Here are things that Financial Advisors often say-
1. Have you worked with a Financial Advisor before?
They need to know what financial baggage you carry along with you, right? Asking this question helps the advisor in how to go about the relationship and also gain an insight into you, their prospective client. There can be only two situations - either you have worked with one before or you haven’t. If you have, they’ll figure out what they can do to give you a different experience than you have had earlier. If not, you’re in for your first financial advisor experience.
2. What are you doing presently?
Don’t we all want to know? Especially, if you are about to get into business with someone that is probably going to go on for a long time. The best part of this question is that it can very well be normal and a part of the casual conversation. Just like one asks about the weather but it can progress in whatever direction both the parties like.
3. Do you believe that you are reaching your current goals?
It is always an option to retrospect. This question helps the advisor get a hint as to why the client is looking for a financial advisor. Depending on what your answer is, the financial advisor can be a guiding presence and add value. Whether the reassurance is needed or not, it is always good for you to know that the advisor is here to help you in your financial and investment-related decisions.
4. Do you have prior investment experience?
Asking about the past doesn’t restrict to knowing if you had a financial advisor earlier. Advisors would also like to know if you have any prior investment experience. If you have invested in stocks or anything else. It also gives the financial advisor how you deal with your investments. If you have in the past and not so much of late, why not? The usual questions. No third degree.
5. What is important to you?
Financial Advisors are not all about the money even if finance is in their job title. They deal with people, their aims, feelings, desires, dreams, and aspirations just as they deal with money and investments. So when they ask you- ‘What is important to you?’ they almost always mean it. You might not have a full blown therapy session but it will definitely work out. For instance, I know a college friend who had invested in a company that followed a practice she was against. Talking it out with a financial advisor helped her know that. See? it’s not always about money and profits.
6. Five years down the lane, where do you see yourself?
We have all been asked this question at some point in our lives. Where do you see yourself in 5 years? It’s basically to see what are your short and long-term plans. Everything doesn’t have to be about retirement or even about life past 40 or a certain age. Being asked this, you will give them an insight into how you have planned your life or not. If not, along with them you can take the first step whether it is about a college fund, fancy wedding, family vacations, or retirement plans all of it can be taken care of.
7. Do you have any pressing concerns?
Isn’t this a necessary question in any situation and not just a financial situation? Whatever you answer to this becomes the primary concern of your financial advisor. If your advisor is able to address this concern, you are likely to go a long way together. If they are not able to do so, switch and the best thing you can get out of this situation is get a recommendation for another financial advisor.
8. Are you a glass half full or half empty kind of a person?
Your outlook on life has a huge impact on everything you do in life even the financial decisions you make. It is important for your financial advisor to know how you tend to react to and in different situations. Knowing whether you are an optimist or a pessimist is how your advisor is going to make a plan tailored for you and just you.
9. How do you make important financial and investment decisions?
It is essential for your financial advisor to understand how your mindset is and how good you are at making decisions. Based upon that they decide on the degree of involvement they are going to have in your decisions. Whether all you need is a little nudge or constant advice is what they’ll decide based on your answer to this question.
10. Are we in this together?
So by now, you both are likely to have asked all the necessary question to do business together. From what got you in touch with them in the first place to how much involvement of theirs you want. Now, if all of this sorted out, that’s when you decide if you’re in this financial and investment journey together or not.
Asking questions is essential either way to work together. Both the parties don’t have to necessarily agree on everything. Sometimes a common ground works just as good. But if you are beginning out in the world of finance and are about to invest in something, it will help to have a Finance Advisor around.