How to Interview a Financial Advisor

 Blog Title: Navigating the Financial Waters: How to Interview an Investment Advisor



Introduction: Embarking on a journey towards financial stability and growth often necessitates the guidance of a skilled investment advisor. Yet, choosing the right advisor is as crucial as the decision to invest itself. This blog, by me, Dividend John, your guide on Twitter to prudent dividend investing, delves into the art of interviewing an investment advisor, drawing from my own experiences and industry best practices.



My Personal Experience: My first investment advisor, regrettably, placed all my investments in tech just before the bubble burst. This experience taught me the value of a balanced portfolio, highlighting the importance of firms that not only grow earnings but also consistently increase their dividends. This approach is aligned with the strategies of renowned investors like Warren Buffett. Understanding this balance is key to long-term financial success. Im the first to admit that I’m heavy in the Canadian banks and it’s served me well, but I wouldn’t advise going as heavy as I have in any one sector.

So if you don’t feel comfortable making the choices for yourself on what stocks , etfs to buy, it’s way better to meet with an advisor than to build your portfolio from what some dude tells you to do while playing golf.

So here we go…..



Questions to Ask Your Potential Advisor:

  1. Background Check: What credentials and experience do you have? (See the CFP Board's guide on verifying financial planner credentials.)
  2. Investment Philosophy: How do you balance growth with stable, dividend-yielding investments? Morningstar offers insights into different investment approaches.
  3. Risk Assessment: How do you evaluate and manage risk? Investopedia has excellent resources on risk management basics.
  4. Performance Tracking: What’s your track record during market downturns? Check Bloomberg for market trends and advisor performance.
  5. Fees and Compensation: Are your fees commission-based or flat-rate? The SEC's Office of Investor Education and Advocacy provides details on understanding advisor fees.
  6. Communication Frequency: How often will you update me on my portfolio's performance?
  7. Client Reviews: Can you provide references or testimonials? Websites like Yelp and Google Reviews can offer client reviews.


Reading Online Reviews: Online reviews can be a goldmine of information about an advisor's reputation and client satisfaction. Websites like AdvisorHub and Glassdoor can provide insights into an advisor's performance from both clients and employees.

Conclusion: Selecting an investment advisor is a decision that should be made with as much care as your investments themselves. Armed with the right questions and resources, you can find an advisor who aligns with your financial goals and philosophy.



Disclaimer: This blog is for informational purposes only and does not constitute financial advice. Always do your due diligence before making financial decisions.

If you  like what I’ve shared above you’ll really enjoy my book Too Rich to be Stressed: Freedom from Dividend with Dividend Investing Too Rich to be Stressed: Freedom with Dividend Investing

Or my new book for kids and teens Playbook for Young Investors: How to Build Wealth with Dividend Secrets Playbook for Young Investors: How To Build Wealth With Dividend Secrets


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