10 dating questions
Some advisors might include your teenage or young adult children in the planning, others not so much.
“The financial industry is this weird meld of commission and hourly and percentage of assets,” Mast says.Find an advisor who is used to a situation like yours and able to help you meet your goals.Put another way: How much access will I have to you?Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues.Our estimates are based on past market performance, and past performance is not a guarantee of future performance. We have entered into referral and advertising arrangements with certain broker-dealers and investment advisors under which we receive compensation when you click on links to the partner broker-dealers or investment advisors, and/or submit an application or get approved for an account.“At the end of the day, it’s a relationship you’re building with someone.” Be sure to tell advisors that you’re interviewing others, so they know you’re not making an immediate decision, says Brad Klontz, a CFP and associate professor of practice in financial psychology at Creighton University in Omaha, Nebraska.
Focusing on the idea of interviews might help you feel more confident, he adds.
They might charge a percentage of your assets — 1% is common — a flat fee for services or an hourly fee. Otherwise, it’s probably a hybrid model, which means you don’t really know what you’re getting,” says Alice Finn, founder of Power House Assets and author of “Smart Women Love Money,” a guide to investing.
(Some of the questions here are from her book.) Also, review the advisors’ websites, because some advisors, including Collado and Mast, post their fee structure there. There’s another side to this question: The advisor may ask about your net worth, because some advisors require a minimum amount of investable assets. There are fee-for-service advisors; resources for finding one include Garrett Planning Network, Alliance of Comprehensive Planners and the National Association of Personal Financial Advisors.
Money is a taboo topic, so “we don’t really have a lot of reference points,” Klontz says.
“That creates anxiety.” Approaching the process like you’re hiring someone can ease apprehension. Fiduciaries work in the best interest of the client, while non-fiduciaries need only recommend products that are “suitable.” If the advisor makes more money for recommending some products over others, then she’s not a fiduciary, and the potential exists for conflicts of interest.
If the idea of interviewing advisors makes you nervous, keep in mind that even they think it’s important to do interviews.