How to pick a financial advisor | What questions do you need to ask to make sure you are getting the best advice?

Oct 20, 2021, 3:02 PM | Updated: Oct 21, 2021, 3:18 pm
How to pick a financial advisor...
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Teton Wealth GroupThis article about how to pick a financial advisor is presented by Teton Wealth Group, and take their retirement mistakes quiz to see where you stand.

Before you decide on a financial advisor, check to make sure you’ll be getting the services and the advice you are going to need. The absolute best way to do that is to start by asking the right questions. Here are 10 questions you should ask your potential financial advisor.

1. What do you like about your job?

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Without a doubt, how to pick a financial advisor shouldn’t be too complex. But you’ll want clear trajectories. Firstly, no matter what type of professional you’re looking for, it helps to find someone who likes their job—and who isn’t just punching a clock.

2. Which services do you provide to your clients?

How to pick a financial advisor - Financial Advice

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Without a doubt, your financial advisor should offer services that will help you solve the problems you may face in retirement. That includes helping you:

  • Figure out how much you need to retire, and set savings benchmarks to get you there
  • Pick investments that match your risk tolerance and time horizon
  • Develop a long-term investment strategy
  • Rebalance your investment portfolio
  • Manage your expenses now and in retirement
  • Make plans for long-term care
  • Create a favorable tax strategy

3. What are your qualifications?

How to pick a financial advisor

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Importantly, you’re looking for someone with advanced financial and retirement-planning education. Designations to consider include Certified Financial Planner (CFP®), Chartered Financial Consultant (ChFC®), and Chartered Life Underwriter (CLU®). Another credential high on the list is Retirement Income Certified Professional (RICP®), which involves retirement-specific planning training and education.

4. Are you a fiduciary?

How to pick a financial advisor - Retirement Planning

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“Fiduciary duty” is a legal term that means that one party has the obligation to act in the best interests of the other party. You want your advisor to point you toward investments that are in your best interest—not theirs. It’s great if the two coincide, but yours should come first.

5. How will I compensate you?

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It’s important to know upfront how you’ll compensate a potential retirement advisor. You should ask whether you’ll pay hourly, per transaction, or annually, based on the value of your assets. Other advisors may be compensated through commissions on the products they provide.

6. Does your firm hold my money and investments?

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Your financial advisors shouldn’t come into contact with your assets (except for the fees you pay for their services). Instead, the advisor should contract with a reputable custodian, which could be a third party or owned by their firm.

Well-known third-part custodians include Charles Schwab, Fidelity Institutional, Pershing/BNY Mellon, TD Ameritrade, and LPL Financial.

7. What’s your investment philosophy?

How to pick a financial advisor - Investments

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This is the most basic of questions and one any retirement advisor should be able to answer without hesitation. You should hear about the discipline behind investment strategies and how those strategies will help you achieve an annual return designed to reach your investment goals. This should all be provided in simple terms you can understand.

8. How will we touch base about my investments?


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You should expect contact on a quarterly basis at a minimum. Monthly is even better. Your advisor should explain every buy or sell transaction, and they should provide periodic reviews of the status of your portfolio, including educational resources if appropriate (or if you ask for them).

9. What happens to my money if something happens to you?

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Your advisor should be able to answer this question in enough detail that you’re confident there’s an exit plan if they retire, leaves the firm for another job, or is otherwise unable to continue serving you. You should know how your financial affairs will be handled and who would handle them.

10. Is there anything I forgot to ask you?

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Finally, ending an interview with this question can be very revealing. Even if you think the answer is no, it can demonstrate a level of engagement with a potential financial advisor. Still, there’s a chance you missed something during your conversation, and this is a good time for the advisor to bring up anything important.

The bottom line about how to pick a financial advisor

How to pick a financial advisor

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Asking the right questions and listening carefully to the answers you receive can especially help you decide if there’s a good match. If you’re part of a couple, both partners should feel comfortable with the financial advisor. Philosophy, fees, qualifications, and more all come into play.

Remember, choosing a retirement advisor is not an easy task. You may have to interview several candidates before you find the right one.

Working with qualified advisors like the advisors at Teton Wealth Group can really help you get to where you want to be in your retirement. 

Every family working toward retirement needs an Ascent Plan. Click here for a complimentary Ascent Plan from Teton Wealth Group today. Or take their retirement mistakes quiz to see where you stand.

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