If you decide to delegate some or all of your financial plan to someone else, finding the right financial advisor is one of the most important financial decisions you’ll ever make. Yet many people walk into advisor meetings without a plan, unsure of what to ask or how to evaluate what they hear. That’s where things can go wrong. The financial industry is filled with jargon, varying fee structures, and advisors who may or may not have your best interest at heart.

By preparing a thoughtful list of questions in advance, you take control of the conversation. You move from being a passive listener to an informed decision-maker. You can compare advisors on more than just personality — you can evaluate their transparency, ethics, investment philosophy, and whether their advice truly aligns with your goals.

Below, you'll find 20 essential questions to ask any financial advisor — each designed to uncover how they work, how they’re compensated, how they treat clients, and whether they practice what they preach. Whether you’re just starting your financial journey or looking to upgrade your current advisor, these questions will help you make a choice with confidence — and clarity.

Consider getting these in writing, or at least a confirmation of understanding in writing about these, so there is no confusion about expectations between you and your advisor.

About the Advisor

1. What are your qualifications and certifications? Certifications like CFP®, CFA®, or CPA show a high level of education and ethical commitment.
2. Are you a fiduciary 100% of the time? A fiduciary is legally bound to act in your best interest — you want that commitment all the time, not just part of the time. Only about 10-15% of financial advisors are truly fee-only fiduciaries 100% of the time. Others are dually registered, acting as fiduciaries in certain roles (such as planning) and as brokers (commission-based product sales) in others, while broker-dealer representatives are generally held only to a “suitability” standard (think lower standard for recommending “suitable” products, which may or may not be the best solution for you).
3. How are you compensated? Know what you're really paying for – see the blog on this website from May 13, 2025 for more information: Understanding Financial Advisor Fees: What You Need to Know Before You Entrust Your Wealth.
4. Who is your standard client profile, and do you have experience working with clients like me? Look for someone familiar with your financial profile and life stage that has other clients in a similar position to get relevant, personalized advice.
5. Do you have any disciplinary history or client complaints? You’re trusting this person with your future — check their record for red flags. You can and should also run independent checks through FINRA (https://brokercheck.finra.org/) and/or the SEC (https://adviserinfo.sec.gov) to double check.

Financial Planning and Investment Approach

1. What is your investment philosophy? Understanding how they manage risk and make decisions will show if their approach aligns with your values (index vs. active investing, tax mitigation strategies, etc.). Ask about benchmarking, and if it is consistent with the risk and allocation of the philosophy itself (i.e., the S&P 500 benchmark may not be a good benchmark vs. a portfolio of higher risk investments)
2. How will you create a financial plan tailored to my goals? Avoid one-size-fits-all strategies. A good plan should be uniquely yours, based on your life needs and of course your risk-taking ability, need to take risk to achieve your life goals and overall comfort with risk-taking.
3. What services do you provide beyond investment management? Look for advisors that take a holistic approach to financial advice, covering retirement, tax, estate, social security analyses, and risk management — not just investments.
4. Do you have these other services in-house, and do you charge extra for these services?
5. How often will we review and update my financial plan? A strong plan evolves with your life, and should be reviewed and potentially updated periodically as life circumstances change.
6. What happens to my account if something happens to you? Continuity matters. Make sure your advisor has a succession or backup plan in place, and that you are comfortable with that plan.

Costs and Transparency

1. Can you provide a detailed breakdown of all fees I will pay? You deserve to know every fee — advisory, fund, transaction, and custodian — to avoid surprises.
2. Do you receive any third-party compensation for recommending products? Outside commissions may influence what they suggest. Ask directly about conflicts of interest.
3. Is my account a third-party custodial account, and am I the only one with withdrawal rights? This protects your assets from unauthorized access — your money should be held in your name at a trusted custodian. It should be with a well-known custodian (think Charles Schwab, Fidelity, etc.).
4. What happens if I decide to terminate the relationship? You need clarity on how to exit and that the process is laid out in the paperwork that you are signing: Are there termination fees? Is the process smooth? Can you easily transfer your assets elsewhere?

Client Relationship

1. Who will I be working with on a regular basis? You should know if you’ll deal directly with your advisor or be handed off to someone else, and if someone else, who that person or team is.
2. How will we communicate, and how often? Set expectations for contact frequency and preferred communication channels.
3. Can I see a sample financial plan and references from other clients? A sample plan shows their thoroughness. Client references offer real-world feedback.

Accountability and Alignment

1. Why did your last two clients leave you? It might be an awkward question to ask, but a good financial advisor will be open and transparent in answering that question.
2. What do you personally invest in, and are you willing to share a statement of your investments? Advisors who follow their own advice demonstrate belief in their strategy — and give you confidence in their recommendations.