Questions to Ask a New Financial Advisor By Investment Specialist Alan Mercurio In Louisville, KY

www.mercurioadvisors.com

When you sit down for the first time with a prospective Financial Advisor, he or she is going to ask you all kinds of questions. Usually, an Advisor´s objective at the first meeting is to determine if you are the type of person he or she wants to take on as a client. The criteria span the spectrum from your personality, to your goals, and of course, your investable assets. You may find yourself telling a potential Advisor personal and financial information you do not even tell your close friends or family members. In the end, the Advisor will tell you if he or she is willing to take you on as a client and schedules future appointments to lay out a financial course for your life and show you ways you can accomplish your objectives by investing in certain products. Before you know it, you have a new Financial Advisor, but think about it for a moment... Who chose whom?

A potential Financial Advisor will run you through the twenty question routine, but what do you ask the Advisor? It is important that you develop criteria by which you choose you new Advisor. The following are some questions and considerations I recommend you incorporate into your list of criteria when interviewing a prospective Financial Advisor:

Is the Financial Advisor securities licensed or a registered investment advisor? A lot of self-acclaimed Financial Advisors who host seminars and other events to attract clients are often nothing more than licensed insurance agents touting the benefits of fixed or indexed annuities. There is nothing wrong with these products; in fact, I recommend them to my clients when I feel it is the right fit for them. Nevertheless, for you to get an unbiased proposal on types of products or investments that would be best for you, it is critical that you deal with somebody that knows and can legally discuss other types of investments such as security investments. Your investment experience and objectives, risk tolerances, and life goals are different than the next person. A Financial Advisor who is insurance licensed only is like Barney Fife with one bullet in his gun.

Along with licensing and registrations are credentials. The most recognizable certification is the CERTIFIED FINANCIAL PLANNER™ practitioner, and this is definitely a noteworthy designation; however, there have been certifications given equal weight over the years that were misused by Advisors to build false perceptions among prospective clients of the Advisor´s qualifications and capabilities. Remember this – new credentials issued by the financial services industry only hold as much weight as they are given. Some credentials are earned by attending classes and passing exams while others are obtained by simply paying a fee.

Let´s get more personal. How long has the Advisor been in his or her profession? How long has the Advisor lived and worked in the local area? Longevity in the business does not override other factors, but it can give you a perspective on an Advisor´s experience and his or her ability to build and retain clients. It may also be an indicator of whether or not the Advisor is going to be around to serve you in the future.

A really good question is to ask prospective Financial Advisors their motivation for getting into the business. What drives them to be a Financial Advisor? This question might throw some Advisors off track. Naturally, there is the standard answer, "I like to help people," but can an Advisor give you a foundational reason? Perhaps an event they experienced in life, either to them or someone close, motivated them to do what they do. All Financial Advisors have to make a living, but do they take care of their clients because they have to, or they want to?

Ask for client testimonials. Some Advisors ask clients to give business-relationship testimonials at seminars, special events, and even on their business websites. Of course, the Advisor is going to choose clients with whom he has been successful, but a lot can be gained from talking with an Advisor´s current clients. Sometimes what is left unsaid is as important as what is said.

The questions you can ask prospective Financial Advisors are as limitless as the questions they can ask you when you sit down to a first meeting. The questions and considerations mentioned above are just a scratch on the surface. If you are serious about changing your Financial Advisor, you have some homework. Develop your interview list for the next Advisor. The Advisor will be sure to have one for you.

For more information about this or other topics related to financial planning and investments, visit our website at www.mercurioadvisors.com and click on contact us for your complimentary plan review.

Alan Mercurio

Mercurio and Associates Inc.

330 N. Evergreen Rd., Suite #3

Louisville KY 40243

502-253-9366 or 866-672-5456

Registered Representative offering securities through First Allied Securities Inc. A registered Broker/Dealer Member FINRA/SIPC. Investment Advisor Representative offering services through First Allied Advisory Services Inc.