Questions to ask your advisor.

Why it matters:

A fiduciary is legally bound to act in your best interest, while non-fiduciary advisors only need to recommend products that are "suitable." Understanding if your advisor is a fiduciary helps ensure they’re prioritizing your needs over their own potential gains.

A great advisor’s response:

"Yes, I am a fiduciary, which means my obligation is to always put your best interest first when making recommendations. Every piece of advice I give is crafted to align with your personal financial goals and values, not just a 'suitable' option."

Why it matters:

Some advisors receive commissions from third parties like mutual funds or insurance companies, which can create conflicts of interest. Knowing if your advisor is paid solely by you ensures their advice is unbiased and not influenced by outside incentives.

A great advisor’s response:

"I am only compensated by my clients. I do not receive commissions from any third parties. This allows me to offer completely objective advice, ensuring that the recommendations I make are always in your best interest."

Why it matters:

Your advisor’s qualifications demonstrate their expertise and knowledge. Certified professionals like CFPs (Certified Financial Planners) have met rigorous standards in financial planning and ethics, ensuring you’re working with a skilled advisor.

A great advisor’s response:

"I’m a CFP® (Certified Financial Planner), which means I’ve completed extensive training in financial planning, ethics, and client care. I also stay up to date with continuing education to ensure I’m always providing you with the most current and relevant advice."

Why it matters:

Checking an advisor’s disciplinary history can reveal any past unethical practices or legal issues. You want to ensure that your advisor has a clean record and adheres to the highest ethical standards.

A great advisor’s response:

"I have never been disciplined by the SEC, FINRA, or the CFP Board. I take my fiduciary duty seriously and adhere to the highest ethical standards in all client relationships."

Why it matters:

Understanding where and how meetings will occur can ensure convenience and comfort. Knowing whether meetings are in-person or virtual helps you assess whether the advisor’s approach fits your lifestyle.

A great advisor’s response:

"We can meet wherever works best for you—whether that’s at my office, your home, or virtually. I believe in making the financial planning process as comfortable and accessible as possible for you."

Why it matters:

Transparency is key in any advisory relationship. Being able to see your investments and financial situation in real-time builds trust and helps you stay informed about your financial progress.

A great advisor’s response:

"You will have access to a secure online portal where you can view all of your investments and account details 24/7. I also provide regular updates during our meetings to ensure you’re always aware of where your money is and how it’s performing."

Why it matters:

Tax implications can significantly impact your investment returns and overall financial plan. An advisor who considers taxes as part of your strategy is helping you optimize your financial outcomes.

A great advisor’s response:

"Tax planning is an integral part of my approach. I work closely with tax professionals or collaborate with your tax advisor to ensure that we’re minimizing tax liabilities while maximizing your investment returns and retirement income."

Why it matters:

Liquidity is crucial for unexpected expenses or emergencies. Understanding how accessible your money is and whether there are fees for withdrawals helps you avoid surprises when you need to access your funds.

A great advisor’s response:

"Your money is accessible whenever you need it, though some investments may have restrictions or fees for early withdrawals. I always make sure you understand these terms before recommending any investment so there are no surprises."

Why it matters:

An advisor’s investment philosophy reflects how they approach risk, growth, and financial security. Knowing their philosophy helps you determine whether it aligns with your own goals and risk tolerance.

A great advisor’s response:

"My investment philosophy is centered on long-term growth and risk management. I believe in creating diversified portfolios that match your unique financial goals and risk tolerance, while also adapting as your needs evolve over time."

Why it matters:

A well-rounded advisor offers more than just investment advice. Comprehensive services, such as retirement planning, estate planning, and tax strategy, ensure that all aspects of your financial life are being addressed.

A great advisor’s response:

"Besides investment management, I provide a range of services including retirement planning, tax-efficient strategies, estate planning, and ongoing financial education to ensure every part of your financial life is supported."

Why it matters:

The ADV Part II is a document that discloses an advisor’s services, fees, and any conflicts of interest. Reviewing this document ensures transparency and helps you understand exactly how your advisor operates.

A great advisor’s response:

"Absolutely! I’ll provide a copy of my ADV Part II, which outlines all of my services, fees, and any potential conflicts of interest. I believe in complete transparency, so you can feel confident in our working relationship."