Selected theme: Questions to Ask a Prospective Financial Consultant. Before you entrust your life savings to anyone, arm yourself with smart, empathetic questions that reveal values, competence, and true alignment with your goals.
Start with Purpose: Why Your Questions Matter
Begin by explaining what matters most to you and ask open-ended questions that invite reflection. When a consultant feels your priorities clearly, you gain richer, more honest answers that highlight how they think, not just what they sell.
Start with Purpose: Why Your Questions Matter
A reader named Maya asked one simple question: Are you a fiduciary at all times? The consultant hesitated, revealing commission-heavy products. That pause nudged Maya to keep looking, ultimately finding an advisor aligned with her goals and transparent fees.
Credentials, Competence, and Fiduciary Duty
Are You a Fiduciary at All Times?
Ask whether the consultant is legally obligated to put your interests first in every engagement. Clarify situations where different standards might apply, and request examples of how they resolved trade-offs when client interest and firm incentives could conflict.
Which Credentials Do You Hold and Why Do They Matter?
Invite a plain-language explanation of designations like CFP, CFA, or CPA/PFS and how each shapes the consultant’s expertise. Ask about continuing education, examination requirements, and how those credentials translate into day-to-day better decisions for your plan.
How Do You Keep Your Advice Unbiased?
Request details on research methods, investment committee oversight, and decision-making checks and balances. Ask for one example where they recommended a lower-cost, lower-commission solution over a more lucrative alternative, and how they documented that client-first decision.
Compensation and Conflicts of Interest
How Are You Paid? All-In Cost Clarity
Ask for a full breakdown: advisory fees, planning fees, fund expense ratios, trading costs, platform charges, and any embedded product fees. Request a hypothetical scenario using your estimated balances to see real dollar amounts over a typical year.
What Incentives Could Distort Recommendations?
Probe for revenue sharing, sales contests, proprietary funds, wrap accounts, or insurance commissions. Ask how they audit and disclose conflicts, and request one real example where they mitigated a potential conflict in favor of a client’s best interest.
Can You Show a Sample Invoice and ADV Part 2A?
Request a sample invoice that itemizes charges and a current Form ADV Part 2A and Form CRS. Ask them to explain each section in plain English so you understand exactly what you are paying and what services you receive.
Experience, Strategy, and Fit
Who Is Your Ideal Client and What Problems Do You Solve?
Strong consultants know their lane. Ask about typical client profiles, such as tech professionals with equity comp, business owners nearing exit, or retirees prioritizing income stability. Listen for depth, not breadth, and stories of how they solved similar challenges.
Describe Your Investment Philosophy in One Page
Invite a concise summary of core beliefs: diversification, rebalancing discipline, tax efficiency, risk management, and evidence-based or active approaches. Ask for examples of portfolio changes during volatility and the rationale that guided those decisions under pressure.
How Will We Measure Success Beyond Market Returns?
Ask how progress ties to life goals, cash flow resilience, and risk-adjusted outcomes. Clarify metrics like drawdown limits, funding ratios for major goals, and milestones for debt, savings rate, and tax efficiency across your entire financial plan.
What’s Your Regulatory Record and Who Custodies My Assets?
Check regulatory history using tools like BrokerCheck or the Investment Adviser Public Disclosure site. Confirm that assets are held with a reputable independent custodian, and clarify protections, statements, and how trade confirmations and withdrawals are authorized and monitored.
How Do You Protect My Data and Privacy?
Ask about multi-factor authentication, encryption standards, vendor due diligence, cybersecurity insurance, and incident response plans. Request a summary of annual security testing and how they train staff to prevent phishing, wire fraud, and social engineering attacks.
What’s the Succession Plan if You’re Unavailable?
Inquire about formal continuity agreements, documented client playbooks, and how your plan proceeds if the lead consultant is incapacitated. Ask how your files, notes, and investment policy migrate seamlessly so your goals remain on track without disruption.
Onboarding and Trial Steps
Ask for a limited-scope engagement or a second-opinion review of your current plan and portfolio. A thoughtful consultant welcomes scrutiny and uses the exercise to demonstrate how their process improves clarity, confidence, and measurable outcomes for you.
Onboarding and Trial Steps
Request a day-by-day or week-by-week checklist that outlines meetings, document requests, quick wins, and decision deadlines. This visibility shows operational excellence and helps you stay engaged without feeling overwhelmed by competing tasks or confusing financial jargon.