ANSWERED: The Top 9 Questions Potential Clients Should Ask Advisors

By Snider Advisors June 25, 2012, 07:18:12 AM EDT

I recently read an article on the Top 9 Questions Potential Clients Ask Advisors . Having been in many meetings with potential clients, some of these are more common than others. Overall, I thought it was a great list for someone interviewing potential advisors. I've never had to sit on the other side of the table in one of these meetings, but these are questions you should ask and answers you should know about your investment advisor. Here are my responses to the top questions:

1. Have you ever been cited by a professional or regulatory governing body for disciplinary reasons?

No. I, as well as all the advisors at Snider Advisors, have never been cited for any disciplinary reason. The scary truth is very rarely am I ever asked this question.

2. Does any member of your firm act as a general partner, participate in, or receive compensation from investments you may recommend to me?

No one receives compensation or commissions for the sale of our investment recommendations. For full disclosure some of our advisors, including myself, are licensed to sell insurance. The firm does receive a commission from the sale of insurance products. Overall, the Snider Investment Method is the primary focus of our firm. Insurance, primarily Long-Term Care, is a very small part of our business but essential to many of our client's financial plans.

3. Describe your typical client. Can you provide me with some names and telephone numbers of your long-term clients?

About half of our clients are Baby Boomers who are transitioning from the accumulation phase to the distribution phase of their financial plan. The other half consists of retired clients already taking distributions and living off their portfolio income. Typically, our clients have a net worth between $500,000 and $3 million. We also have a list of clients willing to share their experience. Be aware, most firms have a list of references that consist of their biggest, best, and happiest clients.

4. What educational degrees and professional certifications do you hold?

I am a Chartered Financial Analyst and have a B.S.B.A in Finance and Economics. The CFA charter is globally recognized as the gold standard investment credential. You can learn more about the CFA charter and CFA Institute here .

5. Are you a registered advisor?

Yes. Why is this important? As registered advisors, we have a fiduciary responsibility. This means putting the clients' interest FIRST . Many people within the investment industry are not required to uphold the fiduciary standard.

6. Where will my assets be kept?

We never take possession of our client's funds. We have the ability to place trades in our client's accounts, but cannot move funds without their approval. The custodian and broker for our asset management accounts is Interactive Brokers . If you trade the Snider Method on your own, you can choose any custodian (broker) you would like.

7. How many more years do you plan on being a financial advisor?

When compared to the standard investment professional, I am fairly young. I truly enjoy my job and would expect to be an investment advisor for another 20 or 30 years.

8. How will you help me meet my financial goals?

First, we'll discuss your goals and fears. Many investors haven't ever defined them. Then, together we will decide if the Snider Investment Method is right for you. We have a very specific strategy and approach to investing. It is not right for everyone. We don't try to be all things to all people. If your goals match the objectives of our strategy, we will be a good fit for one another.

9. Why?

I believe we've come up with the best solution to the problems many investors face. But, it still needs to be the right fit for both parties. Find out if the Snider Method is Right for You or Take the Snider Method Assessment.

Finally, I thought the list was missing one question. The tenth question should be: Do you personally invest using this investment strategy? My answer is YES! You can learn about my first trades here .

The intent of this article is to help expand your financial education. Although the information included may be relevant to your particular situation, it is not meant to be personalized advice. When it comes to investing, insurance and financial planning, it is important to speak to a professional and get advice that is tailored to your unique, individual situation. All investments involve risk including possible loss of principal. Investment objectives, risks and other information are contained in the Snider Investment Method Owner's Manual; read and consider them carefully before investing. More information can be found on our website or by calling 1-888-6SNIDER. Past performance is not indicative of future results.




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Personal Finance, Retirement

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