10 Questions to Ask Any Financial Advisor (Talley Financial Q&A)
By: David Talley, CFP®
When considering a financial advisor, it's crucial to ask the right questions to ensure they align with your financial goals and needs. At Talley Financial, we believe in transparency and clarity in our client relationships. Below are ten essential questions you should ask any financial advisor, along with the answers provided by our lead advisor David Talley.
1. What are your qualifications?
Understanding the qualifications of your financial advisor is the first step in establishing trust. At Talley Financial, David Talley is a Certified Financial Planner , Chartered Financial Consultant , and an IRS Enrolled Agent . With 11 years of experience as a client-facing financial advisor and holding Series 7 and 66 investment licenses , you can be assured of our expertise.
2. How will our relationship work? How often will we meet?
The frequency of meetings can vary based on your needs. For ongoing relationships, we require meeting at least once per year to fulfill our fiduciary duty. However, we often communicate with clients multiple times throughout the year, ranging from monthly to yearly depending on your specific situation.
3. What financial areas can you help me with?
Our primary services include proactive tax planning , discretionary investment management , and comprehensive financial planning . This covers a wide range of financial areas, including retirement income planning , insurance advice , estate planning , cash flow planning , and debt management .
4. What tax planning services do you provide?
As an Enrolled Agent , David can represent any U.S. taxpayer for various tax issues with the IRS. We focus on common tax planning areas such as maximizing deductions , managing income and gains timing , and coordinating strategies between income, small business, and real estate tax returns.
5. Do you have a minimum investment requirement for client accounts?
We don’t have investment minimums, but our minimum fee for household of $2,000 can sometimes enforce a minimum investment amount per household if no other services are selected. For example, a 1% fee on a $250,000 account would result in a fee of $2,500 . However keep in mind, many of our clients do not require investment management and seek assistance solely in areas like tax or retirement planning on a flat fee basis.
6. What is your process for keeping my data secure and confidential?
Data security is paramount at Talley Financial. We use encryption for all potentially identifying information, operate with secure servers , and undergo regular security audits . Our standards align with major bank and government security regulations, though we acknowledge that complete data protection cannot be guaranteed.
7. Who do you serve?
Our clientele primarily consists of entrepreneurs , individuals approaching retirement , and young high-income earners . We tailor our services to meet the unique needs of each of these groups.
8. What is your investment philosophy?
David emphasizes two key principles in our investment philosophy:
1. Owning income-producing assets is the most reliable way to outpace inflation and build real wealth. Most notably these include small businesses, real estate, and equities.
2. David aims to help clients take the right amount of risk as an investment advisor. We strive to avoid exposing clients to more volatility than suits their personality and financial goals, while at the same time keeping them from taking too little simply due to a lack of precision.
9. Are you a fiduciary all the time?
David, as a CFP Professional , is required to always act as a fiduciary any time he provides financial advice. Many “fiduciary” advisors have obligations that vary by account; hence, it’s essential to ask specific questions to understand their commitments.
10. What is your fee structure?
At Talley Financial, each of our services have standalone pricing in line with industry standards.
Financial planning fees are always a flat fee based on the complexity of, and which, specific services requested.
Investment management fees come through an advisory fee , or “wrap” fee that starts at 1% on the first $1m and decreases up to an eventual 0.25% above $5m.
Tax strategy and planning fees are always “value based.” Although ideally we’d provide a much larger multiple, for any new client relationship we would identify tax strategies with a tax savings value of at least 3x our fee - or else we wouldn’t engage in working together.
Our minimum household fee for any or all services start at $2,000 and can be for either one time services or on an ongoing basis.
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By asking these questions, you can better understand the financial advisor's capabilities and how they align with your financial objectives. At Talley Financial, we are committed to transparency and effective communication, ensuring that you feel confident in your financial future. If you have more questions or are ready to get started, feel free to reach out!
https://www.mytalleyfinancial.com/schedule/free/introductory/call/talley/financial
