The most important question to ask any financial advisor is: "Are you a fiduciary 100% of the time?" A fiduciary is legally required to act in your best interest. Other critical questions cover compensation structure, investment philosophy, credentials, communication frequency, and conflicts of interest.
A fiduciary is legally required to act in your best interest. Some advisors are fiduciaries only part of the time — for advisory accounts but not brokerage accounts. You want someone who is always on your side.
Understand every way your advisor makes money. Fee-only advisors earn only from the fee you pay. Fee-based advisors may also earn commissions. Commission-only advisors earn entirely from product sales.
You want an advisor whose approach aligns with your beliefs about risk, diversification, and active vs. passive management. If they cannot clearly articulate their philosophy, that is a red flag.
CFP, CFA, CLU, ChFC, and similar designations require rigorous study and continuing education. Ask about credentials and verify them on FINRA BrokerCheck.
Your financial plan is not a one-time event. You should expect at least annual reviews, with additional meetings as life changes. Ask about their communication frequency and accessibility.
An advisor who primarily works with retirees may not be the best fit for a 35-year-old physician. Make sure your situation matches their expertise and typical client.
A comprehensive financial plan should be more than a portfolio allocation. It should cover goals, cash flow, tax planning, retirement projections, estate coordination, and insurance analysis.
Your assets should be held by an independent custodian — Schwab, Fidelity, etc. — not by the advisor. This separation protects you from fraud and ensures your assets are always accessible.
Continuity matters. Ask about succession planning, team structure, and what happens to your relationship if your advisor retires.
The best advisors will proactively disclose potential conflicts. If they say they have none, ask specifically about revenue sharing, proprietary products, and referral fees.
Ask Us These Questions
We welcome every one of these questions — and we will answer them transparently. Schedule a free consultation.
