Advisor Interview Questionnaire
When you look at the challenges in today's financial world, do you feel like an underdog? What would it take to make you a winner? On the following pages you'll see a list of the most important questions that you should ask each advisor you evaluate. Make copies of these questions and bring them with you each time you meet with a financial services professional-and write down what they say. Many of the advisors will give you answers that conflict with the information in this book. A select few will not. They are the advisors who can help to ensure your success now and during the years and decades to come. They are the advisors with whom you should work.
BUSINESS STRUCTURE
- Are you the only Advisor who will be familiar with and responsible for my account?
- What is your Business Succession Plan for when you slow down or retire?
- What access do you have to other professionals who provide service in areas outside your expertise?
- Do you own your firm or are you an employee of a company?
- Describe your process for meeting with clients, from the initial conversation onward.
- How often will we meet to discuss my account?
- How does each meeting serve my best interests?
- What is your process for discovering and assessing my goals and objectives relative to my current positions?
- What methods do you use to determine the rate of return necessary for me to meet my goals?
- How do you evaluate my tolerance for risk in pursuit of those goals?
- Do you prepare Investment Policy Statements for clients?
- What type of information is included in the IPS? (Ask for a copy of a sample IPS.)
- Do you use modern portfolio theory to design efficient portfolios that provide the highest possible return for a given level of risk?
- What process do you use to manage risk in clients portfolios?
- Do you offer strategic, tactical and technical asset allocation strategies?
- Who makes the asset allocation and manager selection decisions for clients?
- What are your qualifications in these areas?
- What kind of team (analysts, researchers, and so on) at the firm helps to make these decisions?
- What specific criteria do you use to evaluate money managers capabilities?
- How did you determine that you are the most capable person to make these decisions?
- Who are your investment partners and portfolio strategists?
- What specific tasks does each undertake in the investment process?
- What investment methodologies do they use to make asset allocation decisions and manager decisions?
- How have they performed during bull and bear markets?
- What types of investment vehicles do you offer to clients, and why?
- What do most of your clients invest in? Do you tend to favor one type of investment vehicle over another, and why/or why not?
- How would you determine which investments are a good fit for my situation? What factors would you consider when recommending specific investment vehicles for my overall plan (amount available to invest; passive versus active; quality of investment managers)?
- Do you offer a range of portfolios with various levels of risk that I can choose from based on my risk tolerance?
- Are you limited in any way as to the types of investments you can offer?
- What is your rebalancing policy? How often do you typically rebalance portfolios? Do you employ both strategic and tactical rebalancing methods?
- Does your professional staff meet formally each quarter to review recent market events and how they affected client's portfolios, as well as to assess if any changes need to be made? (If so, ask to review the notes from the last meeting.)
- Do your reports enable me to see how my portfolio performed relative to (1) major market indices, (2) a custom designed index that matches up with my portfolio's asset allocation, (3) other major assets classes, (4) my investments peer groups, and (5) my goals and objectives?
- What amount of real-time information, such as performance reporting and taxable gain/loss data, can I access through you Web site or other technology?
- What licenses do you hold? Can you invest in all asset categories, including stocks, bonds, annuities, 529 plans, mutual funds, third-party managed accounts, real estate, insurance, etc.?
- What professional titles or designations do you hold?
- Are you a registered investment advisor?
- Do you have a copy of you Form ADV that you would share with me?
- Have you been penalized by the Securities and Exchange Commission or other regulatory organization?
- How are you paid for your services?
- Do you receive greater compensation for selling one type of investment over another or investments from one provider over another?
- How is your compensation structured to avoid any conflict of interests?
PryorMcCormick Investments
4000 Southlake Park, Suite 200
Birmingham, AL 35244
Securities and investment advisory services offered through Sterne Agee Financial Services.
Member FINRA/SIPC.
PryorMccormick is not an affiliate of Sterne Agee Financial Services.