David Brooks Urges 2 Questions to Screen Advisors and Avoid High-Commission Products
Updated
Updated · 24/7 Wall St. · May 19
David Brooks Urges 2 Questions to Screen Advisors and Avoid High-Commission Products
1 articles · Updated · 24/7 Wall St. · May 19
Two questions can expose whether a financial advisor is selling products or offering real planning, David Brooks said: ask what they do differently and how they get paid.
A clear answer on specialization signals a defined process or client niche, while vague claims about serving everyone can indicate a generic sales pitch rather than expertise.
Compensation should be disclosed in the first meeting, Brooks said, whether the model is fee-based, commission-based or hybrid; if the answer is unclear, treat that as a warning sign.
Brooks said advisors who instantly agree with everything are often selling, not advising, and argued that mild pushback can be a better sign of authenticity.
Before booking, investors should verify CFP or CFA credentials, check FINRA BrokerCheck and the SEC's IAPD database, and read Form ADV Part 2 for fees, conflicts and disciplinary history.
As AI and 'finfluencers' create new risks, are old advisor vetting methods enough to protect your wealth?
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