Top 7 Questions to Ask Before Hiring a Financial Advisor

7 Must-Ask Questions Before Choosing a Financial Advisor

When it comes to your financial future, who you trust matters. Hiring the right financial advisor can be the difference between building long-term wealth and making costly mistakes. But how do you know who’s right for you? Whether you're looking to plan for retirement, grow your investments, or get your business finances in order, asking the right questions upfront can save you from future regret.

At Theogony Financial, clients are empowered with clear strategies, personalized guidance, and expert insight to navigate their unique financial journeys. With the rising need for financial advising services, selecting an advisor who aligns with your goals and values is more important than ever. If you’re searching for personalized financial planning, investment guidance, or long-term wealth strategies, these are the seven crucial questions you should ask before committing.

1. Are You a Fiduciary?

This should be the very first question on your list. A fiduciary is legally and ethically required to act in your best interest.

Why it matters:
Many financial advisors are only held to a “suitability standard,” meaning they can recommend good products—but not necessarily the best—for your situation. Fiduciaries, on the other hand, must prioritize your financial well-being.

Tip:
Ask for written confirmation that the advisor adheres to a fiduciary standard 100% of the time.

2. How Do You Get Paid?

Compensation models can vary greatly, and they affect the kind of advice you receive. Advisors may be:

• Fee-only: Paid directly by clients (flat fees, hourly, or a percentage of assets under management).

• Commission-based: Earn money from financial products they sell (insurance, mutual funds, etc.).

• Fee-based: A hybrid of both models.

Why it matters:
Fee-only advisors typically have fewer conflicts of interest. If someone earns commissions, ask how they ensure unbiased advice.

3. What Are Your Credentials and Experience?

Not all financial advisors hold the same certifications or have the same level of expertise. Look for credentials like:

• CFP® (Certified Financial Planner)

• CFA (Chartered Financial Analyst)

• CPA (Certified Public Accountant)

Why it matters:
These designations require rigorous exams, ongoing education, and adherence to ethical standards. Additionally, understanding how long an advisor has been practicing—and in what capacities—can give you insight into their strengths.

4. What Services Do You Offer?

Financial advisors vary in scope. Some focus solely on investments, while others provide comprehensive planning.

Ask about:

• Retirement planning

• Tax optimization

• Estate planning

• Budgeting and debt management

• Business advising

• Risk management and insurance

Why it matters:
The more well-rounded their services, the more they can support your entire financial life. A good advisor acts like a financial quarterback, coordinating every aspect of your plan.

5. Who Is Your Ideal Client?

It’s important to know if an advisor regularly works with clients like you. Whether you’re a young professional, business owner, or nearing retirement, you want someone experienced with your unique financial challenges.

Examples of niches:

• High-net-worth individuals

• Small business owners

• Retirees or pre-retirees

• Families with special needs dependents

• Millennials looking to build wealth

Why it matters:
The more familiar they are with people in your situation, the more relevant their guidance will be.

6. How Will We Communicate and How Often?

You want an advisor who stays proactive, not one you only hear from once a year. Ask about:

• Meeting frequency (quarterly, biannually, annually)

• Communication channels (Zoom, phone, email, in-person)

• Availability for urgent questions

Why it matters:
Regular communication builds trust and helps you stay on track. It also ensures you're informed during key financial decision points or life changes.

7. Can You Show Me a Sample Financial Plan?

A reputable advisor should be able to share a sample (sanitized for privacy) so you can see the level of detail and personalization in their work.

What to look for:

• Clear goals and timelines

• Asset allocation strategy

• Retirement income projections

• Tax planning strategies

• Insurance analysis

Why it matters:
You’ll want to ensure their planning style aligns with how you like to make decisions. It also gives you insight into the depth of their analysis.

Bonus Tips: Red Flags to Watch Out For

Even with the right questions, it's good to be cautious. Be on alert for:

• Vague or evasive answers

• Pressure to purchase products

• Overly optimistic returns

• Lack of transparency in fees

• No clear process or follow-up plan

Conclusion: Choose Wisely—Your Future Depends On It

Selecting a financial advisor is a major decision that directly impacts your life, goals, and long-term peace of mind. These questions are not just conversation starters—they're filters to help you identify trustworthy, knowledgeable professionals who prioritize your best interests.

If you're ready to take control of your financial future with clarity and confidence, start by asking the right questions—and consider working with seasoned experts like those at Theogony Financial.

What’s the one question you wish you had asked before working with a financial advisor? Share your thoughts in the comments below!