Financial Advisor Selection Questionnaire

Email these questions to an advisor you’re considering hiring before engaging with them. Being informed will likely lead to a better fit and a more fruitful relationship.

• What credentials have you earned?
• What college degrees did you earn?
• How do you incorporate tax strategy into how you make investment decisions for your clients?
• How are you regulated?
  What role do you personally play in complying with all regulatory requirements?
• Can you pick stocks that consistently beat the market? Is there a chance that our investment will lose money?
• How does your firm make money?
• Do you have any conflicts of interest to share and how do you navigate them?
• Is the fee we pay you the only compensation you receive?
• Who is responsible for making recommendations to the mix of stocks, bonds, cash or other securities in our portfolio?
• Are the individuals making these recommendations a third-party custodian that will be responsible for holding our funds?
• Does the ultimate responsibility rest with the client?
• How large is the research staff that supports these decision makers?
• What would cause you to recommend a shift in the size, style and or sector mix of my portfolio?
• Who will be our primary contact with your firm?
• After selecting our investment approach, can we change our minds at any time and immediately recoup everything left of our investment and have no financial hooks to keep us from dropping your approach?
• Will you use mutual funds or other investment products in my portfolio?
• Aside from what I pay directly to you, what other compensation do you receive?
• Do you receive commissions for certain products?
• Do you receive commission for mutual fund allocation in my portfolio?
• Does the firm have a specific style of equity investing – large or small cap growth or value?
• Do you have incentives for selling stocks, bonds or other securities from your firm’s inventory?
• Do you offer advice on?
  - Goal setting
  - Cash management & budgeting
  - Tax planning
  - Investment review & planning
  - Estate planning
  - Insurance needs
  - Education funding
  - Retirement planning
• Do you provide an analysis of my financial situation and specific recommendations?
• Do you offer assistance with implementation of the plan?
• Do you offer continuous, ongoing advice regarding my financial affairs, including advice on non-investment related financial issues?
• Other than receiving my permission to debit my investment account for your fee, do you take custody of, or are you able to withdraw my assets?
• If you were to provide me ongoing investment advisory services, do you require discretionary trading authority over my investment accounts?
• How many clients do you work with?
• Are you currently engaged in any other business, either as a sole proprietor, partner, officer, employee, trustee, agent or otherwise? (Exclude non-investment related activities, which are exclusively charitable, civic, religious or fraternal and are recognized as tax-exempt.)
• Will you or an associate work with me?
• Will you provide me with references from other professionals?
• How long have you been offering financial planning services?
• How is your firm compensated and how is your compensation calculated?
• Do you have an agreement describing your compensation and services that will be provided in advance of the engagement?
• Do you have a minimum fee?
• If you earn commissions, approximately what percentage of your firm’s commission income comes from:
  - Insurance products
  - Annuities
  - Mutual Funds
  - Stocks and bonds
  - Coins, tangibles, collectibles
  - Limited partnerships
  - Other
• Does any member of your firm act as a general partner, participate in, or receive compensation from investments you may recommend to me?
• Do you receive referral fees from attorneys, accountants, insurance agents, mortgage brokers, or others?
• Do you receive ongoing income from any of the mutual funds that you recommend in the form of ‘12(b)-1’ fees, trailing commissions, or other continuing payouts?
• Are there financial incentives for you to recommend certain financial products?
• Have you ever been cited by a professional or regulatory government body for disciplinary reasons?
• Is your firm registered as an Investment Advisor?
• SEC registration?
• State registration?
• Do you have a business continuity plan?
• Will you sign the following NAPFA Fiduciary Oath?
  The advisor shall exercise his/her best efforts to act in good faith and in the best interests of the client.
shall provide written disclosure to the client prior to the engagement of the advisor, and thereafter throughout the term of the engagement, of any conflicts of interest, which will or reasonably may compromise the impartiality or independence of the advisor.
  The advisor, or any party in which the advisor has a financial interest, does not receive any compensation or other remuneration that is contingent on any client's purchase or sale of a financial product. The advisor does not receive a fee or other compensation from another party based on the referral of a client or the client's business.
  Following the NAPFA Fiduciary Oath means I shall:
  - Always act in good faith and with candor

  - Be proactive in disclosing any conflicts of interest that may impact a client
  
- Not accept any referral fees or compensation contingent upon the purchase or sale of a financial product
  Signature