Advisor Interview Questions

Asking the right questions when hunting for an advisor can save you a lot of time an headache down the road. So, here are a few questions you may want to ask, along with my answers!

What do you love about your job?

I love helping people make sense of a complex topic like financial planning because it varies from person to person and has multiple facets to it.  I enjoy serving my clients so they can focus on the things that are most important to them. I really enjoy this because I independently own and run the company!  My livelihood and my family’s future hinge on me being good at this and I can only do that if I really love it.

What services do you provide clients? 

Financial Planning from start to finish.  I can work the best when I know the full picture on the below:

  1. Cash Flow Analysis/Budget

  2. Insurance reviews

  3. Tax Planning

  4. Investment Management

  5. Estate Planning

  6. Education Planning

  7. Charitable Giving

I also help companies start and run their retirement/401(k) plans.

What is your investment philosophy? 

I invest for the long term when it comes to equities – like 5+ years is what that means.  There may be goals you have where we use lower risk investments for shorter term goals, but the stock market is a long game.   

I do not invest in individual stocks as I see it one step above gambling.  I also invest in a way that my client’s portfolios are liquid. In other words, I don’t tie them up in some crazy private investment, annuity, etc.  

I do invest in exchange traded funds (ETFs) and mutual funds.  This is done in an account in your name held at Charles Schwab, where I simply have the ability to invest for you and deduct my fee for my services. 

 

How Will We Communicate About My Investments? 

I like to have check-ins in the Spring and Fall.  I always cover investments and how they are doing, but I also prefer to continually update your financial plan.  So I’ll cover topics like insurance coverages, estate updates, retirement projections, and of course annual tax planning. 

If you can’t make it that “season”, we can schedule something.  I just find most people want to enjoy their holidays and summer spending time with family vs spending time with me.

 

How do I get paid?

I can get paid in a few ways, we just have to talk through your situation to see what’s the best for you:

  1. Assets under management fee (AUM).  I charge 1.25% annually (billed 0.3125% each quarter) for assets between $300,000 and $750,000.  That goes down to 1% if I manage over $750,000 (billed 0.25% each quarter).  This is the primary method in which I work with clients.

  2. One-Time Plan. If you’re looking for a financial plan only, the cost is $4,000. Half is due up front and half when it’s finished. There are limited amount of one time plans I take on at any point in time to make sure I’m delivering the best service to my ongoing clients.

I do not sell any financial products.  I earn no commissions or referral fees.  I believe this is in your best interest as my fee is not hinged on you buying a product that may not be the best for your situation. 

How will you measure and evaluate my investment performance? 

It’s probably not going to be against the S&P 500.  I invest in a variety of types of investments:  large companies, mid-sized companies, small companies, domestic (U.S.), international, emerging markets, real estate, intermediate bonds, short term bonds, and money markets – just to name the main ones.  So, I want to know how each of those different components perform compared to the index they most closely reflect. 

My portfolios are spread out amongst many types of investments, so you can’t compare the whole to one part of the equation.

If you have any other questions as a result of reading the above, send them my way via email: jarrod@chisholmwm.com