Six Questions to Ask When Hiring a Financial Advisor 05.05.2023

Are you on the hunt for a high-quality financial advisor? There are (literally) thousands of people who hold themselves out as financial advisors just in California alone! How can you possibly figure out who is right for you? How do you know what questions to ask when hiring a financial advisor?

We’re here to support you on your search for a financial advisor or wealth manager. In this article, we’re giving you six important questions to ask a potential financial advisor to make sure they are the best fit for you, your life, and your financial situation.

Hiring a financial advisor shouldn’t stress you out. You know the benefits of hiring a financial advisor –, and your financial future is serious business – but you just need the right tools to make sure you’re picking the right match..

 Your financial advisor needs to have your best interests front and center. It’s the definition of fiduciary.

How do you know you are talking with a high-quality financial advisor?

Trust

Do you trust them with not only the personal details of your financial accounts but also with the personal details of your life? A high-quality financial advisor engenders trust.

Experience

Do they have a history of successful performance and a network of happy clientele who are thrilled to step forward and vouch for their professionalism and knowledge? A high-quality financial advisor has extensive experience in helping their clients reach their financial goals with confidence and clarity.

Fiduciary Standard of Care

Are they legally bound to serve in your best interests? The definition of fiduciary is that they aren’t beholden to the company that employs them or to a service provider (such as an insurance company) toin order to earn an income. They are beholden to YOU as their client. A high-quality financial advisor acts as a fiduciary.

Finding out whether a financial advisor has these basic three requirements—trust, experience, and a responsibility of fiduciary care—are why it’s crucial to ask a potential financial advisor the six questions below. Questions 1 and 2 speak to their experience and trustworthiness, while . Questions 3 and 4 speak to whether they will be acting in your best interests rather than their own 100% of the time— or that they meet the definition of fiduciary. Questions 5 and 6 help to ensure that the services they provide match your needs and your philosophies.

Here are the six questions to ask when hiring a financial advisor

1. What is your education and experience?
2. Do you have any compliance or regulatory infractions?
3. Are you required by law to operate within a fiduciary or suitability standard of care?
4. How exactly are you compensated?
5. Do you provide comprehensive financial plans?
6. What is your financial planning and investment philosophy?

If the advisor you’re interviewing doesn’t answer these six questions articulately and passionately, you may want to continue your search.

The point of finding a fiduciary financial advisor with experience, and who you trust will be a good partner for you is that it increases your odds of successfully growing and protecting your net worth and assets over time, especially with how unsettled the markets, economy, and political climate can be.

If you’re looking for a new financial advisor—even if you’re currently working with one—asking them these six questions to ask when hiring a financial advisor, and doing your due diligence to assure they’re answering truthfully, will help you be confident that you’ve got the right financial advisory partner on board.

Are you considering hiring a financial advisor? Do you think that our Sacramento wealth management firm might be a good fit? Please, use this link to set up a no-obligation consultation.

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