When you’re gearing up to meet a potential financial advisor, knowing which questions to ask is important. Not every advisor out there will address your concerns head-on. Figuring out the right questions is a big deal, but hearing the right answers? That’s what really helps you decide if they’re the best fit to help you reach your financial goals. With that in mind, let’s go over the top five questions we get asked in our introductory meetings with potential clients like you.
What types of clients do you typically work with?
This question is important because it helps you determine if the advisor understands situations like yours. Say you’re running a small business; finding out if they’ve helped folks organize their personal and business money matters is key. Or if you’re close to hanging up your work boots (or shoes) for retirement, you need someone savvy about moving from wealth accumulation to distribution. This will give you a clearer picture of their experience related to your life stage, goals, and financial situation.
What types of services do you offer?
Many folks looking for financial advice don’t realize that advisors may offer a very narrow or broad set of services. Some are all about managing your investments, while others take a bigger-picture approach (like us). They’ll help you with everything from tax and estate planning to investment and risk management. We believe that a more holistic view is better, so you can understand and optimize all aspects of your finances.
What returns should I expect?
Many people are eager to ask this question, but it’s best to approach it with caution. If a financial advisor promises specific returns, that’s a red flag. A credible advisor will explain that market returns are unpredictable and vary based on economic conditions. Instead of focusing on specific return promises, a reputable advisor will discuss strategies that align with your risk tolerance, long-term goals, and financial plan. Look for answers emphasizing a disciplined investment approach rather than “quick wins.”
Will you lower my fees?
While it’s natural to be concerned about fees, the focus should be on the value provided, including return on investment. Ask about the fee structure and what you’ll be receiving for those fees. Look for an advisor who is transparent about their pricing model and will explain how fees correlate with the services provided. Cheaper fees don’t always mean better service—in fact, lower fees may come at the cost of less personalized advice or fewer services.
How do you measure success?
Knowing how an advisor measures success shows you what they value, and may also confirm that your goals are aligned. Some advisors are all about the short-term results and returns vs. market indices. Others measure the progress you’re making toward achieving your financial targets – buying your dream home, getting the kids through college, or making sure you’re set for a comfy retirement. You’ll find both types, so you can decide whether the shorter- or longer-term approach is best for your needs.
Additional Questions Worth Asking
In addition to these top five, here are two other questions you can ask to give you a deeper understanding of how your advisor will work with you:
- How do you work with my other advisors (CPA, lawyer, etc.)? Coordination between your financial advisor, CPA, and attorney ensures that all aspects of your financial life are aligned. A good advisor will collaborate with these professionals to create a cohesive plan.
- Can you help me set up wills and trusts? Estate planning is a vital part of financial security. While your advisor may not draft these documents, they should be able to help coordinate with an attorney to ensure your estate plan aligns with your financial goals.
- Are you a fiduciary? We’re often asked this question because you want to make sure any potential advisor you work with is legally obligated to act in your best interest. It’s important to note that all financial advisors (like ours) affiliated with a Registered Investment Advisor (RIA) operate in a fiduciary capacity, meaning they are required to prioritize your needs over their own. This is important because it helps to ensure that the advice you receive is objective and transparent and that the recommendations are tailored to your unique financial goals – not influenced by sales incentives. Learn more about fiduciary duty here. Learn more about fiduciary duty here.
Why You Should Care About These Questions
Picking an advisor is all about asking the right questions and being comfortable with the answers. Every advisor is different, and their responses can show you what they’re made of—their experience, how they approach financial planning, and how much they’re willing to do for the fees they charge. Remember, this isn’t just about finding someone to look after your stocks or savings. You want to find a genuine partner to guide your financial journey. Asking these questions is a great starting point!
Schedule a no-obligation introductory meeting with our team to learn how Vita can help you.
