What Questions to Ask Before Hiring a Financial Advisor

May 12th, 2021 by
questions to ask a financial advisor

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Having a financial advisor can take the strain of handling your finances. But what types of questions do you need to ask so you get the right person dealing with your money?

When interviewing for a new financial advisor you need to make sure you ask the right questions.

Here are some go-to questions, according to The Balance.

How long have they been practicing?

Unlike other professions, financial services do not require any internships or apprenticeships to be classed as a professional. Find out how long they have been working in a particular field. Verify their expertise is in the area you are seeking assistance for. Anything less than four years’ experience should be considered to pass.

Related: How to Build Your Credit From Scratch

Who is their ideal client?

Is the person you are looking to hire going to make your money work in the right way for you? If they work in retirement funds and you are looking at someone who specializes in investment portfolios, it might be good to pass on this advisor.

Ask them to explain a financial question to you.

If you ask the financial advisor to explain something to you, and you don’t understand the response, ask for clarity. If you still don’t understand, move on to someone else. Having things explained in a language you can understand is very important to understand your financial direction.

Related: How to Stay Organized With Your Finances

How do they get compensated for helping you?

This is a big question and can give you a lot of understanding of the help you might be provided. If they say that they are paid by the company, tread cautiously. They might be incentivized to only offer you the support and products that their company wants them to use.

However if they say they say you will pay their fees (like a fee-only financial advisor), there will be an incentive to help you with your money goals.


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