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Ten Questions to ask your Financial Adviser NOW - Part Two

The second in a two part series, FundSource looks at ten questions you should ask your financial adviser, especially as our financial environment becomes more complex.

Thursday, June 03rd 2004

We can't tell you exactly how to find the perfect financial adviser. But the following questions can help you find a new adviser or get the most from your present advisor. And even if you think you already know the answers, you're almost guaranteed to profit from asking again.

6. How are you compensated for the work you do for me? Do you receive any compensation or incentives from any product or service you recommend?

In some ways, this is one of the most important question you can ask, because it can expose potential conflicts of interest. Just bringing up the topic puts an adviser on notice that you know the potential for a problem. Whatever type of compensation your advisor receives, make sure you understand it in advance.

An advisor paid on commission can have a direct financial stake in what you buy and (in some cases) a stake in how rapidly your portfolio turns over. There are excellent financial planners either way but it should be important for the investor to understand.

7. Are you currently invested yourself in those investment you are recommending to me?

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Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

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