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1.
To determine how profitable a company is, examine its _______.
Return on assets. Return on assets, or ROA, is a key measure of how well a company uses investors' money.
2.
What kind of organizations would you consult to find out whether a prospective financial advisor has ever been subjected to disciplinary action?
Regulatory organizations. Regulatory organizations--whether professional or governmental--can tell you whether your candidate has ever been disciplined.
3.
What should we do when we go through a new life stage?
Re-evaluate our financial plans. Our financial plans may or may not need to change. But one thing we must do is re-evaluate those plans--otherwise, we won't know whether they need to change at all.
4.
What is included in an ADV form?
The advisor's resume. The ADV form includes advisors' educational backgrounds and professional designations. It also discusses how the advisor is compensated, and whether he or she has ties to particular insurance or mutual fund companies.
5.
After a major life event, you should _______.
Re-evaluate your investment goals and risk tolerance. Not every life event has to trigger changes for every investor's portfolio. But we should all re-evaluate our financial plans as we pass through a life stage.
