Monday, July 15, 2024
Banner Top
Print Friendly, PDF & Email

Introduction to Financial Advisor FAQs

Considering a financial advisor or a certified financial planner? You’re not alone in your curiosity. Research from our Canadian market research panel tells us the financial planners are one of the top information sources Canadians turn to for information about complex financial topics. Over 28.7% of our survey respondents chose that over other methods, second only to doing an online search (30.9%) Let’s explore the top 20 questions Canadians have about financial advisors and the financial planning process.


1. What Does a Financial Advisor Do?

A: A financial advisor helps you manage your money, including investments, taxes, estate planning, and more. Think of them as a personal financial coach.


2. How Do Financial Advisors Charge?

A: Financial advisor compensation can be based on a flat fee, a percentage of assets managed, commission, or a combination.


3. Are Financial Advisors Worth It?

A: Absolutely, especially if you feel overwhelmed by managing your finances or want to maximize your financial potential.


4. What Should I Ask a Potential Financial Advisor?

A: Questions about their qualifications, experience, services offered, and how they’re compensated are a good start.


5. How Do I Know if My Financial Advisor is Good?

A: A good advisor communicates clearly, understands your goals, and has a solid track record. Transparency and trust are key. They don’t need to be your new best friend, but there should be some notion of “fit” in terms of their style and personality. The most important factor is ensuring you find someone you can trust with your money.


6. Can Financial Advisors Steal Your Money?

A: It’s rare. Regulated advisors have strict ethical and legal obligations. Always choose a reputable advisor.


7. What’s the Difference Between a Financial Advisor and a Financial Planner?

A: A financial planner generally provides comprehensive planning services, while an advisor may focus more on investments. Learn more about the process of becoming a Certified Financial Planner


8. Do I Need a Financial Advisor for Retirement Planning?

A: While not mandatory, an advisor can provide valuable expertise in building a robust retirement plan.


9. How Often Should I Meet with My Financial Advisor?

A: At least annually, or more frequently if you have significant changes in your financial life. For example, life changes such as having a new child, or going through a divorce, may signal that it’s time to review or change your life insurance.


10. What Qualifications Should a Financial Advisor Have?

A: Look for certifications like CFP (Certified Financial Planner) or CIM (Chartered Investment Manager).


Choosing a financial advisor is a big decision, and being armed with the right questions can make all the difference. Dive into the world of financial planning with confidence, and remember, there’s no such thing as a silly question when it comes to securing your financial future.

Tags: ,

Related Article


Leave a Reply