Here’s What You Need To Ask From An Investment Advisor
- Editorial Staff
- 48 minutes ago
- 3 min read
There are over 321,000Â financial advisors in the U.S., so you have a lot of options when choosing someone to help with your money.Â
That’s why it’s important to ask the right questions before deciding who to work with. You want to make sure they’re qualified and truly able to help you reach your goals.
And your goals likely go beyond just money. The difference between reaching those goals—or falling short—can often depend on the advice you get.
Today’s advisors do more than just talk about numbers. Many now act more like coaches or even therapists. A great investment consultancy firm knows how to connect with you, understand your problems, and help make your life easier—not just explain spreadsheets.
How they work can really impact your success as an investor. The questions below can help you find the right fit and make sure your advisor is truly looking out for you.
1. How many clients do you have?
Some advisors take on hundreds or even thousands of clients. To manage this, they often give everyone the same investment plan and don’t spend much time with each person.Â
That’s not good—you want an advisor who gives personal attention and creates a plan that fits your unique needs.
2. What’s your service model?
Ask how often they meet with clients. Ideally, you should have a meeting every three months (quarterly) to review your investments. Also, ask about their reports.
Good reports do more than just show how much money you’ve made or lost—they explain why your investments did well or poorly. If the report lacks detail, they might be trying to hide something.
3. How do you get paid?
If an advisor makes money from commissions, they might recommend products that benefit them—not you.Â
Try to work with a fee-only advisor who only charges for their time or services. Some products, like indexed annuities or structured investments, pay big commissions and may not be in your best interest.
4. What’s your experience?
Credentials are helpful, but real-world experience matters more. Look for someone who’s been through both good and bad markets. New advisors can panic in tough times or ignore risks in booming markets. A seasoned investment strategy advisor knows how to handle both.
5. What’s your investment philosophy?
Be careful if someone claims they can "predict the market." A good advisor focuses on diversifying your investments and uses a thoughtful, long-term plan, not just past data. Relying only on old performance to predict the future usually doesn’t work.
6. What kind of support do you have?
Great advisors don’t work alone. They should have access to a strong team and trusted outside experts to help them research investments and strategies.Â
Also, be cautious of companies that look good because of past performance—the people behind that success might not be there anymore.
7. What are your values?
Your advisor’s values should match your own. The culture of their company matters too. A place with unhappy staff and high turnover probably won’t provide the best service. A strong, positive company culture means better advice and support.
8. What are your fees?
Fees matter. Lower fees mean more money stays in your pocket. That said, not all investments cost the same—bonds are cheaper to manage than stocks, and alternative investments (like real estate or hedge funds) often have higher fees.Â
Just be sure you understand why an advisor is recommending something, especially if it comes with high costs or commissions.
Final Thoughts
The investment world often rewards people based on how many clients they bring in—not how well they take care of them. Some advisors spend more time looking for new clients than helping the ones they already have.Â
But choosing the right advisor isn’t just about performance—it’s about finding someone you can trust to help you and your family for the long haul. Ask the right questions and take your time—you’ll be glad you did.
Related Content