5 Essential Questions to Ask a Financial Advisor You Must Know


Whether you recently acquired a large inheritance, want to invest your current funds, are looking into a retirement plan or want to properly manage your debt, a financial advisor can be of great assistance. 

But it’s important to find an advisor who’s in the field to provide you with the best advice as opposed to making a commission on selling you products. 

With over 270,000 financial advisors in the field, how are you supposed to find the one who is right for you and your financial needs? 

These questions to ask a financial advisor will help you start the process of finding an advisor who can help you with all your monetary needs.

1. Are You A Fiduciary?

This is the first question you should ask your financial advisor because you want to ensure that they’re going to work in your best interest. A fiduciary is a person who will place your interest before their own. They’re also required to disclose potential conflicts of interest, how they are compensated and fees they charge.

If your financial advisor isn’t a fiduciary, they might recommend products and services that are applicable to your situation but might not be the most affordable or reasonable. 

2. What Qualifications And Licenses Do You Have?

A financial advisor’s list of qualifications and licenses can be rather lengthy and confusing. But, instead of assuming that their long list of credentials makes them the best fit for your financial situation, it’s important to ask them about their specific qualifications and licenses. 

This is because some firms only require their financial advisors to pay a fee and take minimal courses. However, you want to find an advisor who has the proper qualifications. Look for an advisor who is a certified financial planner (CFP), a certified public accountant (CPA) or a chartered financial analyst (CFA).

3. How Do You Charge For Your Services?

This is a fancy way of asking your financial advisor how you’re going to pay them. This will allow you to know exactly what your money is going toward and can eliminate any surprise fees along the way to your financial success.

It’s important to know planning fees, a percentage of assets and hourly rates. And, to stay on the safe side, stay away from advisors who work on a commission basis.

This will also give you insight on if they are making money by selling you products, which can be a warning sign. 

4. Can You Tell Me About Your Investment Philosophy?

Working with a financial advisor who has the same investment philosophy as you do can eliminate any hiccups down the road. Make sure they have both short-term and long-term goals that will allow you to invest money despite what the market looks like. 

5. Who Is Your Ideal Client? 

It’s important to make sure that your financial advisor is a perfect fit for you and your situation. Because money is an expansive topic, and an advisor who is ideal for someone else might not be ideal for you. 

Some advisors require their clients to hold a specific net worth before they work with them, some advisors specialize in certain assets, and some advisors specialize in specific milestones such as divorce or retirement.

So, an advisor you’re talking to is great on paper. But if they aren’t experienced with your financial needs, they more than likely aren’t the best fit for you. 

Questions To Ask A Financial Advisor

Your money and your financial planning are of the utmost importance. And, at the end of the day, you don’t want just anyone helping you make important financial decisions. But these five questions to ask a financial advisor will help you find your perfect financial match. 

Did you enjoy this article? If so, take a look at our lifestyle articles for more expert tips and trick. 


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