Prepared by Tacy Roby, CFP®, Tribridge Partners Financial
Are you looking for a financial advisor? You can be a smart investor by asking these ten questions of a prospective financial advisor. You’ll quickly be able to determine if they are the right “fit” for you and your needs. These questions are from the Certified Financial Planner (CFP®) Board of Standards.
Ask your prospective advisor these questions:
- WHAT ARE YOUR QUALIFICATIONS AND CREDENTIALS?
Ask about the credentials your advisor holds and learn how they stay up-to-date with current changes and developments in the financial planning field.
- WHAT SERVICES DO YOU OFFER?
Credentials, licenses, and background are all factors that determine the services an advisor can offer. Ask your advisor what investments, services, and advice they can offer that match your needs.
- WILL YOU HAVE A FIDUCIARY DUTY TO ME?
You should ask the financial professional to commit to you, in writing, that she/he will have a fiduciary duty to you. A fiduciary is someone who puts your interests ahead of their own. This is important because there may be situations where the interests of the financial professional conflict with your interests. A fiduciary has an obligation to disclose the conflicts of interest and continue to put your interests first. That may seem like common sense, but not all financial professionals have a fiduciary obligation.
One benefit of working with a CFP® professional is that all CFP® professionals, as part of their certification, commit to CFP Board to act as a fiduciary at all times when providing financial advice to a client. CFP Board is not a regulator, and CFP Board doesn’t guarantee a CFP® professional’s services.
- WHAT IS YOUR APPROACH TO FINANCIAL PLANNING?
Ask the advisor if they will create a comprehensive financial plan for you. Also, ask if he or she will implement the plan and recommendations and/or work with other professionals to do so. In some instances, other professionals will implement the recommendations, or you may want to implement them yourself.
- WHAT TYPES OF CLIENTS DO YOU TYPICALLY WORK WITH?
Some financial advisors prefer to work with clients whose assets fall within a particular range, so it’s essential to make sure the advisor is a good fit for your individual financial situation.
If you have any unique circumstances, make sure to mention them to the advisor so that you can decide if the advisor is a good fit for your circumstances. A CFP® professional may self-disclose in their profile if they specialize in a certain area, such as working with small business owners or women.
- WILL YOU BE THE ONLY ADVISOR WORKING WITH ME?
Some financial advisors work with clients directly, and other financial advisors have a team of people who work with them to serve clients. Ask who will be working with you, and ask whether the advisor works with professionals outside his/her own practice. If yes, ask for a list of their names, roles, and qualifications.
- HOW WILL I PAY FOR YOUR SERVICES?
You can pay for financial advice in several ways. You may be charged a fee based on a percentage of the investable assets the financial advisor manages on your behalf. You may pay an hourly rate or a fixed fee for the service. You may also be able to pay a monthly or quarterly retainer fee (also known as a subscription fee) for the services of a CFP® professional on an ongoing basis. Some CFP® professionals may earn a commission on a transaction. Typically, a commission is compensation for buying or selling a financial asset, such as a stock. A CFP® professional can disclose that information to you along with the fee structure. Your advisor should clarify how they expect to be paid for services rendered.
- HOW MUCH DO YOU TYPICALLY CHARGE?
How much you pay will depend on your needs and circumstances. The advisor should provide you with an estimate of possible charges based on the services that will be utilized and any products that will be used to implement your plan.
- DO OTHERS STAND TO GAIN FROM THE FINANCIAL ADVICE YOU GIVE ME?
Ask the advisor to describe any potential conflicts of interest. For example, advisors who sell insurance policies, securities or mutual funds may have a business relationship with the companies that provide these products. You get to decide whether to accept the conflict or work with someone else.
Whomever you choose as your financial professional, including a CFP® professional, you should be sure to ask for—and get—a written engagement that requires them to place your interests first when providing financial advice, even when they have a conflict of interest.
- HAVE YOU EVER BEEN PUBLICLY DISCIPLINED FOR ANY UNLAWFUL OR UNETHICAL ACTIONS IN YOUR CAREER?
Ask your advisor if he/she has ever been publicly disciplined by any organization that oversees his or her conduct. Information about financial advisors who are subject to Financial Industry Regulatory Authority or Securities and Exchange Commission oversight is available through FINRA’s BrokerCheck and the SEC’s Investment Adviser Public Disclosure databases. Information is also available on the websites for the state securities or insurance regulator in the states in which a CFP® professional is licensed for securities or insurance.
As always, feel free to reach out to me with any questions you may have at tacy.roby@tribridgepartners.com.
Source: Certified Financial Planner (CFP®) Board of Standards, “10 Questions to Ask Your Financial Advisor”, accessed 05/11/2025. https://www.letsmakeaplan.org/choosing-a-planner/10-questions-to-ask-your-financial-advisor.
