Life & Money

Questions you might want to ask your financial adviser

May 30, 2017


Questions you might want to ask your financial adviser

Life & Money

Putting Investors First Month (thanks, CFA Institute) also happened to be a month where many Canadians got a financial windfall in the form of a tax refund.

Were you one of those lucky folks who got some money back from the CRA? Looking to invest that money? That’s fantastic. But before you do that, we have a suggestion:

Ask the financial adviser a few questions first

“Given recent media reports about poorly-trained bank advisers ‘duping customers’, we want to make sure they get the help they need to invest the right way,” said our Co-Founder and CEO, Tea Nicola last week.

As she noted then: “Investors should be looking for highly qualified financial advisers who are regulated by their provincial securities commission directly.” Not to toot our own horn too loudly, but that describes our financial advisers.

We want investors to get high-quality, honest advice, whether they’re using a robo-adviser or traditional wealth management option. Want to be proactive in protecting your investment? Ask the adviser these questions:

  1. What are their credentials or experience?
  2. Are they officially a fiduciary, with a legal duty to put your interests first when recommending investments?
  3. What is their process for handling conflicts of interest in a transparent and effective manner?
  4. What fees are they charging? How are these calculated and collected?
  5. How will they ensure that financial information is kept secure and confidential?

Not getting the answers you want to hear from your current financial adviser? Curious about your investment’s performance, diversification and fees? Get a Second Opinion about your investments!

A few minutes today could save you thousands tomorrow.
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