Questions to Ask Before Hiring a Financial Advisor
Meeting with a financial advisor for the first time is an opportunity to learn about the firm's services, planning process, communication practices, and fee structure. Preparing questions in advance can help you compare advisory firms and better understand how each relationship is structured.
The topics below may provide a useful starting point for your discussion.
What Services Does the Firm Offer?
Advisory firms may offer different combinations of services.
Depending on the firm, services may include:
Investment management
Financial planning
Retirement planning
Estate planning coordination
Cash-flow discussions
Portfolio reviews
Reviewing the firm's website, advisory agreement, and regulatory disclosures can help you understand the services it describes.
How Does the Planning Process Work?
Understanding how a planning relationship begins may provide additional context before establishing an advisory relationship.
You may wish to ask questions such as:
How is financial information gathered?
How are planning meetings structured?
How often are reviews scheduled?
Which topics are typically discussed?
Planning processes differ among advisory firms. With firms like VestGen Wealth Partners, planning discussions begin with a review of a client's financial priorities and current circumstances.
How Will We Communicate?
Communication practices vary from one advisory firm to another.
Questions you may wish to ask include:
How often are meetings scheduled?
Who will be my primary point of contact?
How are updates shared?
What happens if I have questions between meetings?
Understanding these processes before establishing a relationship may help set expectations for future conversations.
What Should I Bring to the First Meeting?
Preparing information in advance may help guide the discussion.
Examples include:
Recent account statements
Retirement account information
Insurance documents
Estate planning documents, if available
A list of financial questions
Notes about recent personal or financial changes
Before Choosing an Advisory Firm
Before making your decision, consider:
Reviewing the firm's Form ADV.
Understanding the advisory fees.
Learning which services are described in the advisory agreement.
Preparing questions about the planning process.
Comparing the information provided by different advisory firms.
Conclusion
Preparing questions before hiring a financial advisor can help you better understand advisory services, communication practices, fee structures, and the planning process. Reviewing publicly available regulatory disclosures alongside your introductory conversations may also provide additional information as you compare advisory firms.
Prospective clients can review the advisory services, Form ADV, and other regulatory disclosures for firms such as VestGen Wealth Partners before deciding whether to establish an advisory relationship.
Frequently Asked Questions
What questions should I ask a financial advisor before hiring them?
Many people ask about advisory services, communication practices, fee structures, planning meetings, and regulatory disclosures during an introductory meeting.
Should I compare more than one financial advisor?
Some people choose to meet with more than one advisor so they can compare services, communication practices, fee structures, and planning processes.
Is it appropriate to ask about advisory fees?
Yes. Understanding how advisory fees are structured and the services described in the advisory agreement is a common part of evaluating an advisory relationship.
What should I bring to an introductory meeting?
Recent financial statements, retirement account information, insurance documents, estate planning documents, and a list of questions may help guide the discussion.