What to ask your Financial Planner

When you’re trying to make an investment, you may at one point think about getting a Financial Planner It makes sense right? Investments can be a tricky field to go into, not to mention risky and potentially expensive, so it makes sense to want to get one. Unfortunately, many people don’t necessarily know how to choose a planner and as a result of this they just pick whoever is available or cheapest for them. This isn’t always a bad idea, but wouldn’t you want to know for sure if your planner knows exactly what they’re doing before working with them? Even if you know nothing about making investments, there are very easy ways to find out. Here are three questions you should ask your planner before you decide to work with them. 

1. How do you Invest in yourself? 

This may sound a bit odd, but to a planner, this should basically mean “What are you doing to make sure that you stay current?”. The economy is a constantly changing field, and thus investing and all sorts of other plans have to adapt with the times and someone who is good with finances will always train themselves to stay up to date. If you ask this question, and you don’t get a response, then it’s time to look for someone else to help you. But they may also give you an answer and there are a few unacceptable answers as well. Be very, and I do mean very, weary of anyone who says that change is a constant. These people don’t usually last in the industry for very long and their clients suffer even worse results. 

2. What is your educational background?

This one may sound like a no-brainer but it really is incredibly important that you know about your planners’ history. Ask them do they have a degree, what kind of degree, where did they get it, how long did they study, what did they study, everything. Get every single detail you can before going forward with this process. Don’t get the wrong idea, intelligence is important and there’s a lot more to this field than what you learn in a college setting, but it really helps to have that education as well, and at the very least get some confidence that this person, who you might be trusting with your money and life, knows exactly what they are doing. 

3. How were you in the year 2008?

This was back during a recession, so this is a big one. Out of all the questions on this list, I would say that this is probably the most important. Their answer could be informative and might make or break the assessment. 

These three questions are only the top of the list. You can ask plenty of questions besides just these three, in fact, I encourage you to ask more questions. There’re many things you should know when searching for a planner. If you’d like more information on selecting a planner, read through this. 

In the end, you’ll be glad that you went through the hassle.