Friday, April 17, 2009

What You Need to know before hiring a Financial Adviser

Suppose you are meeting a Professional Financial Adviser for the first time, What will be your reactions? Obviously you will hesitate to share anything with him because its the only first meeting. But you shouldn't forget that ultimately you are the boss, you are hiring him and not he hiring you. Its up to you what qualities you will look into the Financial Adviser. It is indeed very important to judge the right person because he will be the one taking care of your Investments in future. Below I am listing few questions that would definitely help you in judging the right financial Adviser.

Do not hesitate to ask your to be financial adviser any question you have in mind

How well is your U4?

U4 as we all know is the report card of a financial expert which states us his good as well as bad qualities. It will tell you everything about his background. Basically it is nothing but a card where it will be shown all his misdeeds (if any). The best way to cross check his answers is to login here which will tell you whether your financial adviser is an honest person or not.

How much is your fees?

I am sure you will think that it is quite a shy feeling to ask these questions. But just imagine it is the matter of your hard earned money, so why feel shame in asking. If you buy anything costly from the market, dont you ask the price of the thing before purchasing it? Who knows they can make money later in form of commission, other charges etc. It will also give you a feeling of satisfaction if the total charges of hiring him is known to you in advance.

These were the most common type questions to be asked, now lets move to some in-depth questions.

Whats your job portfolio?

this is important because as I told you earlier it is a matter of your MONEY. If in the portfolio he states that he have only marketing stocks, then i dont think it is valuable to take his advice. It is very important for you to chose the planner who have got strong portfolio.

Do review his Job Portfolio twice or even more than that...

How many times you have changed your Job?

It is very important to know how many jobs the person has switched. If the person has switched around 3-4 jobs in one year then it is very clear that he is not interested in earning client's value he is only interested in making money for himself. It is not at all worth keeping a person like this to plan your money.

How many clients you work with at a time?

If he is handling more than one client at a time, then it is quite clear that he wont be able to manage all the clients together. It might happen that he will try to convince you that he can manage all the clients together. But you are the best judge at the end of the day. Giving him a chance will be a foolishness and nothing else.

How long you plan to work with my Money?

This is a very good question to judge his credibility. If he says, he will manage your money till he helps you in reaching at the highest point of satisfaction, then only he is an eligible financial adviser for you.

Do you have a girlfriend or are you married?

When a financial planner can know everything about your life, then I dont think there is any problem asking him this personal question. There are many people who have a wife or a girlfriend and then they are busy solving their personal problems rather solving your financial problems.

Keep in mind these questions and you will definitely find a right financial adviser for yourself.

So have you met your financial adviser? If so do share what you asked him or her, Is he serving your needs well or not.

No comments: