8 Questions to Ask Before Making Any Investment
When meeting with a financial adviser, it can be a little intimidating, but don't let any fear of looking uninformed keep you from asking some important questions.


Many people who ask me about investments or about wanting to set up an appointment often preface it by saying, "I'm sorry, this is probably a stupid question, but…"
I started to wonder why people often say this and asked myself if I ever do. For me, it's usually when I'm talking to someone, such as a doctor or a lawyer, about a subject I don't know a lot about or that intimidates me. I think most people are afraid to ask questions about their investments for fear of sounding bad or admitting in some way that they don't have all of their "stuff together."
I can assure you, there truly are no stupid questions when it comes to investments. Every question leads to more knowledge, and that's a good thing.
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.
First, let's start with questions about the investment itself:
- Is this product registered with the SEC or my state agency?
- Does this investment match my investment goals? Why do you feel it is suitable for me?
- How does this investment make money? Dividends? Interest? Capital gains?
- What are the total fees to purchase it? Not just commissions but any underlying fees as well.
- Is this investment liquid? Are there any fees associated with accessing my money?
- Can you tell me about the management team? Many companies tout past performance, but that may have come from a team that isn't there anymore.
- What is a reasonable return to expect for this investment? How has it performed over the long run? Many managers who highlight performance do so after a great year. If you are a long-term investor, that might not be meaningful to you.
- What are the risks associated with this investment? What would cause it to lose money?
Next is a list of questions you should ask about the adviser:
- How long have you been in business?
- What education or credentialing do you have? The credentials should match the advice you're looking for. For example, if you need planning advice, the advisor should be a Certified Financial Planner TM professional. If you want investment advice, then they should hold designations such as Certified Investment Management Analyst® (CIMA®), or Chartered Financial Analyst (CFA®).
- What is your investment philosophy?
- How do you get paid? Do you get paid more if I buy this vs. that?
- How often should we meet to discuss my investments?
- If I leave your firm, what are the fees if any? Most custodians charge a fee for outgoing transfers and/or closed accounts.
These questions are not inclusive, and you may have more depending on your situation. It is also important to ask a question more than once if you don't understand the answer the first time or to ask your adviser to rephrase the answer in a different way.
Understanding your investments and doing your due diligence on the adviser you’re working with is similar to researching a physician and understanding your prescribed medications. You wouldn’t leave your health to chance, and the same type of care should be taken with your money.
Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment advisory services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Reich Asset Management, LLC is not affiliated with Kestra IS or Kestra AS. The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney or tax adviser with regard to your individual situation.
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.

T. Eric Reich, President of Reich Asset Management, LLC, is a Certified Financial Planner™ professional, holds his Certified Investment Management Analyst certification, and holds Chartered Life Underwriter® and Chartered Financial Consultant® designations.
-
4 Career Moves to Make Now if You're Worried About a Recession
Worried about a recession? These steps to protect your job prospects will help you professionally whether a downturn develops or not.
-
How StoryCorps Works and How You Can Tell Your Story
StoryCorps has recorded conversations between thousands of people, and anyone can participate. National facilitator Alan Jinich explains how to share your story.
-
I'm a Retirement Psychologist: Here's Why Doing What You 'Ought' in Retirement Beats Doing Whatever You Want
True retirement freedom isn't about simply doing whatever you want, but about finding purpose and direction through commitments that align with your deepest values and allow you to contribute meaningfully.
-
Tactical Roth Conversions: Why 2025-2028 Is a Critical Window for Retirees
The One Big Beautiful Bill (OBBB) extended today's low tax brackets, but they may not last. Here's how smart planning now can prevent costly tax surprises later.
-
Ready to Retire? It's Not Too Late to Convert to a Roth IRA
Millions of Americans are turning 65 this year. If you're retiring soon, don't dismiss the idea of a Roth conversion — it could still be a smart move even now.
-
I'm a Financial Adviser: Three Things You Will Wish You Did Before the Fed Cuts Interest Rates
With potential interest rate cuts on the horizon, you might want to lock in today's higher yields and consider adjusting your asset allocation.
-
Simple Ways to Save on Back-to-School Shopping This Year
Set a budget and stick to it, scour the house for what you already have, decorate backpacks and lunch boxes with your kids and consider buying some items during holiday sales.
-
The Seven-Day Financial Reset: A Simple Plan to Get Control of Your Money, From an Expert
Sometimes, getting unstuck requires a reset. These practical steps can help you tackle your money issues and feel less overwhelmed by it all.
-
Three Pros (and Four Cons) of Hiring Multiple Financial Advisers: The View From a Financial Adviser
There's nothing to stop you from working with several financial advisers instead of just one. But take a balanced view of the risks and rewards first.
-
I'm an Annuities Expert: Here Are Two Ways to Use Annuities to Benefit From the OBBB
To qualify for a new tax break included in the One Big Beautiful Bill Act, some older adults need to lower their taxable income. Annuities can make that happen.