Questions to Ask a Financial Advisor Before You Hire One
Before you hand someone the keys to your retirement savings, you deserve honest answers to a short list of questions. Most people never ask them because they don’t know they should, or because they assume a nice office and a firm handshake are enough. They aren’t.
If you have $500,000 or more in investable assets and you’re evaluating a financial advisor, these questions will tell you more in a 30-minute conversation than most people learn in years of working with the wrong person. Freedom Capital Advisors is a Florida-registered investment adviser, and we’ll answer every one of these ourselves.
Are You a Fiduciary?
This is the first question, and the answer should be simple: yes or no. A fiduciary is legally required to act in your best interest at all times, not just when it’s convenient. Many advisors operate under a “suitability standard” instead, which only requires them to recommend products that are suitable for your situation, even if better alternatives exist.
If the answer involves qualifications, caveats, or the phrase “in most cases,” treat that as a no.
How Do You Get Paid?
There are three common compensation models: fee-only, fee-based, and commission-based. Fee-only advisors charge you directly, either as a percentage of assets, a flat fee, or an hourly rate. They don’t earn commissions on products they recommend. Fee-based advisors charge fees but can also earn commissions. Commission-based advisors make money when you buy certain products.
The model matters because it shapes what an advisor recommends. Ask for specifics: what percentage do you charge, and do you receive any compensation from third parties for the products you put me in?
What Is Your Investment Philosophy?
You’re looking for a clear, consistent answer here. Any advisor worth hiring should be able to explain in plain terms how they think about building and managing a portfolio, what they do when markets decline, and what they avoid entirely.
If the answer is vague or sounds rehearsed, it’s likely that the advisor is not actively managing your assets, keep asking questions. A good advisor should be able to point to a specific framework and explain the reasoning behind it.
How Will You Communicate With Me?
Find out how often you’ll hear from them, through what channel, and who you’ll actually be talking to. Some firms route ongoing client communication to junior staff after the initial meeting. Others assign you to a support team you’ve never met.
Ask directly: if I call with a question next Tuesday, who picks up the phone?
What Is Your Experience With Clients Like Me?
This isn’t about credentials. It’s about fit. An advisor who primarily works with young professionals accumulating wealth thinks differently from one who has spent decades managing retirement income for people who are drawing down. Ask about their typical client profile, their average account size, and how many clients they manage.
What Happens to My Account If Something Happens to You?
Succession planning is a question most people never think to ask until they need the answer. If your advisor retires, gets sick, or sells the practice, what happens to you? Is there a continuity plan? Who takes over? Will you have any say in the transition?
At Freedom Capital Advisors, Ron and Logan work together specifically because the answer to this question matters. A father-son team with a shared investment philosophy means continuity isn’t an afterthought.
Can You Show Me a Sample Portfolio or Recent Performance?
Be careful here. Past performance doesn’t predict future results, and any advisor who uses performance as a primary selling point is raising a flag. But it’s reasonable to ask how they currently have clients positioned, what their general allocation philosophy looks like, and how they have handled market downturns.
What you’re listening for is discipline and process, not bragging rights.
Frequently Asked Questions
What is the most important question to ask a financial advisor?
Whether they are a fiduciary. A fiduciary is legally obligated to act in your best interest at all times. Advisors who operate under a suitability standard only need to recommend products that are appropriate for you, not necessarily the best option available. The distinction has real financial consequences.
How do I know if a financial advisor is trustworthy?
Check their registration and disciplinary history at FINRA BrokerCheck (brokercheck.finra.org) or the SEC’s Investment Adviser Public Disclosure database (adviserinfo.sec.gov). Look for any complaints, regulatory actions, or disclosures. Then ask directly about their compensation model and fiduciary status. A trustworthy advisor answers these questions without hesitation.
What is the difference between a fee-only and commission-based financial advisor?
A fee-only advisor is paid directly by you and does not earn commissions on products they recommend. A commission-based advisor earns money when you purchase financial products such as annuities, mutual funds, or insurance policies. The difference matters because commission structures can create incentives to recommend products that benefit the advisor more than the client.
Should I work with a financial advisor near me or does location matter?
For most of what a financial advisor does, location is less important than it used to be. That said, there is real value in working with someone who understands your local tax environment, cost of living, and the specific financial landscape of your area. In Florida, for example, there are specific considerations around property taxes, no state income tax, and retirement income planning that a locally experienced advisor will navigate more fluently.
How many clients should a financial advisor have?
There is no universal rule, but an advisor managing several hundred clients is likely providing less individual attention than one managing a focused book of relationships. Ask directly how many clients they work with and what a typical week of client interaction looks like for them.
