How to Find a Good Financial Planner or Financial Advisor

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Question 11: Do You sell insurance?

Don't say life insurance.  Just say insurance.  Some advisors do, some not.  Some sell only life insurance, some sell all insurance.  Again, no judgements yet, just an answer, but let them tell you what they do and don't sell.

Question 12:  If they sell insurance ask them Which company you sell insurance for?

The correct answer here is that they can sell insurance for more than one insurance company.  Financial planners who can only sell insurance for one company are called "captive."  The insurance business changes constantly and the best company and policy for you may be different than for your someone else.  This may be a strike against this financial advisor.

If you don't hear the financial advisor say that he can sell you life insurance from many different insurance companies tell them your brother has a good policy from MetLife and ask if they can sell you a policy from them.  It doesn't matter whether they can do MetLife specifically only whether they can do other companies.  Don't let them off the hook when they tell you that they know for sure that their product is better than MetLife.  Say "Yes, but CAN you sell me a MetLife policy?"

Question 13:  Can you invest me in American Funds Mutual Funds?

American Funds is (rightly or wrongly) one of the biggest and most respected mutual fund families in America.  If the financial advisor cannot sell you American Funds then he is captive and can only sell you either his company's proprietary funds or a certain list his company has kick-back agreements with.  Note, it does not matter if he WOULD invest you in American Funds or if he thinks it is a good idea.  All that matters is CAN he sell you American Funds.  If he says no, then ask why.  Be very suspicious of the answer and listen for signs of being restricted.  If he says he WON'T ask why.  Then ask if he CAN.

Question 14:  Will I always meet with you?

To avoid the kind of arrangement where the slick very qualified, very experienced financial planner meets with you to get you until you become a client, but then suddenly all of your meetings and phone calls are with another (usually junior) financial advisor, ask if you will always meet with them.  Ask if they are part of a team.  If they are not ask what happens when they go on vacation.

Page 7 - How To Find a Good Financial Planner

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