Important Questions to Ask a Financial Advsior

Preparing for your first meeting with a financial advisor? What are some key questions to ask? Keep reading to find out!

Are you a Fiduciary?

A fiduciary advisor is someone who acts in the client’s best interest before their own in all situations. They are responsible to provide recommendations in good faith for the client. In comparison, a non-fiduciary advisor is able to make suitable suggestions for the client, which may not be the best option. This is important to know because not all financial advisors are fiduciaries, and not required to be.

How much do you charge and how do you get paid?

Financial advisors use a variety of different fee structures. The common compensation methods financial advisors use are fee-only (charges hourly or flat rate for various services), commission (paid through commissions on what they sell to you) or fee-based (charges a percentage of your assets they manage). A client wants to make sure they understand how much they’re paying for the services they’re being provided.

What services do you provide?

Make sure the services a financial advisor offers align with the client’s goals. A financial advisor can offer a wide array of amenities including: investment management, financial planning, retirement planning, wealth management, estate planning, etc. Some financial advisors target certain niches or have net worth thresholds. A client should look for a financial advisor that has experience working in similar situations to their own.

What are expected responsibilities of the financial advisor?

Clients should want to know what to expect if they decide to work with a financial advisor. Is the financial advisor’s philosophy and approach towards planning similar to the client? Does the advisor consider the individuals risk tolerance of the client vs their own beliefs? Will the client be working with only one advisor or a team of advisors? How will on-going communications and meetings be offered after the initial set up?

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Why Sgroi?

Sgroi Financial has been helping Western New Yorkers achieve financial freedom for over 50 years! We have a team of dedicated financial advisors ready to provide a personalized financial guide to meeting your specific financial goals. As an independent, fiduciary financial firm we pride ourselves in doing what’s best for our clients and their families. Take control of your finances and ask Sgroi Financial these questions to see if we’re the right fit for you!