What to Ask Your Financial Adviser

By Jeffrey R. Kosnett, Senior Editor

From Kiplinger's Personal Finance magazine, November 2008

How to Break the Ice

You'll probably be asked in advance to submit a profile and answer a questionnaire about yourself. Once you arrive at an adviser's office, however, take charge firmly but politely. Even if you're upset because the misjudgments of some other financial outfit cost you a bundle, don't come across as belligerent. And even though fees and charges are important, haggling rubs many advisers the wrong way. Use these icebreakers:

Q: Here's my situation. Any ideas on how to fix it? Ask how the adviser has handled similar situations.

Q: How will we work together? How long will it take to develop a plan and put it into effect?

Q: What is your policy regarding phone calls, e-mails, or just sounding off about the awful stock market? Some advisers like to chat, while others will ask you to make an appointment or have a quarterly sit-down.

Q: What's your investment philosophy? Some advisers swear by index funds. Others want you to hand over your money for professional management, often in a RwrapS or separately managed account for a percentage fee. You need to agree on who has the final say.

Q: What's your procedure for telling me how I'm doing? Some advisers have access to extensive asset-allocation and risk-assessment software, such as LPL's WealthVision, which measures your holdings every night and compares them with your benchmarks. Others have less-sophisticated programs.

But this isn't a software arms race. You want to be taken seriously and given time and courtesy in exchange for your money, plus a road map to solving a problem or retiring richer.

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