How to Pick the RIGHT Financial Advisor | 12 Questions

One of the most important questions you will explore in your financial life is how to (or if you should) choose a financial advisor. This is also one of the most difficult questions to answer because picking the right financial advisor comes down to more than just using the one that your friends use. Friends don't often know the difference between a financial advisor and a registered investment advisor, for example, yet you will replicate their choice which might not have been thoroughly thought out.

Their financial advisor may put them in the wrong investments for their stage in life, overcharge them, engage in too much trading activity which increases taxes and transaction costs, and most importantly, tout that they can outperform the S&P 500 Index, despite the fact that fewer than 10% of Financial Advisors can consistently achieve such an incredible feat.

This video puts rigor around selecting the best financial advisor for retirement for your specific needs by giving you 12 questions that you should ask before considering any financial advisor. Most importantly, it helps you work out who is on "team you" versus "team themselves."

VIDEO INDEX AND IMPORTANT LINKS

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00:00 Introduction
00:51 Do "People" Need a Financial Advisor?
01:21 Who Does Your Typical Client Look Like?
02:03 How to Tell if Your Financial Advisor is an R.I.A. (Registered Investment Advisor).
03:16 Is it Important for a Financial Advisor to Be Affiliated with a Broker Dealer?
04:23 Should You Buy a Private Mutual Fund Created by Your Financial Advisor?
05:33 Should a Financial Advisor Disclose Special Fee Arrangements to You?
05:56 How Do Financial Advisors Get Compensated?
06:14 What Services Do Financial Advisors Provide Beyond Picking Investments?
06:44 Should Your Financial Advisor Keep Your Funds in a Custodial Account?
07:20 Should Your Financial Advisor be Accredited in Social Security Analysis?
07:56 Should Your Financial Advisor Help with Taxes and Estate Planning?
08:31 Will You Have Access to Your Financial Advisor Once Hired?
09:10 Should Your Financial Advisor Tell You Where They Will Direct Your Money Before You Hire Them?

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Disclaimer: this video is for educational and entertainment purposes only and is not meant to be a substitute for legal, accounting, tax, or professional advice. If you have any specific questions about any legal, accounting, tax or other professional service matter you should consult the appropriate professional services provider.

[DevinCarroll]

Wow. I was talking to a prospective client the other day and she asked me these questions verbatim. Good list of questions here!

[dipaknadkarni]

Thanks.
I manage my own money.
I look at the lowest cost and low turnover.
It works.
Most people are not aware of this.
Everyone is trying to get a piece of the pie.
Less pie, less dollars in your pocket.
You are all able to manage your own assets.

[pamp]

So hard to trust someone else with your future. I do a ridiculous amount of research! I have had 2 friends whose husband’s were financial advisors. One ended up in jail for stealing others money the other ended up in trouble with the IRS for other shady dealings. That’s why I subscribe to your channel. Buyer beware. Thank you Geoff!!!

[takatsu]

I would go one step further than looking for an RIA and only do fee-based financial planning. A 1% of assets under management fee causes even RIAs to have a built-in conflict of interest. IMHO the gold standard is a fee-based CFP. Thanks for all you do Mr. Schmidt!

[pensacola]

We've done it ourselves, and have done great. Age 72, and 65. Retired 15 years...

[richardc]

Thank you Mr Schmidt, first. You must remember your heath is priceless

[taylorstover]

This is so timely, my financial advisor was excellent until we stumbled upon politics and hit heads...for the first time understood how like mindedness, or lack there of, can certainly impact money decisions. The break up was swift and mutual. No regrets, but now interviewing Financial Advisors with a new perspective. This video helps! Thank you.

[Dave_Lucas]

Actually Geoff, YOU are my (pro bono and virtual) financial advisor. Thanks for that. I might need a bit more than that soon.

[mikemadden]

I have a hard time believing some of them. I went to a two program series presented by a fiduciary. The first one was educational, the second one appeared to be a sales pitch for annuities. But he kept saying that he wasn’t promoting them. He wanted to set up individual meetings and we had a teleconference. That’s when he said he had resources to send us to to purchase products. Get educated and let the buyer beware. Great video!

[priola]

All of my siblings and I are in our mid fifties to 70, and all of us are looking for the right financial planner for each. Plus mom. Mistakes have been made in the past. I think we each just want to hire someone trustworthy, but man is it complicated. Thanks for your advice, and fingers crossed 🤞.

[david-ji]

Hello Geoff, new subscriber here - i'm delighted to find your channel. So first i want to thank you for your time and effort, and your refreshingly direct and honest style - it is much appreciated! A lot of valuable info from the videos i've watched so far... especially this one... half way through i was thinking oh i'd love to have you as my advisor, but i saw in one comment that you are not taking clients - slightly disappointed by that i must admit. Would you ever reconsider? I need good advice! 😅60 years old in a rather interesting unique situation.

[fred-e-vision]

Thank You. I’ve been speaking to a friend who manages a Primerica Brokerage. I know very little about financial advice. I watch often picking up a little here and there. Thanks Geoff.

[deciduous_]

This list is exactly what I needed.
Your videos always provide so much valuable content - far and away above many others. Thank you

[stephencoury]

Geoff, you are the greatest. You are my go to guy. I tell bunches and bunches of people about you and the channel called Holy Schmidt. But frankly, nobody listens.

[rik]

This is one of, if not the best talk you've had for me, anyway. I turn 70 in a little more than a year and will start to collect social security then. My plan is to continue working and I'm going to need some help managing my money at that point. This talk is enormously helpful.

[margarettekanealii]

Thank you this is perfect. I’m preparing for retirement and looking for a financial advisor and wasn’t sure of what questions to ask. I enjoy your videos

[davidpearson]

Your the best Geoff, we are currently looking for the right person to help us with investment and planning decisions-you have provided us with a great guide to help us decide who to choose.

[endorphinder]

Really well presented and useful information. I'll be making use of this list of qualifying

[jeffgriglack]

Nice to see the podcast up and running again.

[carolb]

Fantastic guidance, Geoff!!! Thank you ever so much for your time and effort in providing this to us!