Hiring a Financial Advisor

Hiring a financial planner is a substantial decision. It’s important to make this decision with thoughtfulness and intentionality. We recommend selecting an advisor that is fee-only, independent, and a fiduciary. Below is a recommendation for other good questions to ask yourself as you select an advisor.

Questions to ask yourself

Does this financial advisor work with clients like me?

Many financial advisors have specific types of clients that they regularly work with. Comprehensive financial planners work across a wide range of subject areas including: investing, retirement planning, taxes, insurance, estate planning, cash flow management, employee benefits, and many more. Many financial planners seek to serve specific groups of clients in order to provide the best possible advice because of their familiarity with the needs of those clients.

Here are some ways financial advisors define the types of clients that they work with:

• By life stage (such as those approaching retirement within the next few years or those who are just starting their careers)

• By profession (such as working with physicians or military personnel)

• By investment/financial values (such as socially responsible investing or fossil-free investments)

• By geographic area (some clients prefer to meet face to face with someone who knows their local area)

• By specific events that clients may want financial advice about (such as going through a divorce or starting a business)

• By net worth or income (wealthier clients have different concerns around issues of estate planning or taxation than clients of modest means)

Are they qualified to give me financial advice?

It’s important that your financial planner has the technical expertise to provide you with competent and professional advice. A few ways to measure their level of expertise is to consider their education, professional designations, and their level of experience.

You may also want to review the advisor’s FINRA Broker Check profile to ensure they are properly registered and don’t have derogatory marks in their history.

What are important questions to ask a potential advisor?

Here are some questions that we recommend you ask every advisor that you interview:

• What are your fees? How are they paid? Do you receive commissions or are you fee-only?

• Are you a fiduciary?

• Can you provide me with any professional references?

• How long have you been practicing?

• What does your process look like?

• What is your investment philosophy?

• Do you prefer working in person or remotely?

• Do you have an account minimum for investment clients?

• What sets you apart as an advisor?

Do they have a well defined financial planning process?

A great financial planner should have a clearly defined process that utilizes modern technology. They should be able to explain the details of their process when you ask them about it. How often will we meet? How much is required by me and also for the planner to work on the financial plan? What will I receive as a part of the process?

Can I afford them? Do they provide value above their costs?

It’s important to understand an advisor’s fees. Can you afford those fees? While this is a substantial question, a good thing to consider is if that advisor can provide value to you above their cost. Try to understand the cost of hiring a financial planner in the context of the value they provide for you.

Do I feel there’s a good fit? Do I feel optimistic working with them?

A financial planner typically knows intimate details about many of the important parts of your life. Do you have shared beliefs and values with your planner? Do you enjoy your interactions? Do you look forward to meeting with your planner? A prosperous relationship, and partnership, is two-fold and is built on commitment, trust, vulnerability, and transparency.