Welcome back to the Financial Advisor series! Over the past few posts, we’ve walked through the whole landscape:
Part 1 – What Is a Financial Advisor? We explored when an advisor actually
Part 2 – Financial Advisor vs. Financial Planner vs. CPA vs. Coach – We broke down the different types of advisors, planners, and coaches, what they do, and how to know if they’re the right fit.\
Part 3 – Do I Really Need a Financial Advisor?We dove into identifying where an advisor is worth it and when you might be better off taking a DIY or planner first approach.
Part 4 – What to Look for in a Financial Advisor or Planner We went deep into traits, services, and how to identify someone who will actually make an impact across your financial life.
Now we’ve made it to Part 5: the questions you should be asking before you hire anyone. Think of this as your professional code for confidently choosing a trusted advisor who aligns with your goals, values, and life.
What I Learned from Years of Client Meetings
I started my career in 2009 and since then, I’ve worked with hundreds of prospective clients. One thing became clear: many people don’t fully understand what a financial advisor does, which makes it hard to know what to ask.
I remember clients walking in feeling overwhelmed. It’s not just about numbers, it’s their money, their personal goals, and sometimes a little fear about letting someone else handle it or simply, included in the information. But once we talked through the details and answered these five questions, the stress and discomfort visibly melted away. They walked out feeling empowered, informed, and confident in the direction they were headed.
The Top 5 Questions To Ask Before Hiring Someone for Financial Guidance
1. What will the experience be like if I hire you and/or your team?
Start with the basics: who will you actually be working with? Will it just be the advisor, or is there a team behind them?
Ask about communication, how often will you meet or hear updates? Will they proactively check in, or only reach out when your portfolio changes? Knowing the experience upfront sets the stage for a solid working relationship where you can manage your expectations.
2. What Services Do You Provide?
What services can you expect to receive going forward. Right now you may only need an advisor for investment management or just planning, but it will be helpful to understand the depth of services they CAN provide, if any, and how that may be beneficial for you going forward. A few examples would be; Cash flow planning, Wealth Transfer Planning, Investment management, Gifting Strategies or Charitable Planning.
Do they have access to and relationships with other great resources like CPAs, Lenders, Attorneys to help you as time goes on and as your needs change.
Get an understanding of their day to day and how you will ultimately benefit by working with them today and in the future.
3. How Are You Compensated?
Understand how they’re paid. Most investment advisors charge a percentage of assets under management (AUM), typically deducted monthly. This structure aligns their incentives with yours. Other planners will typically be contract or fee-based.
Be cautious of commission based advisors who earn by selling products like insurance or annuities. You want advice that isn’t tied to any sort of incentives.
Overall, you want transparency and clarity on what you’ll be paying and what services are included now and in the future.
4. How Will My Investments Be Managed?
I do not expect any individual to walk away from a meeting with a financial advisor and have the ability to recite every single detail of the proposed investment allocation.
But what I do want you to walk away with is an understanding of the following:
- Is it liquid? Do you have access to the investments or is there any type of lock up period.
- How the advisor will make changes to the portfolio going forward. Will they need to contact you every time or will they be making changes as they see fit based on the long term strategy?
- How they make investment decisions. I want you to feel comfortable with how they talk about the stock market, the world, investing and what their overall investment philosophy is.
5. What Safeguards Are in Place for My Assets?
Security, now more than ever, matters! Ask about:
- Where your assets are held
- What types of virtual and physical safeguards are in place to protect you
- Secure ways to share sensitive documents or statements
You want to make sure your personal information and asset security is a priority.
Bottom Line:
Not every individual or family needs a financial advisor, but when you do, finding the right one is everything. The goal isn’t just someone who can manage your investments, it’s someone who can see the big picture of your financial life, act as a strategic partner, and help you make smart decisions that actually move you toward your goals.
These five questions are designed to help you cut through the noise, feel confident in your choice, and ensure your advisor, or planner, is truly working in your best interest.
The right advisor will simplify your life, save you stress, and give you clarity on your financial future. Win win!
Next Steps
If you’re still wondering where to start:
- Review the full Financial Advisor Series to make sure you understand your needs, the types of advisors out there, and the traits to look for:
- Schedule a 1:1 with me if you want a personalized roadmap to figure out how a planner, like myself, could support your financial life today and tomorrow.
Remember: Hiring someone isn’t just about convenience, it’s about peace of mind, clarity, and building the financial life (and overall life) you actually want. Done right, the right advisor is absolutely worth it.
