How to interview a financial advisor, 10 questions that matter

Meeting with a financial advisor for the first time feels like a job interview, except you're the one hiring. Most advisors are good at presenting their services. Fewer are prepared for direct, specific questions about how they're compensated, how they make decisions, and what happens when things go wrong.

These 10 questions won't guarantee you hire the right person, but they'll surface information that a polished pitch meeting usually obscures.

1. "Are you a fiduciary at all times?"

This is the foundational question. A fiduciary is legally required to act in your best interest. A broker operating under the suitability standard is only required to recommend products "suitable" for you, a materially lower bar.

Listen for: "Yes, I am a fiduciary at all times for all advice I provide." Watch out for hedged answers: "We operate in a fiduciary capacity when providing investment advice", which may mean they switch hats when selling insurance or annuities.

2. "How are you compensated, in detail?"

Ask for the complete picture: advisory fee percentage, any flat fees, any commissions from product sales, any revenue sharing with fund companies. Get it in writing.

A fee-only advisor receives no commissions. A fee-based advisor may receive both fees and commissions. Neither is automatically right or wrong, but you should understand the incentives clearly.

3. "What will I actually pay in dollars per year at my asset level?"

Ask them to calculate the dollar amount. If your investable assets are $400,000 and they charge 1% AUM, the answer is $4,000/year. If they hedge or give you the percentage without the dollar figure, that's information.

4. "What custodian holds my assets, and how do I access my accounts directly?"

Your money should be held at an independent custodian (Fidelity Institutional, Schwab Advisor Services, Pershing), not at the advisor's firm. You should be able to log in directly to see your accounts at any time, independent of the advisor. This is a basic fraud protection.

5. "What is your investment philosophy, and how does it apply to someone in my situation?"

Look for a coherent, consistent answer, not a list of buzzwords. A good advisor can explain why they believe what they believe and how it translates to portfolio construction decisions. "We believe in diversified, low-cost index funds and rebalancing to target allocation" is a real answer. "We use a proprietary quantitative approach to identify alpha opportunities" requires follow-up questions.

6. "What happens to my accounts if your firm closes or you retire?"

Business continuity is a real consideration, especially with solo practitioners. Does the advisor have a succession plan? Who manages clients if the advisor is incapacitated? Your assets at an independent custodian are safe, but your advisory relationship needs continuity planning.

7. "Can I see your ADV Part 2?"

The Form ADV Part 2 is the document every registered investment advisor must file and deliver to clients. It discloses fees, conflicts of interest, disciplinary history, and business practices. Asking for it signals that you know what it is. A disciplinary history isn't automatically disqualifying, but it's worth reading.

8. "What types of clients do you work with best, and am I a fit?"

Good advisors have a clear idea of who they serve well. An advisor who works primarily with business owners nearing exit may not be the right fit for a 35-year-old accumulating in a W-2 job. Asking directly what their ideal client looks like, and honestly evaluating whether you match, saves both of you time.

9. "How do you communicate with clients, and how often?"

Some advisors hold quarterly reviews. Others meet annually and communicate via email. Some use a client portal. Find out whether the communication style and frequency matches what you actually want. An advisor who meets quarterly may be more than you need. An advisor who only reaches out during market crises may be less.

10. "What should I expect in the first 90 days?"

Good onboarding includes a full financial data gathering, a written financial plan or investment policy statement, and explicit agreement on goals and strategy. If the answer is "we'll open the accounts and start investing," ask what the longer-term planning process looks like.

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You don't have to ask all 10 in the first meeting. But having clear answers to questions 1, 2, 3, and 7 before you sign anything is the minimum bar for a well-informed decision.