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Choosing A Financial Adviser – Some Questions To Ask

Choosing A Financial Adviser – Some Questions To Ask


choosing a financial adviser

For the do-it-yourselfers on the market, now might be a great time to examine how you’re doing, with comparison to the plan which you laid out in the start of the year.

For people who aren’t self trading with a broker like Questrade but are daunted by the head-scratching endeavor of choosing a financial advisor, here are the five questions to ask when they are choosing a financial adviser, agent or stock broker before you finally decide to hire them :

1) Are you currently registered as an investment adviser?

If yes, then the adviser owes you a fiduciary obligation, which is a fancy way of stating that they need to place your needs first. Investment professionals that aren’t fiduciaries have to commit to lesser regulations or standards, known as “suitability,” meaning that whatever they sell you must be proper for you, even though it could be not necessarily in your best interest.

They should clearly say in composing how they are going to be compensated for the services offered. How frequently you expect to exchange, and if you need your money pro-actively handled, can help determine which model does it best for you personally.

2) What expertise do you have?

Learn the length of time the adviser was in training and where; also ask whether they have any professional certificates, licenses or designations. As these are signs of authenticity, they do not guarantee a prosperous connection.

3) What solutions do you provide?

The services provided can depend on lots of things such as credentials, licenses and domains of experience. Some provide guidance on a array of subjects, but don’t provide financial products. Some may provide advice only in certain areas like estate planning or taxation issues.

4) How do you approach financial planning and investing?

Some advisers are keen on developing a holistic plan which ties together all of your financial objectives. Others would give you tips on specific spots, as required. Be certain that the adviser’s perspective on investment is neither overly cautious nor too competitive to your risk tolerance. Also ask if the planner makes investment choices themselves, or is determined by others in the business to achieve that. What was the adviser’s performance in both good and bad markets and also ask yourself if it is important for you to generate income in a rising market or avoid losses in a down market. An excellent follow up question would be: what would be the two worst investment choices you have suffered over the previous five years, and how did you fix them?

5) Is there something in your regulatory document that you should be telling me about ?

A component of your analysis must consist of running background checks to the specialist you may employ. When some offenses are non-starters (payoff of numerous client complaints) others could be clear (marketing substances not pre-approved; non-client or investment offenses).


There you have it, some tips to choosing a financial adviser! If you are interested in getting involved with a financial adviser, please feel free to hit up our contact page and remember to be constantly aware when looking for an adviser. There are a lot of sketchy “investors” out there who have the golden solution to investing your money. Your financial advisor should have your best interests at heart, and if they don’t, you can find someone else fairly easily.

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