7 Questions to Ask Before Hiring a Financial Professional
You should interview several people to make sure you find the best match for you.

You've worked hard and saved money for retirement. The last thing you need is to lose the money in a volatile stock market or with an investment professional that may not understand your unique situation. You need someone who understands the market and will work with you to create a plan that reaches your financial goals.
Don't hire the first person who is recommended to you.
Take time to interview several financial professionals before making a decision of who will invest your money. Below are seven questions you should consider asking them. If anyone can't (or won't) answer questions to your satisfaction, he or she may not be the best match.

Sign up for Kiplinger’s Free E-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.
1. Can I ask you a few questions?
Seems ridiculous to ask this question, but if they're not open to talking to you about how they operate their business, their training and background or investment style, they may not be open to answering questions about how your money is invested. It might be better to find someone else who is willing to answer your questions.
2. What's your investment philosophy?
You're investing your future with this company and person, so it's important you can talk to them in terms you both understand. If they put money in what seem like complicated investments, you will likely have an uphill battle to decipher the basic elements of your account. It's better to have someone who has a similar philosophy to your own and can explain what they're doing in a way that makes you comfortable.
3. Are you fully licensed?
If they're only licensed for insurance, it's likely they will only recommend insurance products in a financial plan. While that may make sense for your portfolio, it may not be the best option. When a financial adviser is fully licensed it means they have securities and insurance licenses and are required to have ongoing training. For example, I am fully licensed, which means I have Series 7 and 66 and am allowed to sell nearly any investment. I also have a life insurance license, which allows me to sell life, long-term care and annuities.
4. What kind of continuing education do you practice?
It's important to be constantly learning, especially in this field that can change with the stock and bond markets as well as the law. As a fully licensed professional, I have the Accredited Asset Management Specialist (AAMS) designation, which requires that I have tenure in the industry, additional continuing education and subscribe to a code of ethics.
5. How do you get paid?
The financial industry does a good job of confusing people about how we get paid but that is not our intention. In fact, if you're confused at the answer you get to this question, that person may not be right for you. As a fully licensed financial adviser, I typically get paid in one of three ways, depending on the services I provide to the client: via a commission for the products I sell, a money management fee as a percent of assets under management or a financial planning fee for creating a plan you will execute.
6. How do you invest in yourself?
It's my belief and practice that I have to take time for myself and my family so that I can best serve my clients. If I am always working, it can feel like I can hardly breathe, and I am not enjoying my work. Taking breaks and vacations helps reset and renew so that I can truly focus on what I love—helping my clients reach their financial goals.
7. Why did you become a financial professional?
The answer to this question tells you how passionate they are about their work and connects you to them in a personal way. I became a financial professional to help women understand money and investments in a way that wasn't available when I was growing up. I want you to have education about what's right for your personal financial future. That truly matters to me.
When I sit down with prospective clients, I want to get to know them and I want them to know me. Whether you work with me or someone else, it's important that you are comfortable and understand what's happening with your investments. You've worked hard and your money should work for you in ways that make sense for your financial goals. Don't be afraid to ask questions before hiring a financial professional.
Shanna Tingom is the co-founder of Heritage Financial Strategies. Her specialty is working with female entrepreneurs, business leaders and individuals experiencing life transitions.
Shanna Tingom is a Registered Representative, securities offered through Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC., Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser.
Cambridge and Heritage Financial Strategies are not affiliated.
Get Kiplinger Today newsletter — free
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.

Shanna Tingom is a registered representative, securities offered through Registered Representatives of Cambridge Investment Research, Inc., a Broker/Dealer, member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge and Heritage Financial Strategies are not affiliated.
-
Six Ways to Pay Off High-Interest Debt (and Still Save for the Future)
Get out of debt and reach your goals sooner by starting with a well-thought-out plan.
By Kiplinger Advisor Collective
-
Vaccines Medicare Covers for Free
The U.S. is experiencing an outbreak of measles and is on track to have the most whooping cough cases since 1948; these vaccines Medicare covers for free can keep you safe.
By Donna LeValley
-
Four Takeaways From Filing Your Taxes to Boost Your Financial Future
Now that another tax season is in the rearview mirror for most of us, what lessons can you take from what you learned about your finances to plan for the future?
By Kate Winget
-
What Claims Adjusters Are Thinking vs What They're Saying
After a natural disaster, few of us are at our best, but here's what to keep in mind when you're interacting with your insurance company's claims adjuster.
By Karl Susman, CPCU, LUTCF, CIC, CSFP, CFS, CPIA, AAI-M, PLCS
-
Looking to Make a Job Change? How to Stand Out Like a Pro
To make a strong first impression in interviews or when networking, skip your job title and work history and use an opening gambit that highlights your talents.
By Anne deBruin Sample, CEO
-
First 100 Days: Trump's Impact on Your Finances
Here are some opportunities to consider regarding investing, interest rates and tax cuts as the financial landscape shifts under the new administration.
By Daniel Razvi, Esquire
-
What Would Happen if You Put Your Tax Refund in an IRA?
Not only could you get a tax break, but the compounding effect over 35 years could turn the average refund into nearly $14,000.
By Romi Savova
-
Children Can't Afford to Fly the Nest? Here's How to Help
The high cost of living means more adult children are staying at home. Here are four ways to help financially so they can eventually spread their wings.
By Kelli Kiemle, AIF®
-
A QLAC Does So Much More Than Simply Defer Taxes
Here are the multiple ways you can use a QLAC, from managing retirement risks to creating income for specific retirement needs and wants.
By Jerry Golden, Investment Adviser Representative
-
Self-Directed Brokerage Accounts: Retirement's Hidden Gem?
SDBAs are often overlooked, but they can offer more flexibility and growth potential inside your 401(k) when actively managed by a professional.
By Scott M. Dougan, RFC, Investment Adviser