Questions to Ask Your Advisor

Questions About Compensation

Are you a fiduciary? Are you legally required to act in my best interest at all times? How are you compensated? Do you receive any payments beyond the fees I pay you directly? If so, what are they and how do they affect your recommendations? What is the total all-in annual cost of working with you, including your fee and the average expense ratio of the investments you recommend? How does your compensation change depending on which products or strategies you recommend to me?

Questions About Credentials and Experience

How long have you been registered as an investment advisor? How many clients do you currently serve? What is the average account size you manage? What professional designations do you hold and how are they maintained? Have you ever had a regulatory action or customer complaint filed against you or your firm? Can I see your full Form ADV Part 2 disclosure document?

Questions About Investment Philosophy

What is your investment philosophy and how does it translate into the portfolios you build for clients? How do you select the specific funds or securities you recommend? Do you receive any compensation from the funds or securities you recommend? How do you measure and communicate portfolio performance? How do you handle market downturns and how have client portfolios performed during periods of significant market volatility?

Questions About the Relationship

How often will we meet or communicate? Who at your firm will I be working with directly? What happens to my account and my relationship if you leave the firm or retire? How do you handle client complaints or disputes? What is your process for understanding my financial goals, risk tolerance, and personal circumstances before making any recommendations?