Top 8 Questions to Ask Your Prospective Financial Advisor

How to find the right financial advisor?

If you're looking for your trusted financial advisor or planning firm, or you're considering switching, it's important to ensure that you establish the right fit.

This means alignment on goals, culture, and needs.

1. Are your recommendations truly in my best interest?

Imagine going to your doctor with a concern about your heart, and before running any tests, the doctor tried to sell you a pacemaker. The doctor then explained that you needed to act today before prices went up. Later you learned that the doctor was paid extra to promote this particular brand of pacemaker. While absurd for the medical profession, this scenario closely resembles much of the investment world. Make sure your advisor is held to a standard that puts your needs before anyone else’s.

2. Are your recommendations primarily focused in one area of expertise or comprehensive in nature?

For our clients, we serve as a single point of contact for all their financial needs. Jason Sherman is a CERTIFIED FINANCIAL PLANNER™, this includes coordinating every aspect of their financial needs. Each of our clients has a financial plan and Action Checklist detailing everything needed to address their financial goals. As required, these action items are coordinated with accountants, attorneys, and other professionals.

3. How will you successfully navigate the complicated financial planning and tax world to address my financial goals in the long run?

Jason Sherman is a CERTIFIED FINANCIAL PLANNER (CFP) and has a bachelor’s degree in Business Finance. Each year he studies more than 8,000 pages of financial text and is mentored by the country’s top minds in financial, legal, and tax planning. He has been serving clients for more than 20 years, managing assets for hundreds of high new worth clients.

4. How many clients do you serve, and how does their situation compare to mine?

We currently serve approximately 100 clients, totaling more than $80million in combined assets. We intentionally limit the size of our practice to ensure every client receives the service they need to address their financial goals. Our clients’ investments range from $500,000 to over $5,000,000. We primarily focus on the tax, investment, and estate issues for people who are within 7 years of retirement and want to retire on their own terms.

5. How often will I hear from you?

We typically meet twice annually. Client education is a big focus for our firm. We publish regular newsletters and videos explaining what the headlines mean for our clients. Each month we mail an account statement that clearly displays what is going on in your accounts. In addition, clients are always welcome to call or email any questions or concerns to a dedicated client-only email address.

6. What will be my total investment expense, how much will you be compensated, and where can I see this in writing?

As detailed in our client agreements, for our average client who has approximately $1 million, each quarter we deduct a fee equal to 0.30% directly from the accounts under our management. This deduction is detailed in the quarterly statement we provide to every client. To put this fee in perspective, most days the stock markets move more than 0.30%.

7. Will you help me plan for any and all financial problems I may encounter?

Yes. We have assisted clients in planning for an assortment of financial issues such as 401k plans, family deaths, disability, tax issues, real estate, debt, Social Security, Medicare, health insurance, college, gifting, and almost any other financial issue imaginable. While we certainly don’t have all the answers, through our network of resources, we will not stop until a plan has been found.

8. Where do you keep my money and how can I see it?

For your convenience and safety, we use LPL Financial as the custodian for our client assets. LPL Financial administers more than $1.24 Trillion in assets. As a custodian, LPL Financial holds your funds and provides reporting to you and the IRS. Your accounts can be viewed at any time at www.myaccountview.com.

Asking the right questions for your financial advisor

With the right questions regarding financial planning, you can make sure your goals are addressed in the long run.

Need a quick printable checklist of the 8 questions? Fill out the form below and we'll email it to you.

If you have questions or are interested in having a conversation about how we aim to empower our clients to retire on their own terms and maintain the lifestyle they've been accustomed to, let's chat: jsherman@shermanprivatewealth.com or call (248) 805 - 1123

Securities and advisory services offered through LPL Financial, a registered investment advisor, Member FINRA/SIPC

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