Questions To Ask a Financial Advisor

“Test everything; hold fast what is good.” - 1 Thessalonians 5:21.

In that verse, the Apostle Paul teaches that we should practice discernment in all things and we submit that includes financial advice. What questions should you ask a potential financial advisor?

We occasionally get this question on the Faith and Finance radio program when folks are looking for a financial advisor: “How can I choose someone I can trust and who’s a good fit for my financial situation?”

Fortunately, our parent organization, Kingdom Advisors, has more than 1,600 Certified Kingdom Advisor professionals, and we always encourage you to connect with one for whatever area of your finances you’d like help with. Kingdom Advisors offers comprehensive lists of questions for each financial discipline, whether you’re interviewing an investment professional, a financial planner, a CPA, an estate attorney, or an insurance professional. By the way, we always advise that you interview two or three. You’ll also find an important list of questions that you should ask any financial professional you interview. Those general questions are neatly arranged in groups for your convenience. The first thing you might want to find out is how long your candidate advisor has been on the job. So you would ask:

• How long have you been in practice?
• What professional certifications do you hold?
• Can you tell me about your practice?
• What are your areas of specialty?

Next, you’ll want to determine what and how services will be given. It’s important to understand these things to form reasonable expectations. You should ask:

• Will you or your associate work with me?
• How long will it take for you to do my work?
• What are your client response times and client communication methods?
• In how timely a manner is your work generally done?

Referrals are extremely important, and they should be current or recent contacts. Ask your candidate advisor:

• Do you have clients with situations similar to mine who might be willing to speak with me about your services?
• And do you have other professionals who might be willing to speak with me as well?

This brings us to a set of questions that you may be uncomfortable with, but you need to ask them anyway:

• Are you in good standing with your local professional associations?
• What organizations have regulative authority over you?
• Have you ever been cited by a professional governing body for disciplinary reasons?
• Have you ever had any complaints filed against you with any organizations that regulate you?
• Have you ever been publicly disciplined for any unlawful or unethical actions in your career?
• Have you ever filed for bankruptcy?

All that’s left now is compensation. What and how does your candidate expect to be paid? So ask:

• Are you compensated by fees, commissions, or both?
• Do you charge for initial consultations?
• How are your fees calculated?
• Are fee arrangements set in writing beforehand?
• (If they charge hourly) What are your hourly rates? What are the hourly rates of your associates?
• Do you charge for every phone conversation and/or meeting?
• What do you project my costs would be for your services?
• What can I do to keep your fees to a minimum?

We think that’s a fairly comprehensive listing of questions to ask any financial advisor you might be considering. Again, always interview two or three and choose one you feel comfortable with, who is skilled in their field, and just as important, one who shares your Christian values. You can also __listen __to a related podcast on this topic.