Chosing a financial professional - CBC Radioactive series part VIII

Yesterday I discussed the many financial professionals out there and for most consumers, their titles can be very confusing. For example, a banker and an independent operator might be called a financial advisor which really doesn't tell you much about the specifics of their advice, expertise or education.

Here's a few things to keep in mind and ask your current or future financial pro:

• what's your industry eduction (a CFP - Certified Financial Planner is an industry standard)
• what type of clients do you currently serve (i.e. young couples just starting out, those nearing retirement, etc.)
• how long have you been in the industry?
• how long have you been in this particular position?
• will I work with you specifically or will I mostly work with your assistant or other team members?
• what licences do you hold (i.e. mutual fund's, individual securities, life insurance)
• what are your biases (all advisors have some and should be up front with you - for example, if an advisor only holds a mutual fund's licence, they're pretty unlikely to recommend individual stocks and bonds which would need a separate licence - there's nothing wrong with that, but you deserve to know it up front.)
• what does it cost to work with them and what do the actual investments cost or charge as a hidden fee (i.e. a banker might be salaried and thus charge you nothing to buy a mutual fund, but the fund itself has a hidden fee within it called a MER - management expense ratio).

For more questions that you should ask before you invest, visit my website at www.kelleykeehn.com, click the "fun resources" link on the left and you'll find it there.

Tune in today for tips on becoming intelligently frugal at 5:10 pm on 93.9 fm.