Find a Reliable Financial Planner by Asking How They Get Paid
We are fans of money management with their hands , but there are times in your life when it makes sense to hire a financial planner . If so, Certified Financial Planner Jeff Rose suggests asking them one simple question: “How will you be paid?”
Of course, there are a number of questions that you want to ask any potential planner or financial advisor. You will want to ask about their experience and what they have done for other clients. In the video for GOBankingRates, Rose says you should also ask how they make money and find a straightforward answer.
Financial advisors are paid differently. Some are commission based, some are paid, some are paid only, and some are a combination of everything I just mentioned. Therefore, in order to ask this specific question to the advisor, you’d better get a straight answer. If they don’t answer directly and, most importantly, if their answer doesn’t make sense to you – do you want to hire someone who doesn’t understand how you pay for their services? I do not think so.
NerdWallet has pointed this out before . They say a trusted advisor needs to be transparent about how they make a living, and if they aren’t, it could be a red flag. NerdWallet details how consultant fees work , and Rose explains more in her video link below.
One Question to Ask Before Hiring a Financial Planner | GOBankingRates