5 Questions to Ask Your Financial Advisor

5 Questions to Ask Your Financial Advisor

Financial Advisors

Financial Advisors are your savior if you are looking to diversify your investments properly. However, many investors don’t consider checking in with financial experts, which can become a real problem. Understanding various aspects is necessary before hiring a financial advisor. 

Some investors especially newbies don’t have good knowledge of how the investment world works. That’s why it’s better to hire a financial advisor to assist you with your financial goals. 

But you don’t need to be a financially savvy person to discuss your portfolio. All you require is to know what to ask from your financial advisor. So here, we are going to pick 5 such frequently asked questions on finance, and in general that you must ask your investment advisor.

What to ask your Financial Advisor?

Let’s get prepared to talk to a financial advisor by addressing these queries:

Question 1: What services do you provide to your clients? 

It is very important to know about the services a financial advisor is offering before hiring them. Even if a financial advisor has a lot of credentials to his or her name, it doesn’t imply that they are providing the service you are looking for. 

Are you looking for a financial advisor for getting some investment products? Do you want someone who can assist you with your financial planning? Are you looking for a person who can help you with your tax planning? Or do you wish to manage your money properly and also want financial advice? 

It all comes down to the type of service you are looking for from your financial advisor. So better ask them beforehand about the services they are offering to their clients. 

Question 2: How much do you charge for your services? 

The next important question is to know the fees they are charging for offering their services. Make sure you have a proper understanding of all the costs involved in using any services. 

Ask and be very clear and direct about their charges. Thus, asking questions related to the fee is a good way to save you from any future surprises about an additional cost.

Question 3: With whom I will be working? 

You think that you just found a star advisor for yourself and go to them. While in reality, you are assigned a junior financial advisor at a later stage. 

Thus, to save yourself from such sudden surprises, you want to ask this question beforehand. Moreover, you should also try to meet everyone on the team, to match your requirements. 

Question 4: What is your investment philosophy? 

Now coming to one of the main questions you must ask your financial advisor is that what is the approach he or she will follow for your investment. When you hire a financial advisor you should be comfortable with their investment approach. 

Does your financial advisor follow an active, passive, or mixed strategy? Active strategies offer you the opportunity to outperform the market. Passive strategy on the other hand is the cheapest option that can generate the best long-term returns. 

What type of investment does your financial advisor suggest? Should you just stick with stocks and bonds? Or should you look for alternative investments too? Investing in alternative investments is a great way to diversify your financial portfolio but at the same time, it is quite risky and expensive. 

Question 5: Do you have clients like me who can offer references? 

When you go and search for a financial advisor for yourself, think of it as a job interview. Rather than listening to the positive references from your advisor, you should probably be well aware of experiences from a similar client like you. 

Research and find out a suitable financial advisor for yourself. If you are not impressed by the references from other clients then go for others. Remember that, you can’t make a decision so lightly, where your money is involved. 


So, these are the crucial questions to ask your financial advisor. At the end of the day, think that you are not hiring a person who can only fulfill your financial criteria; rather you want to hire someone with whom you can feel a personal connection. 

If you don’t feel comfortable with your financial advisor or if you simply don’t like them at all, then you are less likely to meet with them. As a result, communication can also become a major issue over time. 

To conclude, don’t wish for a money wizard who can tell you the way to generate quick higher returns than other financial advisors. Money wizard is a myth in itself. Wealth only comes with a diligent investment strategy that fulfills your goals and risk tolerance. No matter what type of investor you are, the right methodology can reap bigger benefits.

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