Key factors to consider and questions to ask before committing to a financial partner
Choosing a financial advisor is one of the most important decisions you’ll make on your path to financial security. Whether you’re just starting to build wealth, planning for retirement, or navigating a major life transition, the right advisor can provide clarity, confidence, and a strategy customized to your goals.
But with so many titles, fee structures, and specialties out there, how do you know who’s truly the right fit?
This guide breaks down the essential questions to ask—and what to listen for in the answers—so you can feel empowered in selecting a financial advisor who aligns with your needs, values, and vision for the future.
Do you serve my best interests?
A fiduciary is an advisor who is legally and ethically bound to act in your best interest. Fiduciary advisors are required to provide transparent, unbiased advice and avoid conflicts of interest. They prioritize your financial well-being over their own profits.
Are you a fiduciary?
How do you ensure that they are the best products for your clients?
Do you have any conflicts of interest in managing your money?
How do you get paid?
Financial advisor firms typically have two main payment structures: fee-only and fee-based or commission-based. Fee-only advisors are paid directly by clients through a flat fee, hourly rate, or a percentage of managed assets, often leading to more objective advice since they don’t earn commissions. Fee-based or commission-based advisors may earn both client fees and commissions from recommended products. It’s important to ask about potential conflicts of interest to ensure their advice aligns with your best interests.
What is your fee structure?
Do you earn commissions for selling products or services?
Is there a minimum account size to work with you?
What is the scope of your services?
Beyond investment management and financial planning, advisors may offer services like retirement planning, tax strategies, estate planning, and insurance analysis. Knowing their full range of services helps ensure they can meet your long-term goals.
What type of services do you offer?
How long have you been providing these services?
Do you have support in each of these areas?
What is your investment philosophy and process?
An advisor’s investment philosophy shapes how they manage your money, covering beliefs on market behavior, risk, diversification, and growth. Their process details how they select investments, build portfolios, and adjust strategies. Understanding both can help ensure they align with your goals and comfort level.
How will you select and monitor my investments?
What resources will I have when working with you?
What asset allocation will you use?
What is your relationship management and communication style?
A financial advisor’s communication style is key to a successful partnership. Some offer frequent updates, while others provide periodic overviews. Ensure they listen to your concerns and explain concepts clearly. Setting expectations upfront can help you stay informed and supported.
How will we work together?
How will you communicate with me, and how often?
How quickly can I expect you to respond when I reach out with questions?
How will you update me on the performance of my investments?
Ready to partner with a team that puts your interests first? Let’s start the conversation and see how FCT can help you achieve your financial goals.