Questions to Ask a Financial Advisor

Some Financial Advisors prefer one style of investing or certain types of investments. One way to understand their approach is to ask about their process and what success looks like to them. For example, some Financial Advisors may approach investing more conservatively, with the goal of preserving principal in a portfolio and minimizing risk. Others may look to outperform the market on an absolute or risk-adjusted basis. Having a clear understanding of your goals, risk tolerance and time horizon can help your Financial Advisor decide on the right approach for you. 

While your goals and challenges are unique to you, an experienced Financial Advisor will likely have tackled the same or very similar issues with clients many times in the past. Consider asking the advisor how they would help you set goals, develop a plan to achieve them and track your progress through all types of market conditions.

If you’re looking for help managing wealth across multiple generations of your family, ask the advisor how they navigate complex family dynamics in areas like estate planning and philanthropic giving.

You may also prefer an advisor with experience guiding clients in the same life stage as you or with similar personal or professional backgrounds. For example, some Financial Advisors specialize in helping women business owners, LGBT+ clients or even clients who are navigating a divorce. Advisors may also possess a financial certification indicating they have specialized training in certain areas, such as retirement planning, financial planning or portfolio management.

You might be doing well managing your own investments, but a Financial Advisor may be able to help you build on what you’ve achieved so far. Some Financial Advisors work for large parent companies, which allows them to access a broad array of investment products across traditional and alternative asset classes that aren’t always available on self-directed trading platforms. In addition, some firms have entire research and strategy teams dedicated to analyzing the economy, markets, sectors and individual securities to help advisors and their clients make informed investment decisions. Ask the Financial Advisors you interview what kind of tools and resources are available to them, and how they would use those tools to help you.

Many advisors see themselves as part of their clients’ support system. Ask what their client relationships are like and how they nurture them. Often, relationships begin with the advisor getting a clear understanding of your finances after you share details on your income, savings, debt, assets, investments, loans and goals. An advisor may also ask about your aspirations for your family and ways in which you want to set them up for success, including education and estate planning. A good advisor listens and takes the time to learn about you, asking detailed questions about your current financial state and long-term goals.

On the other hand, if you sense that an advisor is not genuinely interested in getting to know you or makes product recommendations before they have a complete picture of your situation, it could be a red flag.   

Having periodic check-ins on how you’re tracking toward your goals can help you feel more confident in your finances. As you’re interviewing advisors, ask how often they recommend meeting to review your financial plan. The advisor you choose should be available to meet with you at the frequency you’re comfortable with. Also, be sure to ask how readily available they are in case something unexpected happens. How quickly will they respond? Who is their back-up for when they’re out of office, and are you comfortable with that person? Press for details and examples. Before you hire an advisor, agree on these details so there are no surprises.