Top Five Questions You Need To Ask Your Financial Advisor In 2023

You have had your share of joys and sorrows in 2022. Are you keen to throw darts at last year’s mistakes? The best thing would be to avoid repeating the same mistakes that you committed last year. But you should also be interested to know what methods your financial advisor uses to build a portfolio. So, if you are not one to manage your finances, you can hire a financial advisor.  But not all of them are created equal. If you want to get advice for financial management in 2023, here are a few questions you need to ask before giving a nod to the experts.

5 questions you must ask your financial advisor in 2023

1. What are your investing strategies?

Each financial advisor creates and follows a different strategy. Therefore, you need to find out what strategies and principles will the individual creates to meet your financial goals. Does the expert rely on past experiences to know what will work or what will not? Chances are that the younger advisors will have less knowledge of the financial markets than the experienced professionals.

2. What are your qualifications?

You may ask numerous questions to the advisor but do not skip asking one major question and that is about the qualifications of the individual. The financial industry is ever-changing and you need to hire someone well-versed with the latest happenings in the financial sector. It would also be an excellent idea to hire someone with an experience of a decade or someone who has never had any issues with the law. You can also ask the advisor about the number of clients they handle each year and sneak into the market segment they follow. A person with more qualifications and experience will offer a wide range of advice.

3. What do your charge?

One reason why financial planning turns odd is due to the fees and compensation that the advisor asks for. Often, they do not reveal their fees on the website and you may find it difficult to trust a person who is not ready to disclose their current fees. Keeping in mind that good advice does not come for free, you need to know the fixed fees and the hourly fees of the individual.

4. What will be the relationship like?

The relationship you will have with the advisor will depend on how accessible the person is in the long run. Will the person be available on phone or respond to emails outside the scheduled meetings? You need to let your advisor know the expectations to have an enjoyable relationship.

5. What are the services you provide?

When meeting a financial advisor for the first time, you need to ask them about the list of services they offer. Ask about the financial areas they focus on to decide whether you want them to manage your finances and or plan the investments. For instance, if you are someone who earns and saves well, your aim should be to lower taxes.

Choosing a financial advisor should be based on your unique situation. Therefore, you must always ask the right questions to the professional to meet your needs appropriately.


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