12 Questions to Ask a Financial Advisor in 2026

Choosing the right financial advisor is one of the most important financial decisions you will make. They will help you craft a financial plan that helps you achieve your goals, and your advisor will be the person you trust with your financial future. As such, it’s important to research your advisor and make sure they’re the right fit for you.

As a fiduciary wealth management firm, we at Wealth Enhancement believe transparency starts with open conversation. Whether this is your first meeting with your advisor or an annual review, the right questions will help you evaluate fit, competence, and trustworthiness. 

Here are 12 essential questions to ask, plus what to look for and potential red flags. 

1. Are you a fiduciary?

Your advisor should be held to a fiduciary standard, which means they are legally obligated to look out for your best interests. If they are not held to a fiduciary standard, they are held to the sustainability standard. The sustainability standard means your advisor only needs to provide options that are suitable for your situation, which is a lower threshold than the best-interest standard. Your advisor may provide an option that is the best for them, such as a product that earns them a larger commission or is an easier transaction to close, instead of what is best for you. At Wealth Enhancement, advisors operate as fiduciaries and are held to the fiduciary standard.

2. What are your credentials and professional experience?

Financial advisors have a few key designations: CFP® (CERTIFIED FINANCIAL PLANNER®), CFA (Chartered Financial Analyst), CPA (Certified Public Accountant), and ChFC (Chartered Financial Consultant). These designations mean your advisor has received recognition for extra education or extra requirements they must follow. To check if your advisor is a CFP®, you can check with the CFP Board’s verification tool. Ask your advisor about their years of experience and specific areas of specialization. 

3. Have you ever received regulatory complaints or disciplinary actions?

While this may be uncomfortable to ask, it’s important to know if the advisor you’re working with has ever been involved in any unsavory practices. All registered advisors have a public record. You can check FINRA BrokerCheck or the SEC’s IAPD database to see your potential advisor’s record, even before your first meeting. While checking your advisor’s background, check for customer complaints, arbitrations, regulatory actions, or employment terminations. 

4. How are you compensated, and what will I pay?

There are three main compensation models:

• Fee-only: In a fee-only model, advisors are compensated solely by client fees. Their client fees may be a flat fee, an hourly rate, or a percentage of assets under management. While this may mean more out-of-pocket costs for you, it also means your advisor is less likely to recommend products based on their own gain.
• Fee-based: In a fee-based model, advisors will charge a fee, but they can also earn commission pay on certain products. Often, these advisors are held to a fiduciary standard and must recommend the best products to you regardless of commission.
• Commission-based: In a commission-based model, advisors receive compensation based on the specific financial products they sell to you. This can lead to conflicts of interest, especially if they are held to only a sustainability model.

Ask about the all-in cost and different fees, including advisory fees, fund expense ratios, transaction fees, and custodian fees. Hidden fees can erode returns over time, so transparency is incredibly important. While asking your advisory about fees, listen for a clear, written fee schedule and willingness to explain every cost layer.

5. What services do you provide beyond investment management?

Investment-only advisors focus solely on your broker profile and investments. A comprehensive wealth manager will focus on investments, as well as general financial planning, estate planning, tax strategies, retirement income planning, insurance, and risk management. If you are looking for comprehensive services, ask your advisor about their experience and strategies beyond your brokerage portfolio.

6. What is your investment philosophy?

Ask your advisor if they follow active management, passive/index investing, or a blended approach. Discuss how they handle market downturns and volatility. Your advisor’s philosophy should align with your risk tolerance and long-term goals. Listen for a clear and consistent strategy rather than chasing trends or timing the market.

7. Who is your typical client?

Ask about the type of clients they serve most often. Common types of clients include pre-retirees, business owners, high-net-worth individuals, and young professionals. Ask about account minimums or minimum asset requirements. You want an advisor experienced with people in situations similar to yours. The advisor will already be familiar with the financial landscape and strategies that may benefit you.

