Interview Questions For Wealth Manager Selection

In an earlier post “Seeking Total Wealth Management” I indicated I would post an article on the right questions to ask in seeking a total wealth management professional. Professional Association web sites can be a good start for some basic questions to get started. The Financial Planning Association (FPA)that serves over 30,000 financial advisors has a Checklist For Interviewing a Financial Planner. The National Association Of Professional Financial Advisors (NAPFA)that serves the fee-only advisors also has a checklist of questions to review before you begin you inquiries.

Both of these fine organizations do a great job of identifying basic issues from which to separate advisors with. Below I will identify some of the “really great financial advisor questions” that I have been asked in addition to the good ones these organizations have started with.

·     What makes a good client for you?

o The answers will provide some insight into whether or not your needs, and more importantly values and styles of working, will be compatible

·     What are your long-term plans with respect to this/your business/career?

o You are looking for how seriously this advisor has taken their own planning and also their seriousness about the career path they have chosen. Is this a serious undertaking or just a job?

·     Describe client situations that haven’t worked out.

o It is unlikely all client situations have been ideal. If the answer of “they all have worked out” is it likely due to inexperience or worse.

·     Who will be working with me?

o There is no right answer here. Some advisory firms work as a team, others do it by themselves. Occasionally you will find the initial contact is made by a sales person. You deserve to know who before you start.

·     Describe your investment process? Active or Passive? Who all is involved?

o Once again you are looking for the best match overall. Is this firm in sync with your needs and beliefs?

·     How do you select the people you work with? Staff? Outside Professionals?

o There are many right answers but it should make sense and be congruent with your value systems.

·     What do you do that gets outsourced?

o Outsourcing can be a good thing but you have a right to know who the players are.

o A follow-up is “how will my privacy be assured in these relationships?”