Por: CF
Questions To Ask Yourself
Before seeking a financial adviser, you should think about your answers to these questions to better understand
your goals and preferences:
… Why am I looking for an adviser?
… What do I want most from an adviser?
o Trade execution and portfolio monitoring?
o In-depth active management and control?
o Management of all of my assets and financial concerns?
…
What are my investment objectives?
… What is/are my time horizon(s)?
… What does risk mean to me? How much risk am I willing to take?
… When will I need to draw money out?
… What other special circumstances affect my investments?
o Wealth transfer?
o Tax situation?
o Need for current income?
… What kind of communication do I want with my adviser?
o Are my needs best met by formal reports, by telephone conversations, or by face-to-face meetings?
o Do I need an adviser who works nearby, or am I comfortable communicating with someone in
another location?
Setting the global standard for investment professionals
Important Questions
© 2010 CFA Institute 2
Questions To Ask a Financial Adviser
Interviewing potential advisers is absolutely appropriate. This list of questions will help you identify an appropriate,
well-qualified adviser who is committed to standards of ethical and professional conduct.
… What is your educational background?
… What are your professional qualifications?
… What is your employment history in the investment industry?
… What is your firm’s client turnover rate?
… Are you a member of a professional association, such as CFA Institute?
… What services do you offer? Retirement planning, investment planning, tax and estate services, insurance, etc.?
… What is your fee structure?
o Do you make commissions on the products you sell or have an affiliation with any company whose
products you recommend?
… Have you ever been disciplined for unlawful or unethical actions in your professional career?
… What is your investment management approach?
… How will your approach help me reach my investment objectives?
o What are the performance features, obligations, and risks of the investment you are proposing?
… What is your performance history?
… How often will you communicate with me?
… What regular reports will I receive?
© 2010 CFA Institute 3
Questions an Adviser Should Ask You
It’s the adviser’s job to understand your investment objectives, tolerance for risk, investment constraints, and any
special needs. When meeting with or screening a prospective adviser, the questions he or she asks will tell you a
lot about his or her investment approach and how attentive he or she is going to be to you. Here are some questions
you should expect a financial adviser to ask as you develop your investment goals and strategy:
… What are your investment goals?
… What does “risk” mean to you?
… What personal and professional circumstances affect your financial situation?
… How much decline in your portfolio are you willing to accept in a given year?
… What are your household income and current savings?
… How will losses affect your lifestyle?
… What is the time horizon for meeting your goals?
… What amount of assets do you want me to manage?
… What is your tax situation?
… Do you work with other advisers, such as an accountant or estate attorney? Do you need these services?
… Do you have any tax or legal strategies in place that affect your investments?
… May we coordinate with your other advisers?
… How much communication do you like to have with your wealth manager?
Before seeking a financial adviser, you should think about your answers to these questions to better understand
your goals and preferences:
… Why am I looking for an adviser?
… What do I want most from an adviser?
o Trade execution and portfolio monitoring?
o In-depth active management and control?
o Management of all of my assets and financial concerns?
…
What are my investment objectives?
… What is/are my time horizon(s)?
… What does risk mean to me? How much risk am I willing to take?
… When will I need to draw money out?
… What other special circumstances affect my investments?
o Wealth transfer?
o Tax situation?
o Need for current income?
… What kind of communication do I want with my adviser?
o Are my needs best met by formal reports, by telephone conversations, or by face-to-face meetings?
o Do I need an adviser who works nearby, or am I comfortable communicating with someone in
another location?
Setting the global standard for investment professionals
Important Questions
© 2010 CFA Institute 2
Questions To Ask a Financial Adviser
Interviewing potential advisers is absolutely appropriate. This list of questions will help you identify an appropriate,
well-qualified adviser who is committed to standards of ethical and professional conduct.
… What is your educational background?
… What are your professional qualifications?
… What is your employment history in the investment industry?
… What is your firm’s client turnover rate?
… Are you a member of a professional association, such as CFA Institute?
… What services do you offer? Retirement planning, investment planning, tax and estate services, insurance, etc.?
… What is your fee structure?
o Do you make commissions on the products you sell or have an affiliation with any company whose
products you recommend?
… Have you ever been disciplined for unlawful or unethical actions in your professional career?
… What is your investment management approach?
… How will your approach help me reach my investment objectives?
o What are the performance features, obligations, and risks of the investment you are proposing?
… What is your performance history?
… How often will you communicate with me?
… What regular reports will I receive?
© 2010 CFA Institute 3
Questions an Adviser Should Ask You
It’s the adviser’s job to understand your investment objectives, tolerance for risk, investment constraints, and any
special needs. When meeting with or screening a prospective adviser, the questions he or she asks will tell you a
lot about his or her investment approach and how attentive he or she is going to be to you. Here are some questions
you should expect a financial adviser to ask as you develop your investment goals and strategy:
… What are your investment goals?
… What does “risk” mean to you?
… What personal and professional circumstances affect your financial situation?
… How much decline in your portfolio are you willing to accept in a given year?
… What are your household income and current savings?
… How will losses affect your lifestyle?
… What is the time horizon for meeting your goals?
… What amount of assets do you want me to manage?
… What is your tax situation?
… Do you work with other advisers, such as an accountant or estate attorney? Do you need these services?
… Do you have any tax or legal strategies in place that affect your investments?
… May we coordinate with your other advisers?
… How much communication do you like to have with your wealth manager?
