Questions to Ask Your Financial Manager
"Questions to Ask Your Financial Manager
Choosing the right financial manager is by far the most
important investment decision you will make. Depending on your
financial needs, it is imperative that you find answers to some
important questions, from your financial manager. Given below
are some should-be-asked questions.
1. What services do you offer and what are your areas of
specialization i.e. do you specialize in retirement planning,
investment planning, tax planning estate planning, insurance
planning or any others?
2. How many years of experience do you have in offering
financial planning advice? Presently, how many clients do you
have?
3. Describe your work history in the past five years. What
financial planning credentials do you hold?
4. What are your educational qualifications and what subject
have you specialized in? How can I be sure that your lack of
experience in the fluctuating market can be compensated with
your educational degree?
5. Have you ever managed or owned a business?
6. Can you explain financial jargons in simple terms that I can
understand? Can you also explain your investment approach and
philosophy in simple terms?
7. Do you have a license or are you registered with an
investment firm? If so where?
8. Where is your own money invested? Explain the reason why you
chose those kinds of investments.
9. What do you charge for your services? Do you work on a
fee-only basis or a brokerage commission basis? Why?
10. How often do you meet your clients? Can you meet me once in
three months? How receptive will you be to my queries that may
arise at any time?
11. From what sources do you get new investment ideas? How do
you keep abreast of the market trends and swings? Do you have a
team of experts to seek advice from?
12. How often do you re-evaluate your client's financial
portfolio? Will it be possible for you to provide me a quarterly
assessment and advice regarding my financial portfolio?
13. Based on my needs and limitations, how do you plan to invest
my money? Why do choose those investment options?
14. Have you ever filed for bankruptcy? Do you have any
disciplinary action or complaints registered against you?
Always check your financial manager's track record and client
satisfaction level. Never go merely by his/her words. Remember
that selecting your financial manager is much like selecting
your doctor. If you want the 'sound health' of your finances,
select the right manager. Never be afraid to ask questions and
clear any doubt you might have, as finally its all about your
money and your future.
"