Essential Questions to Ask a New Financial Advisor

So, you’ve decided it’s time for a change and you’re ready to find a new financial advisor — one who takes a holistic approach to planning. But with so many options, how do you choose the right one?

Asking the right questions is key. Here are some essential topics to cover during your initial consultations to ensure you’re partnering with an advisor who provides comprehensive guidance:

1. Client Focus

  • Who is your typical client? Do they specialize in working with certain professions, income levels, or age groups? Understanding their niche can help you assess if they’re a good fit for you.
  • How do you communicate with clients? Will you have regular meetings, phone calls, or email updates? Establish clear expectations for communication.
  • What is your fee structure? Are they fee-only, fee-based, or commission-based? Understand how they get paid and what services are included.

2. Experience

  • How long have you been working in the financial industry? Experience matters, but consider whether the advisor has experience working with clients in similar situations to yours.
  • What is your investment philosophy? Do they lean toward active management, passive investing, or a blend of both? Make sure their approach aligns with your risk tolerance and financial goals.
  • What are your qualifications and designations? Look for advisors with credentials such as Certified Financial Planner (CFP), Chartered Financial Analyst (CFA), or other relevant certifications.

3. Planning Approach

  • Do you offer comprehensive financial planning? Beyond investment management, do they address areas like retirement planning, tax planning, estate planning, and insurance needs?
  • What is your process for developing a financial plan? How do they gather information, analyze your situation, and create a customized strategy?
  • Will you help me implement the plan or just provide advice? Some advisors offer ongoing support and guidance, while others may be more hands-off. 

4. The What Ifs

  • What is your succession plan? It is essential to know what will happen to your account if the advisor retires or leaves the firm.
  • How do you handle client concerns or complaints? A reputable advisor will have a clear process for addressing any issues that may arise.
  • Can you provide references from current clients? Speaking with other clients can give you valuable insights into their experience with the advisor.

Finding the Right Fit

Choosing a financial advisor is a significant decision. Don’t be afraid to ask these questions and take your time to find the right fit for you. A strong advisor-client relationship is built on trust, transparency, and open communication.

We welcome the chance to answer these questions (and more). Contact us today for a no-obligation consultation. If you didn’t catch part one of this series, check it out: 5 Signs You Might Need a New Financial Advisor.