5 Questions You Need to Ask Your Financial Advisor

November 3, 2020 | Joyce Ibrahim


We all have different relationships with money, from how we use it, why we need it, and what possibilities it offers us. No two financial situations are the same, and with the variety of needs in wealth management, it only makes sense that no two financial advisors can be the same, either. 

After considering your personal priorities and goals and deciding to plan your finances accordingly, your next challenge is to find a professional and experienced financial advisor that understands the individuality of your situation.  

To help you better understand whether an expert’s services are well-aligned with your financial situation, here are the 5 most important questions to ask a financial advisor before you hire them.  


  1. How are you compensated?  

Some financial advisors charge by the hour or on a monthly basis, others charge a flat fee for the specific services they’re performing. Some advisors also charge a percentage of the assets they’re managing for you.  

Consider that the first step to planning your finances is understanding your costs, including your advisor’s fees. This will help you determine whether a financial advisor’s fees and the services you receive for those rates (on a yearly basis) are suited to your specific financial situation.  


  1. What is your investment approach?  

Asking advisors about their investment philosophy will give you better insight into outcomes to expect from your investments. A professional should be able to describe their approach in detail and answer any questions you may have. While most advisors offer a range of risk levels and asset allocations, some may prefer aggressive growth over asset preservation and vice versa. If you don’t feel comfortable with high risks, you’ll want to hire an advisor who follows a conservative strategy, for example. That’s why it’s important to dig into how an advisor intends to allocate your funds and how they measure progress according to your goals, timeline, and risk tolerance.  


  1. Do you require a specific minimum investment 

Most financial advisors and advisory firms set a minimum fee or minimum investment as a requirement to manage your portfolio. For your relationship with your advisor to be realistic and sustainable, it’s important that you ensure that their minimum meets your capabilities. At Brakket Invest, our minimum for medium investors is $50,000, and we offer personalized installment plans for small investors and young investors.  


  1. What does your client base look like?  

Do they typically work with small-business owners, entrepreneurs, or individuals with assets that look like yours? Learning about your advisor’s clients gives you a better look into their skills and areas of expertise, which helps you ensure that you’re partnering with an advisor who has experience working with goals like yours.  


  1. What services do you provide to your clients?  

If you’re looking for holistic support to manage and improve your financial situation, you need to make sure that an advisor’s range of services covers your areas of interest. A good advisor will design a financial plan informed by their experience and insight into the market, as well as individual goals and risk tolerance. Ask your financial advisor about how they’ve recently assisted their clients, and how they would go about achieving your objectives.  


The most important questions however, are ones you will have to ask yourself. Do you trust the advisor you’re contacting? Do you feel comfortable talking to them? Does their way of doing things seem favorable to your growth, given your specific financial situation?  

Because we believe that trust and understanding are the pillars of advisor-client relationships, our team of financial advisors work closely with you to help you reach your financial objectives, in the manner that’s most suited to your situation.  


Have any more questions for our advisors? Get in touch with Brakket Invest