A personal finance blog dedicated discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance.


Thursday, July 14, 2005

Questions to Ask Your Broker

Information is key to making sound decisions. Too often, people make investment decisions with too little information. Why? Because they don't know the right questions to ask. Below are some excellent questions to ask your broker BEFORE you make an investment:

  • How do you get paid for giving me advice?

  • Are you registered as an investment advisor and do you have a fiduciary duty to me?

  • Are you giving this particular advice to me in your capacity as a broker or as my investment adviser?

  • Do you or the firm you work for receive any payments from mutual fund firms to sell their funds?

  • What are your credentials in financial planning?
Before you talk with any advisor you should at the very least understand the different kinds of mutual funds and the different ways to buy them. I'll discuss that next.

NOTE: I found this information somewhere but do not remember where. I always try to give credit where credit is due.

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