10 Questions to Ask When Choosing a Financial Advisor in Champaign, IL

When it comes to your financial future, choosing the right advisor is a decision that should not be taken lightly. With so many options available, how do you know which financial advisor is the best fit for you? To make this important decision easier, we have compiled a list of ten questions that you should ask when choosing a financial advisor.

Fiduciary Duty

“Are you a fiduciary?” This is the most crucial question. A fiduciary advisor is legally obligated to act in your best interests, above their own.

“How does your fiduciary duty impact your recommendations?” Understand how they prioritize your financial goals over potential commissions or incentives.

Fees and Transparency

“How do you charge for your services?” Fee-based advisors typically charge a percentage of assets under management, while commission-based advisors earn commissions on products they sell.

“What are all the fees associated with your services?” Ask about ongoing management fees, transaction fees, and any hidden costs.

Qualifications and Experience

“What are your professional designations and how do they relate to my needs?” Relevant designations like CFP® (Certified Financial Planner™) or CFA® (Chartered Financial Analyst®) indicate specialized knowledge and training.

“How many years of experience do you have?” Experience can be valuable, but consider their experience specific to your financial goals and situation.

 

Communication and Client Service

“How often will we communicate and how can I reach you?” Regular communication is essential. Understand their preferred methods and how accessible they are for you.

“What services do you provide beyond investment management?” Financial planning is much more than managing investments.  Inquire about the team’s expertise in planning topics that are important to you such as retirement, estate, tax planning, etc.

Investment Philosophy and Approach

“What is your investment philosophy?” Understand if their approach aligns your risk tolerance and investment goals.

“How do you track and measure your performance?” Ask about their benchmarks and how they assess success for clients with similar profiles.

 

By asking these questions, you can gain valuable insights into a financial advisor’s qualifications, approach, and suitability to meet your unique needs. Remember, the right advisor should be someone you trust and feel comfortable communicating openly with.

Registered Representative of Sanctuary Securities Inc. and Investment Advisor Representative of Sanctuary Advisors, LLC. Securities offered through Sanctuary Securities, Inc., Member FINRA, SIPC. Advisory services offered through Sanctuary Advisors, LLC., a SEC Registered Investment Advisor. Tenet Wealth Partners is a DBA of Sanctuary Securities, Inc. and Sanctuary Advisors, LLC.

The information provided in this communication was sourced by Tenet Wealth Partners through public information and public channels and is in no way proprietary to Tenet Wealth Partners, nor is the information provided Tenet Wealth Partner’s position, recommendation or investment advice.

This material is provided for informational/educational purposes only.  Any hypothetical examples provided within this material are for illustrative purposes only. This material is not intended to constitute legal, tax, investment or financial advice. Investments are subject to risk, including but not limited to market and interest rate fluctuations.