10 Vital Questions To Ask Your Financial Advisor
2. What’s your qualification?
Are you certified as a financial advisor? This should be your second question. You cannot trust strangers; anyone can become a financial advisor, so it is better to ask his qualification and produce certificates that qualifies him a certified financial advisor, a certified personal financial specialist (CPFS), or a chartered financial consultant (ChFC). Ensure that the advisor you choose has hands on experience in insurance, tax planning, investments and retirement planning.
3. Are you responsible enough in these matters?
Are you aware of the word “fiduciary”? It is a legal term used for the advisors who carry a high level of responsibility, legal liability and accountability for their advice. In simple words, an advisor who recommends you with the best financial advice than thinking of his own income is always reliable. If suppose you do not need insurance, then he would recommend you not to buy it; if you won a vacation voucher but it seems to be draining your retirement savings, then he would advise you to sell it.
Other advisors may not be obligated to advise that are best for you. Instead, they would rather look out for their income.
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