5 Questions to Ask a Financial Advisor

Inquire about areas of expertise, compensation arrangements, and credentials before signing on for financial help. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_improvingfinances&utm_content=39176&elqTrackId=fb9884cccd614d34a264e8a2da5253ac&elq=f04c2ede09f745c18327011684370ab5&elqaid=39176&elqat=1&elqCampaignId=18447) [Improving Your Finances] Improving Your Finances with [Christine Benz]( [Christine Benz] [5 Questions to Ask a Financial Advisor]( Investment guru Bill Bernstein once quipped that by the time you know enough to select a high-quality financial advisor, you could probably manage your assets on your own. Sadly, that's not all that far from the truth. The financial-advice industry features a bewildering array of titles, designations, and compensation schemes. Some advisors are fiduciaries, some aren't. And even though advisors must obtain licenses if they're selling securities, and pass tests and log work experience if they want to earn certain credentials (such as the certified financial planner designation), there aren't any minimum standards in place for calling yourself a financial advisor. You could work your whole life selling cars and no one would stop you from hanging out a shingle as a financial advisor tomorrow; you'd be competing head-to-head with advisors with years of experience and prospective clients wouldn't necessarily know the difference. It's no wonder so many investors shortcut the process, opting for recommendations from friends and family members with limited financial backgrounds. Nor should it come as a surprise that lesser advisors who happen to be strong salespeople can rake in clients, while skilled but less slick financial professionals toil in obscurity. People skills are important when it comes to getting financial help; financial matters are highly personal, so you need to have a basic comfort level with any individual you're entrusting to help you out. But you also need to conduct due diligence before signing on with an advisor. The process can be broken down into two rather manageable steps. The first involves taking stock of your needs in the realm of advice consumption: What are you really looking for? The second step, which I’ll focus on today, is to take what you just learned about your own needs and goals to identify an advisor who can help you meet them. [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] [What Belongs on Your Preretirement Radar?]( Vanguard retirement specialist Maria Bruno discusses key ways that pre-retirees can gauge the viability of their plans. [Read More]( [Dave Nadig: The Future of Indexing, Governance, and Financial Technology]( A leading financial futurist on whether open-end funds will become obsolete, the value of direct indexing, “ESG 2.0,” and more. [Listen]( Listen Now Get the latest investing insights and market updates with [Morningstar’s podcasts]( available on your iPhone, iPad, Android, PC, or smart speaker. Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2022 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602