4 Questions to Ask When you Hire a Financial Advisor

Before you hire a financial advisor, do yourself a favor and ask these four questions. I hope these tips are helpful along your journey to find the right financial advisor. If you think we might be that firm, let’s have a conversation. When it comes to your financial future, finding the right advisor is a major life decision that can impact the trajectory of your finances throughout your lifetime. Finding the right person can be challenging, but it’s not impossible. That said, here are four questions you should always ask.

1. What are your credentials? Our industry is full of fancy acronyms next to our names that mean different things. Most notably is the CFP designation, also known as Certified Financial Planner. However, there are a number of other credentials that denote areas of expertise. You’ll want to ensure you are working with an advisor whose expertise aligns with your needs. So, don’t be afraid to ask about their current credentials and follow up with ‘what does that mean?
2. How do you get paid? Transparency of fees is really important within our practice. That said, I can’t tell you how many prospective clients we meet who don’t know how their existing advisor is compensated. Advisors can get paid in a multitude of ways - so make sure you ask. After all - you want to know how much you’re paying, right?
3. Do you act in my best interest as a fiduciary? This is an important question as there are many ways one can consumer financial services, meaning there are many business models. Some business models have primarily a best interest fiduciary standard because they are broker-dealers, like the big wire-houses we’re all familiar with or they are independent Registered Investment Advisors, while other firms have more of a suitability standard because they use “selfdirected” business model, like the big discount brokers we’re all familiar with. Many firms now how a mix of both models. You do want to know who you’re working with and where the conflicts of interest lay.
4. How often will I hear from you? I spoke to someone the other day who hadn’t heard from their advisor in years. In our practice we have frequent meetings with our clients and strive to get back to clients same day. You’ll want an advisor who is proactive with communication and easy to reach when you have a question. You deserve an advisor who makes you a priority. I hope these tips are helpful along your journey to find the right financial advisor. It you think we might be that firm, let’s have a conversation.

Author Ken Haycraft

Certified Financial Planner Board of Standards Inc. owns the certification marks CFP^®, Certified Financial Planner™,   and   in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.