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1.
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.
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.
To determine how quickly a company is growing, examine its _______.
Sales growth. Compare a company's sales growth with those of other companies in the same sector. Examine whether sales growth is speeding up or slowing down, as well as how consistent growth has been.
4.
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.
5.
Every life event triggers changes for an investor's portfolio.
False. Any given life event may or may not trigger such a change, though most do.
