10 Questions to Ask Your Planner

How do you prepare for an interview with a financial professional and more importantly, what questions should you ask?
A first meeting should involve the planner asking the majority of the questions.  A second or even multiple meetings are common.  Below are some of the questions you should get answers to before putting pen to paper.
The following 10 questions are provided by the Financial Planning Standards Council (the association that regulates Certified Financial Planners).  I’ve added my own commentary.
1.       What qualifications do you have?   Some designations may require years to even qualify to try to obtain.  Others can be gained by participating in a weekend seminar.
2.       What experience do you have?  Time in the chair and having participated in both up and down markets provides a better yardstick.  This business can be difficult during good times.  When bears overtake bulls it can be much worse.
3.       What services do you offer?  It’s about impossible to do everything well.  A good advisor should be able to know what they don’t know and be able to refer to others when it goes beyond their training and licensing.
4.       What is your approach to financial planning?  Standards are improving but many don’t provide anything beyond investment buy/sell advice.
5.       Will you be the only person working with me?  In some firms, you may not qualify to garner the time and attention of the top dog once your assets are on the books.  Best to know who you will be working with.
6.       How will I pay for your services?  Any good business relationship should be based upon knowing what you have to pay and what you can expect to receive in advance.
7.       How much do you typically charge?  Are there any additional fees for anything not covered in what we’ve talked about thus far?
8.       Could anyone besides me benefit from your recommendations?  It’s in your best interest that the individual is successful or they won’t be there to serve you.
9.       Are you regulated by any organization?  More importantly, how do you fix problems and what is my recourse if we agree to disagree?
10.   Can I have it in writing?  More sophisticated firms and those adhering to the highest industry standards will have you complete and sign a Letter of Engagement or similar.
If you are not comfortable with the answers best to leave the pen in your pocket.