Thursday, 29 January 2009 08:02
Advisors earn their money in a variety of ways but what is most important to you as an individual investor is making sure that compensation and advice are not somehow linked together. Conflict free advice is worth seeking out. Here a few questions you should ask any advisor you are interviewing to help you make the best choice for your situation:
1. How long have you been in business?
2. Have you ever been cited by a professional or regulatory body for disciplinary reasons?
3. Are you engaged in any other business?
4. How is your firm paid and are you willing to spell it out in writing? (Fee-only and percentage of assets have the fewest conflicts.)