10 Powerful Questions to Ask Before Hiring a Financial Advisor

Key Points

• Asking the right questions helps you choose a trustworthy financial advisor who aligns with your goals.
• Focus on fiduciary duty, fees, qualifications, services, and communication to ensure a good fit.
• Transparency in an advisor’s answers builds confidence in their integrity and expertise.
• Use these questions to assess an advisor’s commitment to your financial success.

Why Asking Questions Matters

Choosing a financial advisor is a big decision that can shape your financial future. The right advisor can guide you through investments, retirement planning, or complex financial needs, but not all advisors are created equal and the wrong advisor can cause massive setbacks in your financial future. Asking targeted questions helps you uncover their qualifications, approach, and whether they prioritize your interests. This process empowers you to make an informed choice, ensuring trust and alignment with your goals.

How to Use These Questions

When meeting a potential advisor, come prepared with these questions to spark meaningful conversations. Listen for clear, honest answers, and don’t hesitate to dig deeper if something feels unclear, we’ve included second and third layer questions along with each main question to help you dig deeper. You can also verify their credentials through resources like FINRA’s BrokerCheck or the SEC’s Investment Adviser Public Disclosure. These questions are designed to help you find an advisor who is transparent, qualified, and client-focused.

Top 10 Questions to Ask

With over 300,000 advisors in the U.S., finding the right one can feel overwhelming. But don’t worry—asking the right questions can cut through the noise and help you find someone who’s truly in your corner. At Valinor, we’re all about transparency and trust, ranking advisors based on verified client reviews, not paid promotions. To help you make an informed choice, here are the top 10 questions to ask a financial advisor before signing on. Each question comes with why it matters and what kind of answers to expect. Below are the ten most powerful questions to ask a financial advisor before hiring them. Each question is crafted to reveal critical insights about their practices and suitability for your needs.

1. Are You a Fiduciary?

Why It Matters: A fiduciary is legally bound to act in your best interest, putting your financial goals ahead of their own profits. Non-fiduciary advisors, like some broker-dealers, may only need to meet a “suitability” standard, meaning their recommendations might not always be the best for you. Knowing this upfront ensures your advisor is committed to your success.

What to Expect: A clear “yes” or “no.” Fiduciaries, like many Registered Investment Advisers (RIAs) or Certified Financial Planners (CFPs), should confirm their status and explain how it benefits you. If they’re not a fiduciary, ask how they prioritize your interests to avoid conflicts.

Second layer question: Can you give me an example of a time where your Fiduciary standard was tested?

2. How Do You Get Paid?

Why It Matters: An advisor’s compensation can reveal potential conflicts of interest. Fee-only advisors, paid through a percentage of assets (e.g., 1%), hourly rates, or flat fees, are less likely to push products for commissions. Commission-based advisors might recommend investments that benefit them more than you, which could skew their advice.

What to Expect: A transparent breakdown of their fee structure. For example, they might say, “I charge 1% of assets under management annually” or “I earn commissions on certain products.” Ask for specifics on how their compensation aligns with your goals.

Second layer question: Is that the only way you get paid? Are there other ways you’re compensated?

3. What Are My All-In Costs?

Why It Matters: Beyond the advisor’s fees, you might face additional costs like fund management fees, trading costs, or custodial fees. These can eat into your returns over time, so understanding the full picture helps you assess the true cost of their services.

What to Expect: A detailed list of all fees, including their advisory fees and any investment-related costs. A good advisor will provide a clear estimate, such as “You’ll pay 1% to me, plus 0.2% for fund expenses.” Watch for vague answers, as transparency is key.

4. What Are Your Qualifications and Experience?

Why It Matters: An advisor’s credentials and experience show their expertise and ability to handle your financial needs. Certifications like CFP or Chartered Financial Analyst (CFA) indicate rigorous training, while years of experience suggest practical know-how.

What to Expect: They should share their certifications, education, and years in the field. For example, “I’m a CFP with 10 years of experience in retirement planning.” Here’s a guide to common qualifications.

