Questions to Ask a Financial Advisor

Questions to Ask a Financial Advisor

Questions to Ask a Financial Advisor

If you are planning on meeting with a financial advisor for the first time, it’s important to have information and knowledge about who they are and their philosophies. You should feel comfortable with your advisor. That’s why we pulled together this list of questions to ask a financial advisor.


Are you willing to share your financial information with this person?
Financial advisors often need to know everything about your financial situation to help you reach your personal goals. This means that you may have to provide certain documentation that seems odd or uncomfortable, such as information on the amount of debt that you currently have. Advisors are not meant to judge you, but they do need to know if they have any roadblocks that could potentially hinder their recommended plans for you, or assets that could affect the outcome of a strategy. Financial advisors should all have privacy policies and secure systems in place to hold all documentation. If they do not provide you with type of privacy policy, it’s important to ask them about it.

Are you willing to pay for advice?

The heart of this question is to compare the other consumer transactions in which you engage. Consider how you pay professionals such as an attorney, or even medical doctors. Do you pay for their expertise? Likewise, an investment advisor charges for advice and creation of a financial plan.


How would you describe your typical client?
Listen closely to this answer. What you want to hear is that the advisor works with clients in similar situations to your own. Ask the advisor about account sizes; if your account is substantially smaller than that of most clients, you may not get the level of service that you expect.

Describe your investment philosophy.

It’s important to know that the advisor whom you entrust has both experience and a passion for financial planning. Pay close attention that the advisor clearly articulates their investment philosophy.

How do you get paid?

It’s essential to understand exactly how an advisor makes money and any reluctance to discuss compensation is a big red flag. Understand how you will be paying for services and how that may affect the advice you will receive.

Are there conflicts of interest that we have not discussed? What are they and how do you resolve them?

If a potential advisor is not willing to disclose their conflicts of interest or are hesitant, it could be a sign that they are going to put their own interests before yours when it comes to investing.

Who else may be working on your case?
When you meet with an advisor, you are meeting with just one individual, but if they are part of a firm, there may be other individuals who will help build your financial case. It’s important to know everyone who could potentially be involved.

GuideSpring Wealth Strategies, LLC is a registered investment advisory firm that offers financial strategies for retirement or business. We are registered in the state of Colorado and Texas. We help individuals work towards their financial goals by giving them a plan for their needs. If you would like learn more about what we can do for you, get in touch.

Check out our previous post: Researching Advisors or our next post: Financial Advisor Red Flags

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