• FINRA is the financial industry’s regulatory body, and you can check prospective advisors’ backgrounds and industry experience using BrokerCheck at the FINRA website. But you may still want to ask in person, “Do you have anything in your regulatory record that I should know about?” 
• What other careers did your prospect have before becoming a financial advisor? Learning about their experiences can provide a more complete picture of the advisor. Years of industry experience also matters – we suggest you look for someone with 10 or more years of experience in the industry or someone on a team with an advisor who has at least 10 years of experience. 
• The FINRA BrokerCheck will display an advisor’s registrations but not their credentials, licenses, or certifications. There are many industry designations available to advisors, so it’s helpful to ask them about their registrations and certifications to determine if they’re qualified to provide the types of services you’re looking for. For instance, if you’re in need of retirement planning services, you may want to find an advisor who has a Retirement Income Certified Professional® (RICP®) designation from The American College of Financial Services. 

Does your prospective advisor work on commission? Strictly fee-based? A combination of the two? Not all advisors and companies charge the same commissions or fees for the same services. Be sure to compare costs for the specific types of investments/services you’re looking for. If your advisor is fee-based only, ask if the initial consultation is free. Initial consultations can take up to two hours and – we believe – should be free of charge. 


Who will provide the various services you need? Will your prospective advisor meet with you as often as you like? Do you want to have quarterly, semi-annual, or annual portfolio reviews in addition to occasional phone discussions? Is there more than one assistant? Do they work on a team of advisors? Who covers for the advisor when she/he is out of the office? These are all good questions to ask upfront so that you feel confident entering into a relationship with an advisor. 


To fully understand your financial picture, goals, and risk tolerances, your prospective advisor should know a lot about you. A good advisor will want to assess if your current investments match your risk tolerances. When interviewing a prospective advisor, you should expect them to ask you some personal questions – this is a good thing and will benefit both of you in the long-run.


Established advisors will want to assess whether or not you fit into their practice, just like you will assess whether or not they fit your lifestyle and financial vision. Some advisors may work with niche client segments, such as women investors, physicians, or businesses in certain industries. It’s good to be upfront about who your prospective advisor may or may not work with so you can both evaluate if you’re a good fit for one another. 


Advisors can have distinctly different investment styles and philosophies – some focus on risk tolerance, others take a tax-aware approach, and still others utilize ESG (Environmental, Social, Governance) strategies. Check the advisor’s website or ask about their investment philosophy when you meet with them to make sure your styles are a good match.


Some advisors will draft an investment plan for you that will assess where you are in relation to working toward your financial goals; however, not all plans are the same. If your prospective advisor offers an investment plan, ask to see a sample. Looking at a sample plan will help you compare the level of analysis you will receive.  


This question is particularly important when interviewing advisors who don’t work at large brokerage firms. Ask independent consultants if they use a third-party custodian or clearing firm to hold your assets. You will want to feel good about the company or firm that holds your account. 


In addition to stocks, bonds, mutual funds, and annuities, some advisors and companies offer a wide range of products and services, including alternative investments, liability management, and long-term care/other insurance products. If you think you may need any of these products and services in the future, this may plan an important role in your decision as you choose your financial advisor.