How to choose a financial advisor: 10 questions

1/
2/
3/
4/
5/
6/
7/
8/
9/
10/
...
12/
More
Prev/ Next

1. Are you registered as an investment advisor?

If yes, then the advisor owes you a fiduciary duty, which is a fancy way of saying that she must put your needs first. Investment professionals who aren't fiduciaries are held to a lesser standard, called "suitability," which means that anything they sell you has to be appropriate for you, though not necessarily in your best interest. If the advisor is registered, ask for a copy of the Form-ADV and Form-ADV part II.

: linkicon reporticon emailicon
malpitcher says:: I would highly suggest asking friends, family, neighbors, etc for referrals. A referral often can prove a good track record and that is what I am interested in. I want to know that the advisor's accounts have been able to weather the storm of the markets over the years. That is how I found my advisor, Keith Steidle, about five years ago. Of course I asked the relevant questions, but I also asked them of the people who suggested him to begin with.; reply

: linkicon reporticon emailicon
ChrisGrande100 says:: Hi Jill,

good points - one issue I'll raise for further research:

the 3 references request may put an RIA in trouble with the rules against testimonials. Different attorneys/advisors have given me mixed answers on that.

Thanks for writing this good summary,

Chris; reply