Picking a financial advisor isn’t just about finding someone with a fancy title. It’s about making sure your money—and your future—are in good hands. Here are some key questions to ask (and why they matter), with tips on what to look for in the answers.
- How Do You Get Paid—And What Other Fees Should I Expect?
Let’s talk money, right up front. Don’t be shy!
– How are you compensated? (Is it a flat fee, hourly, a percentage of assets, or by commission?)
– Are there extra fees? (Think: trading fees, account maintenance, or hidden charges.)
– Do you earn commissions for selling me stuff? (And if so, what kind?)
– Can I see a fee schedule? (You should get a clear, written breakdown.)
For reference, review details on the OakView Financial website.
Why ask?
You want no surprises! Make sure their advice isn’t being swayed by commissions or incentives. And, you should always know exactly what you’re paying for.
- What Services Do You Offer—And Do You Have a Specialty?
Not all advisors do the same things.
– What’s on your menu? (Retirement planning, investing, taxes, estate planning, or just managing your portfolio?)
– Do you specialize in anything? (Maybe you want someone who’s great with small business owners, or who focuses on retirement.)
– How will you work with me? (What’s the process? How often will we meet or talk?)
Tip:
Look for someone whose services match your needs—not just someone with a slick presentation.
- What Credentials Do You Have—And Why Do They Matter?
Credentials aren’t just letters after a name; they actually mean something.
– What designations do you have? (CFP, CFA, CPA, etc.)
– How do those help me? (Ask for real-life examples, not just buzzwords.)
– How do you keep them up-to-date? (Ongoing education matters.)
– Can I verify them? (They should be cool with you checking.)
Red flag:
If an advisor gets weird about sharing or explaining their credentials, that’s a no-go.
- How Do You Build and Implement a Financial Plan?
No cookie-cutter plans, please!
– What’s your process? (Goal setting, risk assessment, etc.)
– Do I get a written plan? (You should!)
– How will you tailor it to me? (Ask for specifics, not generalities.)
– How do you deal with conflicts of interest? (Full transparency is key.)
- How Will You Track My Progress?
Don’t just set and forget—your advisor should be monitoring things!
– What metrics do you track? (Investment returns, savings rate, fees, etc.)
– How often do we review progress? (Quarterly? Annually?)
– What happens if I fall behind? (You want a clear plan for course-correction.)
Bottom line:
You need regular check-ins and clear benchmarks, so you know you’re on track.
- How Do You Handle Conflicts of Interest?
Honesty check! Everybody has conflicts sometimes—the key is how they handle them.
– Will you tell me if you have a conflict? (They should, in writing.)
– Do you get paid more for recommending certain products?
– Is your compensation tied to what I buy?
– How transparent are you about fees and performance? (Regular, easy-to-understand reports are a must.)
- What’s Your Communication Style—and How Often Will We Review My Plan?
You deserve to know how and when you’ll hear from your advisor.
– How do you communicate? (Phone, email, video, in-person?)
– How quickly do you respond?
– How often will we meet or check in?
– Will you explain things in plain English? (No jargon, please!)
Remember:
If you don’t feel comfortable asking questions, keep looking. You want someone who keeps you in the loop and makes things easy to understand.
Bottom Line
Hiring a financial advisor is a big deal. Don’t be afraid to ask the tough questions—and expect clear, honest answers. The right advisor will welcome your questions and help you feel confident about your financial future. And if they don’t? Well, there are plenty of fish in the sea. Happy hunting!
