FAQ

Questions to Ask Financial Advisors

• Are you a Fiduciary?

  Fiduciaries work in the best interest of the client. Non-fiduciaries only need to recommend products that are “suitable” — even if they’re not the lowest-cost or most ideal for you. That’s why you want to know about the fiduciary rule and ask potential advisors if they follow that standard.

  @ANCHORY we proudly follow the Fiduciary standard.

• How do you get paid?

  Advisors can use a variety of fee structures. To keep it simple and avoid conflicts of interest, we think you should focus on fee-only advisors. They don’t get commissions for selling products. Fee-only advisors might charge a percentage of the assets they manage for you, a flat fee for services, or an hourly fee.

  @ANCHORY we offer several Fee-Only Services please see the above plans.

• Who is your custodian?

  Ideally, your financial advisor has hired an independent custodian, such as a brokerage, to hold your investments. Be careful if a financial advisor acts as his or her custodian, you could run into potential danger à la Bernie Madoff, the notorious financial advisor who defrauded clients through a multibillion-dollar Ponzi scheme. Asking this question provides an important safety check.

  @ANCHORY we use TDAmeritrade & Charles Schwab as custodians.

• What professional credentials do you have?

  You should work with an adviser who has some sort of financial planning or investment-related credentials. Two of the most popular are the Certified Financial Planner (CFP) designation and the Chartered Financial Analyst (CFA) designation. Nearly all credentialing programs I am aware of have a work experience requirement, so you can be assured that if you hire a credentialed adviser, you won’t be their first client.

  @ANCHORY you will work with a dedicated advisor that holds the Certified Financial Planner (CFP®) designation.

• What tax hit do I face if I invest with you?

  This question helps ensure the advisor has your tax bill in mind when making financial decisions. Asking about taxes and fees is a way to explore what your estimated net return might be.

  @ANCHORY we care about your bottom line. That means were are being as tax-efficient as possible.

• What’s your investment philosophy?

  It’s important to ensure you have a good understanding of the advisor's investment philosophy. Here’s why: You want to make sure the advisor not only has a process in place for when to buy certain investments but also when to sell them. The later is something a lot of advisors are missing in their investment approach.

  @ANCHORY we believe your Investments should not only adjust with your changing personal circumstances but also take into account the current market environment. That is why we created our unique rules-based process and non-consensus approach.

• Why You Should Consider Hiring a Certified Financial Planner (CFP®) for Your Financial Needs

  Discover the benefits of working with a certified financial planner (CFP®). Certified Financial Planners provide comprehensive financial planning, investment advice, retirement planning, estate planning, tax planning, and insurance planning. Learn how a CFP® can help you achieve your financial goals and live a financially secure life."

  Learn more