Registered Investment Advisor
Certified Fiduciary License #20283
2. Is the Advisor’s Approach Objective?
Your advisor should avoid all conflicts of interest and work only in your best interest at all times. Does the advisor have referral fee arrangements with anyone?
The surest way to avoid a conflict of interest is to work only with an independent advisor who is compensated on the basis of a professional fee rather than a commission for the purchase or sale of stocks, bonds, insurance or annuity products that would be used to implement the investment strategy for your ward’s portfolio.
The advisor’s fees may be charged on an hourly basis or as an annual percentage of the assets he manages for you. It’s ok to ask about how the advisor is compensated!
3. Did the Advisor Ask About Your Ward’s Investment Needs, Objectives and Risk Tolerance?
A good advisor will ask you personal questions about the needs and circumstances of the ward. Your answers to these questions will enable the advisor to design an Investment Plan that will meet your ward’s needs for asset protection and income production. The advisor will also be able to design the Plan to meet your wards tolerance for investment risk and investment time horizon.
These are some of the Questions the Advisor Should Ask You on Behalf of the Ward
• Can you provide me with a statement showing the ward’s current investments?
• May I see a copy of the latest income tax return?
• Does the ward have any extraordinary medical expenses?
• Is there a capital loss carry forward?
• What is the ward’s current income and net worth?
• How much income will you need from these investments?
• What are the investment goals?
• How long do you plan to keep these funds invested for the ward?
• Do you have any unusual investment requirements?
• What is the annual rate of return that you expect from the ward’s portfolio?
• How much of a decline in the value of the ward’s portfolio can you tolerate during a 12-month period?
• Are the ward’s assets held as separate or community property?
• Does the ward have an up-to-date estate plan?
• Are the ward’s assets held in trust?
• Has the title been changed to the name of the ward’s trust for all assets that should be administered under the terms of the trust?
