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The Four Cs of choosing a financial planner 1. Credentials
- What certifications, college /university degrees and experience does he/she have?
- How many clients or how much money does he/she handle?
- Make sure the planner is registered with the Investment Dealers Association in your area or Certified by a Government body
- How are you compensated? Flat fees, salary or commission? (Beware of those who earn big commissions for placing you in high risk funds)
- Are there any hidden underwriting fees with my investment fund?
- Will you explain all the cost involved with each investment?
- What is the cost of liquidating or canceling my account with your firm? (Good to know, if you decide to switch funds or investment companies)
- What is your investment philosophy?
- Do you focus on domestic markets, foreign market or both? (Answer should be both)
- What is your specialty? Your strongest area? (Global portfolio management, no load mutual funds, stocks, bonds etc)
- How do you view risk and how does your philosophy fit my risk tolerance?
- What services does your firm offer?
- How accessible will you (the agent) be?
- Will you review the funds last 5 to 10year performance in the prospectus?
- What has been your year-to-year investment performance?
- What was you worst year? Best year? And why? (Look for defensiveness or humility after raising this question, it reveals personality type)
- Do you offer financial planning, money management or both?