Some Questions to Ask Your Financial Advisor

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Looking for a financial advisor is as important as looking for a great car, you must know what you want, how much you are willing to pay, and you must ask crucial queries prior making an investment in a new vehicle. You have to take your time and do your responsibility to make sure you are receiving the value you truly deserve from your advisor.

Hiring a financial advisor is an astute idea if you are uncertain of the things regarding your portfolio, or you don’t have any idea what to do with an enormous inheritance. Asking your financial advisor could help you to easily compare and contrast their offerings and potential relationships. Through this, you will know if he or she is matched for you or if he or she possesses the key traits of a good advisor.

However, there may be times that you don’t know what to ask your advisors. This article is written to recommend some questions you should ask your chosen financial advisor if he or she is not able to answer these questions, or gives you an indirect response, you may want to consider getting a second opinion on your portfolio.

1.What are your qualifications?

Asking this question will make you aware of your advisor’s credentials, or what certificates he or she holds. Looking for a great advisor must fall into one of these types of certified advisors (professionally speaking): a Certified Financial Planner (CFP), a Certified Financial Analyst (CFA), and a Certified Public Accountant (CPA).

It is another good idea to pick an advisor that has at least 10 years of experience dealing with clients that are same with you. Of course, you also want your advisor to have a good and clean record; those who haven’t had any problems with the law or regulators. On top of everything, you would want to be sure that there are no red flags before trusting to an advisor your hard-earned cash.

2.How much do you charge?

It is a great idea to be aware of what your costs will be in advance. If your advisor is compensated a fee and does not receive a commission on products, then you can ensure they will likely act in your best interest rather than acting like just a salesman. You should always remember that most professionals charge 1% of investments managed yearly.

In addition, it is also a good idea to ask what other products your advisor sells. This can warn you of potential problems that might show up. Every time your advisor suggests a certain product, you must simply ask if they get a commission if you purchase it.

3.How do you invest?

This question might appear too personal to ask, but this can give you a better outlook on how your financial advisor manages your portfolio in comparison to your ways. Obviously, you cannot anticipate your advisor to disclose his personal information to you, but if he or she is fine with revealing his personal strategies to guarantee success, then they might apply similar strategies for your portfolio. Another important question to ask your advisor is if he or she would count on the firm to manage your money if something were to happen to them.


In finding a financial advisor, you would never choose someone whom you do not completely know, or at least with a little knowledge about him or her. Therefore, you should never entrust your hard-earned money to just any advisor out there. Don’t hesitate to ask different questions. Asking questions will help be aware, especially in your investment life where you must be really aware of.

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