8. How will we communicate, and how often?

While discussing communication, ask about meeting frequency and communication channels. Your advisor may want to meet quarterly or annually, along with ad-hoc check-ins. Ask about ways your advisor can meet with you and how they will communicate outside of meetings. It is important to know whether they prefer in-person meetings or video calls, and if they will reach out via phone, email, or a client portal.

Make sure your advisor has a proactive communication style where they are actively reaching out to you—not just waiting for a phone call.

9. How do you approach retirement income planning?

Ask your advisor how they create a sustainable withdrawal strategy, also called the decumulation phase. Discuss:

• Social Security timing
• Required Minimum Distributions (RMDs)
• Roth conversions
• Tax-bracket management 

Retirement planning is about creating a reliable income stream, not just growing assets. If you’re looking for a long-term advisor, retirement income planning will be crucial to your financial well-being. 

10. Where will my money be held, and what will happen if something happens to you?

If your money is held in a third-party custodian, such as Schwab or Fidelity, your assets are held separately from the advisor’s business. This often adds another layer of protection to your assets in case something happens to your advisor or their business. 

In case your advisor retires, leaves, or becomes unable to work, ask about the firm’s succession plan. Financial planning is a long-term arrangement, and you want to ensure the continuous care of your assets and wealth management. 

11. Will you coordinate with my other professionals?

Ask whether they will coordinate with other specialists, such as a CPA, an estate agent, or an insurance agent. Comprehensive financial planning touches on all aspects of your financial life, and integration with other professionals avoids gaps and conflicting advice. At Wealth Enhancement, our team-based model includes in-house tax specialists and estate planning professionals. 

12. Can you walk me through a sample financial plan?

Ask to see an example of a plan they have created for a client in a similar situation. While certain details will be omitted for privacy, this will reveal the depth, clarity, and comprehensiveness of their planning process. In their mock-up plan, look for:

• Goals-based planning 
• Scenario analysis
• Clear action items
• Regular review cadence

The example plan will give you clear insight into how a financial plan may look and whether their style of financial planning is right for you.

How to prepare for your first meeting with a financial advisor

Before walking into your first meeting, there are several steps you should take to make the experience as smooth as possible. Be sure to:

• Gather recent statements. Include your investment accounts, 401(k), pensions, and insurance policies.
• Write down your financial goals and concerns. Have a reference point for your advisor to help get on the same page.
• Bring a list of questions. Use the questions above or come up with your own to ensure the advisor is the right person for you.
• Be ready to discuss your risk tolerance and timeline. While talking about risk is anxiety-inducing, discussing how you want to handle risk in your financial plan is essential.

Red flags to watch for

While meeting with your advisor, pay attention to any potential red flags. Red flags include, but are not limited to:

• Guarantees of specific returns.
• Pressure to make immediate decisions.
• Reluctance to explain fees in writing.
• No fiduciary commitment.
• Inability to provide references or verifiable credentials.
• Disciplinary history on BrokerCheck or IAPD. 

If you notice any of these red flags, proceed with caution. 

Take the next step

Asking the right questions empowers you to find the right advisor. Schedule a no-cost meeting with an advisor at Wealth Enhancement to see how our team-based approach to wealth management can work for you. 

Frequently asked questions

What are the most important questions to ask a financial advisor?

While there are many good questions to ask a financial advisor, the most important questions to ask include their fiduciary status, fees, credentials, and investment philosophy. 

How many questions should I ask a financial advisor in the first meeting?

Bringing at least 8-10 questions can help you get the best sense of an advisor, but focus on the questions most relevant to your situation. 

What should I look for in a financial advisor?

Make sure your financial advisor has fiduciary status, relevant credentials, transparent fee structure, comprehensive services, and a communication style that fits your preferences. 

How often should I review my financial plan with my advisor?

Review at least annually, with quarterly check-ins, and whenever a major life event occurs (marriage, retirement, inheritance, job change, etc.). 

This article was originally published on Sept. 23, 2018 in the Brainerd Dispatch and has been updated.

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.

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