In many cases while talking to a financial manager, even if it’s just for retirement planning, clients feel hesitant about asking questions. Before hiring a financial advisor one has the right to participate in an interview with the potential manager. This interview will determine if this person is right for the position or not. Some basic questions must be asked before accepting the financial manager. Remember, however, that interview answers may not always be truthful. A manager should be asked about his U4. U4 represents the report card. It is usually the financial advisor’s record. A financial advisor must be asked if he has any U4s or not. Before hiring a financial advisor a fee rate must be established between the two parties. Many people feel shy to ask a financial advisor about what he charges, but it is a universal question to all the managers. One should never be shy about asking this question.

Knowing the fee the manager charges helps to create a good relationship. It can be a very crucial legal question. A financial advisor can be compensated in different ways such as commission base, fee base, and fee only If the financial manager answers your questions but you can’t understand the explanation, then you should request that he write down the answers clearly. There are 2 basic questions about hiring a financial advisor. They are: how many clients does he have? & what type of vehicle does he drive? A financial advisor can have many clients at a time. It depends on his ability to manage multiple clients at a time. From this question the popularity of his financial management system can be understood. In the answer to the 2nd question- if the financial manager said that he drives a luxury vehicle, then it is fairly sure that he is successful.