5 Questions Some Financial Advisers Hope You Don't Ask
Their answers can help you decide whether you should trust this person with your money.
With more than 10 years of experience as an investment adviser and insurance professional, my goal has long been to help my clients reach their financial goals so they can enjoy their retirement to the fullest.
That said, it helps when people have realistic goals concerning retirement and the willingness to make the choices needed to work toward achieving those goals.
That all begins with the choice of a financial adviser. It is up to you to do your homework, ask the right questions and make a reasoned choice when picking a person or group to help you manage your money.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Financial advisers likely aren't going to share all the information about themselves or how they conduct business on their websites, but there are a handful of questions you should ask before moving forward.
They might prefer these questions didn't come up, but if the financial professional you're talking to is reluctant to answer them, you might want to consider moving on to the next name on your list.
Here are the questions your potential adviser might hope you don't ask—but you should:
1. What investments or companies do you recommend?
If an adviser recommends a specific type of investment or a specific company or companies, it's possible they are only offering a handful of the options out there.
Reject a cookie-cutter approach. A financial adviser should offer a broad and diverse range of investment approaches, and more importantly, should customize recommendations to each client.
2. What's been your approach over the last five or 10 years?
It is reasonable to have a conversation about an adviser's track record of recommendations before making your decision. How they answer could be a red flag. An answer may come easy if they only offer a one-size-fits-all approach to investing. Press them for specifics on how they would add value to your bottom line with specific, customized choices for your investments.
3. What are your fees?
There is more than one way to pay for financial management, and each has pros and cons.
Fee only
This is a one-time flat fee for a financial plan. When paying a flat fee, it's important to understand what value you're receiving for the fee you're paying.
Fee based
This typically is a percentage fee levied on your portfolio in return for professional management. Fee ranges vary, but generally average between 1% and 2.5% of the total value of the investments. One of the most important components to deciding whether a fee is low or high is what value you're getting from paying the management fee.
Commission based
Some advisers prefer to earn a commission after recommending a fund or investment to their client. There is criticism of possible conflict of interest since the commission is paid by the company whose products the adviser sells. That doesn't preclude an adviser from making sound decisions regarding your portfolio, but you should stay vigilant that your needs are being met.
All of these are viable options for paying a financial adviser. When asked, a potential adviser should offer all of them, or a blend of fees based on your personal preferences.
4. What's the minimum investment you will accept?
You certainly should discuss whether a potential adviser requires a minimum investment before you agree to work together. A minimum investment will allow an adviser to build a more customized plan for your money. If you don't meet the minimum requirements, hopefully the adviser can offer you another solution, such as directing you to a colleague who has waived those requirements.
5. How are you different from other advisers?
If an adviser cannot answer this question, I recommend you walk away. An adviser should be able to provide distinctions tailored to you and your needs rather than offering a one-for-all plan.
One of the most important keys to your financial success leading to a comfortable and confident retirement is to align yourself with an investment adviser who shares your goals and vision and who is able to provide a plan to help you meet them.
Senior investment adviser Chris Hobart is founder of Hobart Financial Group, based in Charlotte, North Carolina. He is a Registered Financial Consultant, Investment Adviser Representative and licensed insurance agent.
Kim MacCormack contributed to this article.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

Senior investment adviser Chris Hobart is the founder of the Hobart Financial Group, based in Charlotte, N.C. A graduate of the University of North Carolina at Chapel Hill, he is a Registered Financial Consultant, Investment Adviser Representative and licensed insurance agent. He is a nationally recognized financial commentator and frequently appears on CNBC, Fox Business, CBS and local Charlotte news programs.
-
Dow Beats 334-Point Retreat on Tech Bite: Stock Market TodayInvestors, traders and speculators wonder whether this remains a Magnificent 7 market and how long this AI-driven bull run will last.
-
What Services Are Open During the Government Shutdown?The Kiplinger Letter As the shutdown drags on, many basic federal services will increasingly be affected.
-
Ten Ways Family Offices Can Build Resilience in a Volatile WorldFamily offices are shifting their global investment priorities and goals in the face of uncertainty, volatile markets and the influence of younger generations.
-
Should Your Brokerage Firm Be Your Bookie? A Financial Professional Weighs InSome brokerage firms are promoting 'event contracts,' which are essentially yes-or-no wagers, blurring the lines between investing and gambling.
-
Supermarkets Have Become a Pickpockets' Paradise: How to Avoid Falling VictimSome stores regularly rearrange inventory with the aim of increasing purchases, and they're creating opportunities for thieves to steal from customers.
-
I'm a Wealth Adviser: These Are the Pros and Cons of Alternative Investments in Workplace Retirement AccountsWhile alternatives offer diversification and higher potential returns, including them in your workplace retirement plan would require careful consideration.
-
I'm a Financial Planner: If You're Within 10 Years of Retiring, Do This TodayDon't want to run out of money in retirement? You need a retirement plan that accounts for income, market risk, taxes and more. Don't regret putting it off.
-
Five Keys to Retirement Happiness That Have Nothing to Do With MoneyConsider how your housing needs will change, what you'll do with your time, maintaining social connections and keeping mentally and physically fit.
-
Budget Hacks Won't Cut It: These Five Strategies From a Financial Planner Can Help Build Significant WealthCutting out your daily latte might make you feel virtuous, but tracking pennies won't pay off. Here are some strategies that can actually build wealth.
-
To Unwrap a Budget-Friendly Holiday, Consider These Smart Moves From a Financial ProfessionalYou can avoid a 'holiday hangover' of debt by setting a realistic budget, making a detailed list, considering alternative gifts, starting to save now and more.