Second Layer: Why did you choose to pursue those specific designations?

Third Layer: What ongoing training does the organization require from you to keep your designation? What’s the last continuing education course you took?

5. Do You Have Any Disclosures on Your Record?

Why It Matters: Disclosures include past regulatory issues, client complaints, or disciplinary actions. A clean record suggests reliability, while disclosures might raise red flags about an advisor’s integrity or performance.

What to Expect: Honesty about any disclosures, with context if applicable (e.g., “I had a minor complaint resolved years ago”).

How to: You should check for an advisors disclosures prior to meeting to them through the SEC’s Investment Adviser Public Disclosure or FINRA’s BrokerCheck

6. What Services Do You Offer?

Why It Matters: Advisors vary in their offerings, from investment management to comprehensive financial planning, tax advice, or estate planning. Ensuring their services match your needs—whether it’s retirement planning or wealth management—is critical.

What to Expect: A clear list of services, like “I provide investment management, retirement planning, and tax strategies.” If you have specific needs, such as planning for a child’s education, confirm they have expertise in that area.

Second layer question: Lay out exactly what you’re looking for help with, make sure the advisor has relevent experience with similar clients to yourself.

Third layer question: Ask about the advisors network, do they have contacts who can help in their weak spots?

7. What Is Your Investment Philosophy?

Why It Matters: An advisor’s investment approach should align with your risk tolerance and goals. Whether they prefer active management, passive index funds, or socially responsible investing, their philosophy should feel like a good fit for you.

What to Expect: A description of their strategy, such as “I focus on diversified, long-term investments with low-cost index funds.” They might also explain how they handle market downturns or adjust portfolios to meet your goals.

Second layer question: Ask about specific investments they reccomend for clients similar to you, you can use FINRAs Fund Analyzer to compare funds and understand how much a fund “costs”.

8. How Will We Communicate, and How Often?

Why It Matters: A strong advisor-client relationship depends on clear, regular communication. Knowing how often you’ll hear from them and through what channels (e.g., meetings, emails) sets expectations for collaboration.

What to Expect: Details on communication frequency, like “We’ll meet quarterly and I’m available for calls as needed.” They might also mention tools like client portals or apps for tracking your investments.

Second layer question: Who else in the back office will be working with me? How often can I ask you questions? How quickly can I expect a response? Will I be charged more for asking more questions?

9. How Do You Measure and Evaluate Investment Performance?

Why It Matters: Understanding how an advisor tracks performance ensures they’re focused on your long-term goals, not just short-term gains. Appropriate benchmarks, like the S&P 500 for stocks, help you gauge success fairly.

What to Expect: An explanation of benchmarks used (e.g., “I compare your portfolio to the S&P 500 for stocks”) and how often they report performance (e.g., quarterly reports). They should emphasize long-term progress over short-term volatility.

10. Can You Provide References or Examples of Similar Clients You’ve Helped?

Why It Matters: References or case studies provide proof of an advisor’s success with clients like you. This social proof can boost confidence in their ability to address your specific financial situation.

What to Expect: They might share anonymized case studies, like “I helped a couple in their 50s plan for early retirement,” or offer to connect you with current clients (with permission). This shows their track record and client satisfaction.

Second layer question: Is there a public review site where I can read reviews from your real clients?

Wrapping It Up

These ten questions are your toolkit for finding a financial advisor who’s not just qualified but also the right match for your needs. By asking about their fiduciary duty, fees, qualifications, and approach, you’ll gain clarity on whether they’re trustworthy and aligned with your goals. Listen for honest, detailed answers, and don’t shy away from digging deeper if something feels off.

At Valinor, we make this process easier by ranking advisors based on verified client reviews, not paid placements. Our platform lets you compare advisors by their specialties, locations obsessively curated by real clients. Combine these questions with our transparent, merit-based rankings, and you’re well on your way to finding an advisor you can trust. Your financial future is worth the effort—start asking these questions today!