Asking question is never a bad thing. In fact, only fertile minds are inquisitive.  I wrote about 7 basic checks for hiring financial planner 3 days ago. Now, we move ahead with the familiarity part. Lets ask some open-ended questions before hiring financial planner.

After you have checked these outer most tough features, its time to get under the hood. The checks will turn to open-ended questions from here.

Below are the six most important questions you should consider asking them. If anyone can’t (or won’t) answer questions to your satisfaction, he or she may not be the best match.

6 Questions to ask before Hiring Financial Planner for Life

1. Do you mind if ask or email you a few questions?

Now, this seems ridiculous to ask. But if the planner is not  open to talking to you or not comfortable to set up a call/respond to email on questions like how they operate their business, their training, and background or investment style, they may be in charity mindset.

Yes, many financial planners think they are doing a favor by “making people wealthy” . They feel clients should just go to the website, check credentials, get impressed and invest.

It might be better to find someone who is willing to answer your questions.

2. What’s your philosophy in Financial Planning & Wealth Creation?

Most of the planners are chasing returns. Very few know about risk. And, very few talk about it. Reason- they believe in keeping clients happy.

The answer you should look here is the belief system on which your planner is working. Is he dependent on future for your returns?

Or he thinks following a right process is more important. Is he sure returns will be an absolute by-product if you follow a strategy?

Is he committed to following and make you follow that strategy? Or he will shift goal post when there is a storm.

3. Are you comprehensive in approach? What kind of continuing education do you practice?

Many of us come from a specialized field. A person who has worked a good chunk of his life in Insurance will see insurance sector different than a person who has worked for a MF company. But when you acquire license it is expected that you lose inhibitions.

Many financial planners think insurance is worthless and direct equity a scam. Because of their own experiences.

Look for a person with no biases of his past. It’s difficult but important.

Also, check how your planner makes himself informed or he thinks whatever learned is enough. Does he spend the time to educate himself on a continues basis? It’s important to be constantly learning, especially in this field that can change. Like economy , fixed income and laws of the land.

4. How do you make money? How do you invest?

If you’re confused at the answer you get to this question, that person may not be right for you. If the answer is:

“Money is the most important thing to me…”, or

“Money is the least important thing to me…”

You are looking at a person who has rehearsed the answer or never heard this question before. Point is money is somewhere in the middle of these extreme answers.

The planner should have figures and revenue model at his tips. He should be aware how much he is making currently, his mission for his firm in future and his business progress. If he is dodging or glorifying, he is not giving you a true picture.

See his website and listen to his interaction how comfortable and transparent is he when he is talking about his revenues & fees structures.

5. What kind of person are you when you are not a financial planner?

It is very important to see if your financial planner is a normal person in society. Does your planner look like a social person? Does he have friends or family? He yes does he like to spend time with them?

Many times the planner and client are in different cities of the world. It is important to note the atmosphere in which your planner works, Check for social profiles and check if they have elements of “showoffs and fakeness”. Yes, I have seen planners hiring professional photographers to click some social photos for their FB & Instagram profiles.

Many financial planners complain that I miss my family time. Or I am always working, It feels like I can hardly breathe, and I am not enjoying my work.

It is vital to take time for self and family so that it helps to best serve the clients. Taking breaks and vacations helps reset and renew.

6. Why did you become and still are- a financial professional?

The answer here will tell how passionate they are about their work and connects you to them in a personal way.

I became a financial professional to help investors understand money and investments in a way that wasn’t available when I was growing up in age and career. I want you to have a plan, a workable agenda, and ease of investing about your personal financial future. That truly matters to me.

The client and planner should get to know each other. Whether you work together or not, it’s important that you are comfortable and understand each other first. Hiring financial planner is a tough job- but when does easy things help us grow more in life?

Hope you liked this 2 part article series on hiring financial planner.

Let me know your views and also share this series with your family and friends.