Exponent Investment Management can be instrumental in helping you navigate life changes like buying a home, raising children, caring for aging parents or starting a business. They also help with investing and retirement planning. But before you entrust your money to a professional, there are important questions you should ask.
Whether they’re registered as a fiduciary or not, how they earn their money can make all the difference. Specifically, you should understand whether they are compensated on a commission basis or if they adhere to the fiduciary standard (which holds professionals to a higher level of accountability).
Financial Advisor in Ottawa: Your Guide to Smart Investments
How much will I pay in all-in fees? This is an essential question to ask because it allows you to evaluate if an advisor’s fee structure aligns with your interests. If an advisor works on a commission-based basis, they may be motivated to invest in riskier investments to earn larger commissions, even if the products aren’t in your best interest. But if an advisor is working as a fiduciary, they’re required to place your needs first and provide recommendations that are in your best interest.
What are your expected returns?
This is another essential question to ask because it helps you gauge if an advisor’s investment philosophy matches up with your own. Ideally, an advisor will beat historical averages for market returns, but it’s worth remembering that those return numbers are averages over the course of a full market cycle and taking the time to look at the numbers through your own risk tolerance lens.