Short answer: ask how the advisor is paid, whether they are a fiduciary at all times and in writing, what you will pay in dollars, and exactly what you get. Clear, direct answers are the point; hesitation is the answer.
How they are paid
- 1. Are you fee-only? Is every dollar you earn paid by clients, with no commissions, 12b-1 fees, or revenue sharing?
- 2. What will I pay per year, in dollars? Include advisory fees and fund expenses.
- 3. Does your pay change based on what you recommend? For example, if I buy an annuity or move money to you.
Their duty to you
- 4. Are you a fiduciary at all times, for all of my accounts, and will you put that in writing?
- 5. May I see your Form ADV? It is public on the SEC's adviser search and lists fees, conflicts, and any disciplinary history.
- 6. Where is my money held? It should sit at an independent custodian such as Schwab, in your name.
What you get
- 7. What is included — taxes, Social Security, estate, insurance, or only investments?
- 8. How often will we meet, and how fast do you answer questions?
- 9. Who will I actually work with? The person you meet or a junior associate?
- 10. What credentials do you hold? The CFP® mark requires coursework, an exam, experience, and ethics standards.
Fit
- 11. Who are your typical clients? You want someone who works with people in your situation every week.
- 12. What is your minimum, and what happens if I want to leave?
Answers that should give you pause
- "I'm a fiduciary when I give advice" — that can mean not when selling products.
- Fees quoted only as a percentage, or not at all.
- Pressure to move everything before there is a written plan.
We are glad to answer every one of these in our first call — and you can read more in How to Choose a Financial Advisor or see our fees.
Schedule a complimentary consultation with Ben Loughery.
This article is for educational purposes only and is not individualized tax, legal, or investment advice. Examples are hypothetical illustrations, not actual clients, and do not guarantee any result. Lock Wealth Management is a registered investment adviser; registration does not imply a particular level of skill or training.
Frequently asked questions
- What is the most important question to ask a financial advisor?
- How they are paid. A fee-only advisor is paid only by clients; a fee-based or commission advisor can earn money from the products they recommend.
- How do I check a financial advisor's background?
- Search their name or firm on the SEC's Investment Adviser Public Disclosure site and FINRA BrokerCheck, and confirm a CFP® mark on the CFP Board's website.
- What is Form ADV?
- A public disclosure registered investment advisers file with regulators. Part 2 describes services, fees, conflicts of interest, and disciplinary history in plain language.
- Should I interview more than one advisor?
- Yes. Two or three conversations make it much easier to tell a clear answer from a vague one.
- Does Lock Wealth Management answer these questions?
- Yes. We are fee-only and fiduciary, our fees are published in dollars, and our Form ADV is public on the SEC's adviser search.
