Questions to Ask a Financial Advisor

Ask whether compensation is a flat fee, hourly, a retainer, a percentage of assets under management (AUM), commissions, or a combination. Compensation can shape incentives, so it’s important to understand exactly what you pay, what you get in return, and whether there are additional product or platform costs beyond the advisor’s fee.

Ask about commissions, referral fees, revenue sharing, sales contests, or any other compensation tied to recommending specific products, platforms, or custodians. Investors should look for clear disclosure of any conflicts and how the advisor manages them.

An advisor’s client load can affect responsiveness and how proactive the service can be. Ask how many ongoing relationships the advisor supports, what the service model looks like, and how meeting cadence and follow-up are handled when markets or life circumstances change.

Clarify who will lead planning, who will make day-to-day investment decisions (if applicable), and who will be your primary contact. Ask what happens if your lead advisor is unavailable and whether you’ll have continuity if the team changes.

Ask about the review cadence (annual, semiannual, quarterly, or as needed) and what is covered—such as cash flow, investments, tax planning coordination, insurance reviews, and estate-related checklists. Also ask whether the advisor proactively schedules reviews or meets only when you request it.

Some firms rely on standardized models; others tailor recommendations to each household’s objectives, tax situation, and constraints. Ask how your plan and portfolio are customized, what inputs drive decisions, and how recommendations are documented and reviewed over time.

Ask who owns the firm, whether the advisor is affiliated with a broker-dealer, insurance company, or bank, and whether any product or platform requirements influence recommendations. Investors should understand how independence, oversight, and incentives work in the advisor’s business model.

Ask what “tax planning” includes (for example, coordinating tax-efficient withdrawals, reviewing tax returns, or evaluating Roth conversion opportunities) and whether tax preparation is offered or coordinated with a CPA. Investors should understand what’s included, what’s not, and how recommendations are implemented and tracked.

Most advisors are not attorneys, but many can help coordinate with legal counsel by reviewing beneficiary designations, account titling, and the financial implications of an estate plan. Ask how the advisor collaborates with your attorney and what documents or decisions they typically help you review.

If family planning is important to you, ask whether the advisor can support topics like education funding, gifting strategies, beneficiary planning, or family meetings. Clarify whether this support is included in your engagement or available as an add-on.