SAFE Survey

Note: Required fields are marked with an asterisk (*)

Mouse over any question for an explanation of its importance.

1. Have you done a background check on your broker or financial advisor? *
   
   Yes No
   Checking the background of your broker or financial advisor is easy to do and can produce important insight into that person's history and business practices. Two easy places to check are the Financial Industry Regulatory Authority (www.FINRA.org) and the California Department of Insurance (www.insurance.ca.gov/). Both websites can give you immediate information. If you find any derogatory entries, don't be too alarmed. It is difficult to keep everyone happy over the span of a career. You should, however, request a written explanation of any negative entries from your broker.
2. Does your broker or financial advisor have any professional credentials? *
   
   Yes No
   The attainment of professional credentials is an indication of a commitment to professional growth. Be cautious about the value of credentials you are unfamiliar with. Some credentials are much more difficult to obtain than others. For a good explanation of typical credentials, visit the Financial Industry Regulatory Authority's website. http://apps.finra.org/DataDirectory/1/prodesignations.aspx
3. Do you understand how your broker / advisor is compensated? *
   
   Yes No
   Compensation structure in the financial services industry is one of the main sources of industry criticism. Each compensation structure, whether it is commissions, fee-based, fee-only or fee-offset, creates its own set of conflicts of interest that can harm you, the client. It is important to identify where that conflict of interest lies and if the broker or financial advisor acknowledges and addresses it.
4. Does your broker or financial advisors disclose to you the amount of compensation they receive for each financial transaction? *
   
   Yes No
   It is extremely uncommon for a client to ask a broker or financial advisor to disclose the actual compensation amount for a transaction. In our experience, unless you ask, it is unlikely compensation details will be disclosed to you. But it is important for you to know how your advisor is being paid and how much. Higher-commission and higher-fee products may not create the best value for you.
5. Do you have a written agreement with your broker or financial advisor? *
   
   Yes No
   A written agreement or contract is an important tool that helps you understand the limitations, scope and responsibilities of the professional relationship.
6. Has your broker or financial advisor provided you with a written investment policy statement? *
   
   Yes No
   An investment policy statement (IPS) is a document that defines the goals, time horizons, risks, allocation limits and other important guidelines for how your money is to be invested. Without an IPS it can be difficult to determine if the assets are being properly managed.
7. Has your broker or financial advisor acknowledged fiduciary status with you in writing? *
   
   Yes No
   A fiduciary is a person or entity who has been placed in a high standard of trust. An investment fiduciary has the legal responsibility and liability to place your interests first ahead of their own. Many investment professionals try to avoid fiduciary status because of the higher standard that must be followed.
8. Has your broker or financial advisor explained the fees and expenses in your services and investments? *
   
   Yes No
   It is important to understand what the fees are in your investments and how they might affect the long-term performance. Some fees and expenses show up on your statements and some are nearly invisible. You must be aware of all fees if you want to determine the value of the services you receive.
9. Do you believe that your broker or financial advisor has taken the time to fully understand you and your financial situation prior to making financial recommendations? *
   
   Yes No
   The better your broker or advisor understands you and your unique situation, the better equipped that person will be to arrive at the best strategy and solution for you. One way to assure that your advisor understands your complete picture is to complete a financial plan prior to making any recommendation to invest money.
10. Do you feel confident that your broker or advisor acts in YOUR best interest? *
    
    Yes No
    Intuition is powerful. If you have doubts about the motivations of your broker or advisor, you should take the time to discover the source of your doubt. Simply send your current broker or advisor our SAFE questionnaire and ask for a response in writing. You may find the experience quite educational.