Before we begin, I want to clearly inform you that none of these questions are necessarily a deal breaker. Use these questions to gain insight into your advisor so you can make an informed decision about whether or not you invest with them.
I had not heard of the company they were meeting with but a quick search showed they were primarily an insurance company that dabbled in investments. Many of these firms are trying to branch out into other investment areas as a means to get you to invest in their main form of compensation.
#3 – Are You A Registered Investment Advisor / Fiduciary?
A fiduciary is an investment advisor who is legally obligated to put their clients best interest before their own. That means they are required to recommend the best funds and advice to you that will make YOU the most money – not them.
#4 – Are You Or Your Company Associated With A Broker-Dealer, And If So, When Will I Know You Are Working As A Sales Agent Rather Than A Fiduciary?
In the investment world, financial advisors can be both a fiduciary and a sales agent earning a commission in the same office.This question will determine if they have the ability to switch roles and if they do, how they will notify you of the switch.
#5 – Do You Earn A Commission Based On Selling Products?
Again, this question is point blank and will determine if they are ever compensated for selling a certain fund or product. This does not mean that they are not an honest person but it is something to be aware of.