Questions to Ask a Financial Advisor (Before You Sign Anything)

Kimberly Green | 2025-05-07

29 % of U.S. investors with more than $1 million in investable assets say they’re thinking about switching firms in the next 12 months—mainly because of poor communication and unclear fees ( J.D. Power 2024 U.S. Full‑Service Investor Satisfaction Study ). Walk into your first—or next—meeting armed with these ten questions, and you’ll know within 15 minutes whether the advisor across the desk deserves your business. 1. How do you get paid—exactly? An advisor should spell out every revenue stream in writing: flat planning fee, AUM tier schedule, hourly consult rate, and any product commissions. Ask to see a sample invoice. If they can’t quote dollars and percentages in 30 seconds, keep shopping. 2. Are you a fiduciary 100 % of the time? Fiduciaries must put your interests first in every recommendation. Brokers operating under “suitability” can sell higher‑commission products so long as they’re “not inappropriate.” Anything less than a clear “Yes—always” is a deal‑breaker. Verify later on FINRA BrokerCheck or the SEC IAPD . 3. Who is your ideal client? You want to be right in their sweet spot. If they mostly serve retirees living off bond ladders and you’re a founder juggling QSBS and stock options, you’ll be an experiment, not a specialty. 4. What licenses or certifications do you hold, and why? The gold standards: CFP® for holistic planning, CFA® for deep investment work, CPA/PFS for tax‑heavy advice, Series 65 for fee‑only fiduciaries. Ongoing education shows they stay current. 5. How will you customize my plan? Templates save time, but your equity vesting schedule, entity structure, and risk tolerance should dictate recommendations. Ask for a 90‑day roadmap outlining documents, milestones, and deliverables. 6. How often will we meet, and how will you communicate between meetings? Quarterly reviews used to cut it; hyper‑growth founders often need monthly Zooms and a secure messaging portal for quick questions. Nail down cadence now to avoid ghosting later. 7. What’s your investment philosophy when markets get ugly? Everyone talks upside; the real test is during drawdowns. Ask for a concrete example of a tactical move they made in 2022’s bear market—and how it affected client outcomes. 8. How do you coordinate with my accountant or CFO? Tax alpha is real: location of investments, entity choice, and timing of income can add more value than a marginally better mutual‑fund lineup. Advisors should happily hop on joint calls with...