- Money Topics
Questions to Ask Yourself Before Choosing An Investment Professional
- Do you need help developing strategies to reach your financial goals or do you simply want suggestions on appropriate investment products to implement your goals?
- Do you want assistance with a few targeted areas, or do you need a comprehensive plan for your finances?
- Do you already have a portfolio of investments you would like help managing?
- How involved do you want to be in decisions about your specific investments?
- Do you prefer paying for investment services through a fee, commissions, a percentage of assets in your account, or a combination of these?
- Do you prefer working with someone who is primarily considered a salesperson, an adviser, or a combination of the two?
- How important is it to you that your provider have a legal obligation to act in your best interests and disclose potential conflicts of interest?
Questions to Ask Your Investment Services Provider
- What services do you offer?
- What qualifications do you have to offer those services?
- How do you charge for those services? Do you receive compensation from other sources if you recommend that I buy a particular stock, mutual fund, or bond?
- Would my account be an advisory account or a brokerage account?
- Are you required by law to always act in my best interests? Will you put that commitment in writing?
- What potential conflicts of interest do you have when recommending investment products to me, and will you disclose those conflicts?
- Will you provide me with a written record of any disciplinary history for you and your firm?
- Will you give me your Form ADV (the registration form that must be filed by investment advisers) and/or your Form U4 (the registration form used by persons who work with brokers)?