In our last post, we explored the five essential pillars of selecting a financial planner. But once you’ve narrowed down your list of candidates, the real work begins: the face-to-face meeting.
Walking into an advisor’s office can feel overwhelming, but remember that you are the one conducting the interview. Finding the right fit isn't just about their credentials; it's about uncovering how they operate when the spreadsheets are closed. To help you cut through the marketing jargon and get to the heart of how a firm will actually treat your money, here are seven critical questions to ask during your first meeting:
1. Are you a fiduciary, and will you act as one at all times?
You want someone legally obligated to put your best interest first—not just sell products.
2. What are your qualifications and credentials?
Look for designations like CFP®, CPA, and CFA. These indicate a strong educational and ethical foundation. While it may seem impressive for an advisor to have many letters after their name, many designations require nothing more than to pay a fee to get some letters behind your name. Designations like CFP®, CPA, and CFA require passing rigorous exams and come with experience requirements before you can actually put the letters behind your name.
3. How do you get paid? Do you face any conflicts of interest when managing your client’s money?
Fee-only, fee-based, or commission? Make sure you understand how their compensation might influence their advice and any possible conflicts of interest they may face.
4. Who is your typical client?
You want someone familiar with situations similar to yours—whether you’re a business owner, pre-retiree, young family, or high-net-worth individual.
5. What services do you provide?
Investment management? Financial planning? Tax strategies? Estate planning? The more holistic, the better.
6. How will we communicate, and how often?
Make sure their communication style and frequency align with your expectations.
7. Can I see a sample financial plan or proposal?
A good advisor should be able to walk you through a sample plan and explain how they tailor advice to clients.
Pro Tip: Interview at least two or three advisors before making a decision. It’s worth the effort to find someone who truly aligns with your needs and values.
Stayed tuned for our final post where we will be discussing the true meaning behind the word “fiduciary”.