has a lot in assets doesn’t mean the advisor is right for your situation. Most clients these days are looking for a comprehensive financial plan or maybe just pure unrealistic appreciation on a topic like Some specific advice,” says Weeks. So just because a consultant is handling a few hundred million dollars, doesn’t mean they can help you with your needs.

better questions: Which investment benchmarks do you use? Which asset allocation would you use for me?

3. What does your past performance look like?

This is often not helpful for one query as different clients have different needs – some want fast growth, some want slow and steady secure growth. “The idea here is that investors should focus on building a diversified portfolio based on their risk tolerance and goals. Capitalizing on past performance is not a recipe for success. Says Amy Richardson, certified financial planner with Schwab Intelligent Portfolio Premium.” Making steady progress toward your goals is always more important than short-term performance.”

Better question: Can you tell me more about your investment philosophy?
,You can use this tool to match you with a planner that meets your needs.,

4. What are your market predictions?

Weeks says, “Unfortunately, our crystal ball is only as good as yours. If by chance your advisor offers you market predictions, or worse – if they guarantee them – run for the hills and turn back.” Don’t look.” Your advisor should let you know that they will work with you to determine your risk tolerance, prepare an investment policy statement and invest accordingly. “Based on this information, they can back-test your allocation and provide a general idea of ​​what returns might look like over the next decade or more,” Weeks says.

Better question: How do you handle my money during market ups and downs?


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