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7 Questions to Ask Before Hiring a Financial Advisor
Hiring a financial advisor means hiring for a role most people have never interviewed for. These seven questions do most of the sorting in one meeting.1. Are You a Fiduciary at All Times, in Writing?
Some advisors act as fiduciaries only when selling advice and switch to a sales standard for products. Ask for it in writing: "a fiduciary for all advice, all accounts, all the time."
2. How Exactly Are You Paid, and By Whom?
Percent of assets (typically 0.5%–1%), flat fee, hourly, or commissions. "Free" planning funded by product commissions is the answer that ends most interviews. Ask them to total last year's fees earned from your account type — they are required to provide much of this on request.
3. Who Holds My Money?
Custody should sit with an independent custodian — a major brokerage — not with the advisor's own entity. Bernie Madoff is the extreme case; small advisory firms commingling assets is the common one.
4. What Are Your Credentials, and What Do They Require?
CFP certification carries a fiduciary duty and continuing education. Anyone can print "financial advisor" on a card; the designations are the part that binds.
5. Show Me Three Clients Like Me
Not names — profiles. A specialist in retirement decumulation for people with $500,000 to $2 million is a different professional from an accumulator coach. Fit matters more than pedigree.
6. What Do I Get Each Quarter?
Insist on a defined deliverable: a written plan, a rebalancing record, a tax report with realized gains and losses. "We stay in touch" is not a report.
7. How Would We Break Up?
Ask about exit mechanics: notice period, prorated fees, who transfers what. An advisor who answers smoothly has been asked before — usually a good sign. One who bristles has not, or has, and knows the answer is ugly.
Two or three evasive answers are enough to keep looking. Good advisors expect these questions; the best ones answer before you ask.
This article is general educational information only, not financial, tax, investment, accounting, or legal advice, and is not a recommendation to buy, sell, or hold any product or security. Figures reflect published IRS, HMRC, and Social Security Administration guidance for 2026 and are subject to change and annual indexing; always confirm current thresholds with the official source before acting. Rules differ by country, state, and personal situation, and nothing here creates a fiduciary or advisory relationship. This site is supported by advertising, which does not influence our editorial conclusions. For any decision with real financial consequences, consult a licensed fiduciary advisor or tax professional.