{"id":4392,"date":"2023-08-23T15:42:38","date_gmt":"2023-08-23T22:42:38","guid":{"rendered":"https:\/\/www.soundcu.com\/?p=4392"},"modified":"2025-05-15T18:26:51","modified_gmt":"2025-05-16T01:26:51","slug":"the-most-essential-questions-to-ask-a-financial-planner-before-hiring-them","status":"publish","type":"post","link":"https:\/\/www.soundcu.com\/blog\/the-most-essential-questions-to-ask-a-financial-planner-before-hiring-them\/","title":{"rendered":"The Most Essential Questions to Ask a Financial Planner Before Hiring Them"},"content":{"rendered":"
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The Most Essential Questions to Ask a Financial Planner Before Hiring Them<\/h2>\n

So, you\u2019ve decided to hire a financial advisor. First of all, congrats! We know that people who get professional money guidance generally make better decisions<\/a> about their money on a host of factors. They\u2019re also more likely to save for emergencies and less likely to struggle with things like credit card debt.\u00a0 But choosing the right person from the start isn\u2019t easy.\u00a0 Your goal should be to find someone you can work with long-term, maybe even lifelong. That\u2019s why we recommend being picky about your choice.<\/p>\n

But where do you even start? Firstly, decide exactly what kind of professional you want to work with. From there, you might want to start by gathering recommendations from friends, family and colleagues \u2014 there is often nothing better than having a trusted friend recommend a trusted professional. <\/p>\n

You can also use search tools at PlannerSearch.org<\/a> and letsmakeaplan.org<\/a> to find a Certified Financial Planner (CFP), or you can try NAPFA.org<\/a> to find a fee-only fiduciary advisor. Once you have a short list of prospects, you should set up meetings with each person and get a feel for how your personalities may gel. Note: Your initial consultation should always<\/em> be free.<\/p>\n

Once you\u2019re meeting with one another, here\u2019s a look at the top questions you need to be asking.<\/p>\n

Question: Are You a Fiduciary?<\/strong><\/h2>\n

It\u2019s important to know that some advisors and brokers offer investment advice that isn\u2019t always in their client\u2019s best interest, explains personal finance expert Lynnette Khalfani-Cox, author of \u201cZero Debt.\u201d For example, they might recommend an investment that pays them a higher-than-necessary commission, even when there is a comparable investment option that would cost their client less. Advisors that abide by the \u201cfiduciary standard,\u201d on the other hand, must always put their client\u2019s interest before their own. With a fiduciary advisor, you know there are never any conflicts of interest when it comes to the advice you\u2019re getting.<\/p>\n

Note: You should also check up on a prospective advisor\u2019s disciplinary record with the CFP Board or by using the broker check tool<\/a> from FINRA, says Carina Diamond, a certified financial planner in Akron, Ohio, and a CFP Board Ambassador. You can also visit CFPBoard.net<\/a> to see if your advisor has been verified by the CFP Board by typing in their name, company and where they practice.<\/p>\n

Question: How Do You Get Paid?<\/strong><\/h2>\n

Paying your financial advisor isn\u2019t as simple as paying your barista. And while you may not be comfortable with \u201cHow do you get paid?\u201d as the first question out of your mouth, it should come early on in the process. You need to know how your professional gets compensated. It happens in one of four ways:<\/p>\n