Choosing the right financial advisor is a big decision, and asking the right questions can help you find someone who truly aligns with your goals and values. Here are 10 essential questions every investor should ask:
1. Are You a Fiduciary?
This determines whether the advisor is legally obligated to act in your best interest. Fiduciaries must prioritize your needs over their compensation.
2. How Do You Get Paid?
Advisors may charge a flat fee, an hourly rate, a percentage of assets under management, or earn commissions. Fee-only advisors tend to have fewer conflicts of interest.
3. What Are My All-In Costs?
Beyond the advisor’s fee, ask about fund expenses, trading fees, and any other hidden costs that could eat into your returns.
4. What Are Your Qualifications?
Depending on your needs, look for credentials like CFP (Certified Financial Planner), CFA (Chartered Financial Analyst), or CPA (Certified Public Accountant).
5. How Will Our Relationship Work?
Clarify how often you’ll meet, how accessible they are, and whether you’ll work directly with them or a team.
6. What’s Your Investment Philosophy?
Do they believe in active or passive investing? Are they focused on long-term growth or short-term gains? Their philosophy should align with your comfort level and goals.
7. What Asset Allocation Will You Use?
Ask how they’ll diversify your portfolio across asset classes and how they’ll adjust it over time as your needs change.
8. Who Is Your Custodian?
A reputable third-party custodian (like Schwab or Fidelity) adds a layer of security and transparency to your investments.
9. How Will You Manage Taxes?
Tax-efficient investing strategies—like tax-loss harvesting or asset location—can significantly impact your net returns.
10. What Other Services Do You Offer?
Some advisors provide holistic planning, including estate planning, insurance, retirement strategies, and debt management.
Chris graduated from the University of Maine, where he played hockey on a scholarship, and retired from professional hockey in 2007. In the community, he remains engaged, serving as a youth hockey coach. Chris holds the CERTIFIED FINANCIAL PLANNER™. Outside the office, he enjoys trying new food and wine, reading, traveling, playing golf and hockey, fat tire biking, and donating to local charities. His passions include being a husband and dad, lake life with the family, watching his son and daughter play sports, and spending time with his wife. To learn more about Chris, connect with him on LinkedIn.
Heisten Financial, LLC is a registered investment advisor with the SEC. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any securities, and past performance is not indicative of future results. Investments involve risk and are not guaranteed.