Mark, 35, convinced his mother, 58, to meet a financial adviser for retirement planning. She plans to retire this year with her husband, both having faced cancer. They will take CPP at 62 and OAS at 65, with modest savings and a home nearly paid off. Here are crucial questions to ask an adviser.
Why Ask These Questions?
In Canada, anyone can call themselves a financial adviser. Credentials like Certified Financial Planner (CFP) ensure formal training and ethics. Asking the right questions helps evaluate competence and avoid conflicts of interest.
Questions About Credentials and Background
- What professional certifications do you have, and what do they mean?
- Are you registered with provincial or national regulators?
- Have you or your firm ever faced disciplinary actions?
Questions About Services
Good advisers offer more than investment advice: retirement income planning, tax strategy, estate planning, and budgeting. Ask:
- What services are included in your planning?
- How do you build a retirement income strategy?
- Do you coordinate with tax experts or lawyers?
Questions About Fees and Payment
Understand how the adviser is paid to avoid hidden costs. Fee-only advisers charge directly; commission-based may have conflicts. Ask:
- How are you compensated? Fee-only, commission, or a mix?
- What is the total cost for planning and ongoing monitoring?
- Are there any hidden fees in investment products?
- Is any portion of fees tax deductible?
These questions empower Mark and his parents to make informed decisions, ensuring a secure retirement.
