09/03/2015
Before Hiring A Wealth Manager – 10 Important Questions to Ask

Before Hiring A Wealth Manager – 10 Important Questions to Ask

There are many ways to build wealth, and all of them have one thing in common: choosing the right wealth advisor will maximize your gains. Every decision you make could have a huge impact on eventual profits, and you need to know you’ve found the best possible wealth advisor before making a commitment.

An advisor needs to be experienced in a variety of investment options, trustworthy, accessible, and free of any conflicts of interest. You can’t get this kind of information on a resume, so you’re going to have to find it out for yourself.

Here’s 10 questions to ask your potential wealth advisor:

Do you charge a flat fee or charge commission on sales of financial products?

This is an elemental question to ask. The way your wealth advisor makes money directly correlates to the kind of service and dedication you’re going to receive. It’s wise to educate yourself as to what their compensation plan is.

Can I trust you with personal information? Naturally, no wealth advisor is going to say, “No.” What you have to do is gauge the responses of the wealth advisors you talk to and choose the one who you feel most comfortable with.

Will you follow my investment advice? What’s good for one client may be too risky or too conservative for another. Your advisor needs to understand your risk tolerance and tailor a plan to fit your needs. If they’re not willing to follow your game plan, find someone that will.

Do you have any conflicts of interest? Your advisor needs to be completely transparent in their motivations for making certain market moves. Feel free to ask them about their obligations to other clients. Your wealth advisor should be committed to you and your goals all the way.

How large is your firm? A large firm is not necessarily better. Please check out references and other available information.

Have you worked with similar clients to myself? Do they work with clients of a similar net worth, age, and goals? If so, they’ll be more familiar with the kind of investments that have worked in the past and the level of risk you’re willing to take.

How will you make yourself accessible? How can you reach them and at what hours? You need an advisor that’s responsive and dedicated to you as much as all their other clients.

How many years of experience do you have? Ask them how many years of experience they have in general, but also how much experience they have with the kinds of investments you’re looking to make.

Can I speak with your references? Get a list of references and actually speak with them before making a decision.

We hope that this blog article has been insightful. If you have questions, please feel free to contact us at Optifour!

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