I've seen a lot of articles that say to question the securities recs from your broker. Also strange to see that things like separately managed accounts http://www.filife.com/stories/sma-assets-are-hit-hard-by-downturn were even popular. I've been solicited by a broker once and that broker worked in mutual funds anyway.

If you have used a broker, has their tack changed recently? What motivates you to buy individual stocks/assets anyway?

Nothing motivates me to buy a single stock of anything.

If I have been solicited by a broker or have them show me their business model, every single one of them pushed and sold what the fund companies, insurance companies, or SMA's told them to push or sell. Decisions were then made not on quality, but on the fees and commissions back to the adviser.

I would say to question every single recommendation a broker gives you. It's your money. You have to ask yourself why he is persuading you to buy this particular stock or go into this particular SMA. He isn't working for free.

Brokers are supposed to look out for your best interests which means recommending investments that are suitable for your particular circumstances. Unfortunately, their pay structure is such that it may not always be profitable to them to suggest often lower-cost (read: you keep more of the return) investments because like anyone else, they are in it to make money.

But here are five questions that cover most critical areas:

1. What investment training have you had?
You’d be shocked how many financial advisers know little to nothing about investment management. Most of them are salesmen trying to sell you financial products. Even so-called licensed brokers may not be as qualified as you think. It only takes passing a few easy licensing exams to become a broker. You want to be sure you’re getting the best and brightest handling your finances.

2. Have you or your firm ever gotten into trouble?
Government regulators audit brokerages on a regular basis … and they cite firms that don’t play by the rules. This includes anything from mismanagement to outright fraud. Again … odds are, they’re not going to start divulging all their unethical behavior. But there is a way for you to find it out!

Go to FINRA's BrokerCheck … they are the regulator … and lists all the firms and individual brokers that have gotten into trouble.

3. Do you get extra commissions for selling certain products?
Some financial advisers get paid differently on similar products and account types. So the question is: are these investments necessarily right for you? It’s a clear conflict of interest if a financial adviser is putting his paycheck ahead your best interest as a client and investor. And believe it or not, if it’s disclosed in the fine print … this is perfectly legal. Ask your broker how much he’s getting paid for recommending one investment over another. Legally they are required to disclose kickbacks. But odds are they won’t tell you … so read your fine print … and ask him why this is the best investment for you. You’re paying him only for his advice after all.

4. Why is this the best investment for you?
Here you’re testing the financial adviser’s ability to fully understand your needs and constraints in order to recommend appropriate products and services. This is called suitability. When your adviser recommends that you buy or sell a particular security, he must have a reasonable basis for believing that the recommendation is suitable for you. In making this assessment, your broker must consider your risk tolerance, other security holdings, financial situation (income and net worth), financial needs, and investment objectives.

5. Where is my money custodied or held?
Legitimate money managers and investment advisers never want to actually handle your money. They simply want to have the authority to trade your accounts. To protect themselves and their investors, they use banks, mutual funds, or brokerage firms as independent custodians. Anyone with a computer can print an account statement, so make sure your custodian is a well-known and respected firm. Many advisers commonly use third-party firms such as Schwab, Fidelity, or TD Ameritrade.

These are obvious questions and by asking them, you can feel confident that you’ve done your homework on the financial advisor you choose.