3 Things To Discuss With Your Financial Advisor Before Committing

Share Article

Dan Cunningham, founder and financial advisor at Vermont-based firm One Day In July, recommends three things to discuss with your financial advisor before signing on the dotted line

News Image

U.S. investors are currently losing six out of every seven dollars of market return to high fees, poorly timed behavior, and the bad advice of their financial advisor. Unfortunately, most investors are unaware of the real reasons why their portfolios aren't making them money and are staying the course with little financial benefit. Dan Cunningham, founder and financial advisor at Vermont-based firm One Day In July, recommends three things to discuss with a potential financial advisor before signing on the dotted line.

Fees - It has been shown time and time again that it is primarily fees and not asset picking skills that drive underperformance in portfolios. While many financial advisors point out the importance of low costs, they will then turn around and charge 1% or more for themselves. The result for the investor could mean 10 extra years of work or more than a 50% depletion of retirement savings. Talk with your advisor about their fees to see how they may be affecting your portfolio in the long run.

Read the Fine Print - Many advisors are compensated by way of "sales charges" to sell you certain funds, even when they aren't beneficial for your portfolio. Often these charges are buried in the fine print so you're either unlikely to find them or don't fully understand that your advisor is making money simply because they are in your portfolio. Ask your advisor to clearly explain if they are being compensated to recommend certain funds and where that compensation is coming from.

Long-term Strategy - Does your current financial advisor understand your true tolerance for risk over the long term? If not, you may be setting yourself up for more stress than you're comfortable with. Talk with them about your goals (present and future) and make sure that they (and not a call center) will be there for you when you need to talk through things – especially when there is a pending financial crisis. A solid financial planning strategy starts with a long-term vision and not a quick, short-term return.

Bottom line - It's your money and you should feel comfortable knowing your advisor has your best interests in mind. If you have any worries or nagging suspicions that something just isn't right, rethink the relationship. You can keep asking questions until you're comfortable or look for another financial advisor.

For more information on One Day in July, and to learn more about Dan Cunningham’s approach to investing, visit http://www.onedayinjuly.com.

About One Day In July
Vermont financial advisory firm One Day In July, based in Burlington, VT, helps individuals, non-profits, and businesses save and invest using low-cost index funds. Index funds are sweeping the nation, and they are one of the fastest growing trends in American investing and financial planning. By focusing on reducing fees for investors, including those of the financial advisor, One Day In July is bringing long-overdue changes to investors in Vermont and other states. To learn more about the services offered by One Day In July, please visit http://www.onedayinjuly.com.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Charlotte Longley
PMG PR
+1 (802) 863-3929 Ext: 117
Email >