Important questions to ask a financial professional

Now that the Trump administration has declared its intention to delay and potentially roll-back the Department of Labor’s fiduciary rule, which would force financial professionals (and their firms) overseeing the nearly $3 trillion in retirement savings to work in their clients’ best interest, it may be a good time to review your relationship with your current adviser, stock broker or insurance salesperson. Here is an updated list of questions to ask the person advising you on your investments:

• Are you held to the fiduciary standard? Investment professionals who aren’t fiduciaries are held to a lesser standard, called “suitability,” which means that anything they sell you has to be appropriate for you, although not necessarily in your best interest.

• How will I pay for your services? The adviser should clearly state in writing how she will be paid for the services provided. The three basic methods are: fees based on an hourly or flat rate; fees based on a percentage of your portfolio value, often called “assets under management” (AUM); and commissions paid per transaction. How often you expect to trade, and whether you want your money pro-actively managed, will help determine which model works best for you.

• What experience do you have? Find out how long the adviser has been in practice and where. Also ask if she has any professional certifications, licenses or designations. Some certifications include: certified financial planner (CFP); CPA personal financial specialist; chartered financial analyst (CFA). These certifications are governed by national standards-setting organizations and require adherence to the fiduciary standard. Members of the National Association of Personal Financial Advisors, an organization of fee-only financial planning professionals, also adhere to the standard.

• What services do you offer? Services offered can depend on a number of factors including credentials, licenses and areas of expertise. Some conduct financial planning alone and do not sell financial products. Others may only manage assets.

• What is your approach to financial planning and