Additional questions to ask financial advisor:
1. What is the highest yield offered on money market-like instruments? (needs to beat CPI after tax)
2. What is the (lowest discounted) fee for equity and income assets for a $1M portfolio?
3. What are your views on MPT?
4. How many accounts are you currently managing?
5. What do you have to offer vs XXX financial institution, or vs XXX group within your institution (some of these institutions are so huge they have multiple groups competing for your assets)?
6. What contacts do you have for tax accountants and lawyers?
Signs that your financial advisor is doing right by you:
1. Recommended a 50-50 split between equity and fixed income for my asset level. Means lower commissions for him.
2. No hedge funds recommended for a $1M portfolio.
3. Showed me his own personal account statements, he was trying to demonstrate that he follows the same strategies himself for all of his assets (he has a decent chunk of change for his age).
4. Pretty straighforward about fees, showed me the entire proprietary fee schedule, including discounts. Broke down how fees are paid to money managers, wirehouse, and broker.
5. Sent me some free research reports and reading materials which I learned from.