Is Your Financial Adviser Doing a Good Job for You?
If your meetings focus only on investment returns, that’s a problem. These 10 questions can help you determine if your financial adviser is being lazy.


When you decide to work with a financial adviser, you are, in many ways, buying the invisible. They can make a lot of promises, but how much of that is real, and how much of it is sales? In many cases, it is hard to gauge how well your financial adviser is doing until after the honeymoon phase, or about six to 12 months. Even then, what metrics are used to grade them?
Often, when people think of financial advisers, they think “investments.” If your adviser is managing only your investments, you might be missing opportunities and leaving money on the table. You could also be overpaying in fees, since you could receive more services for the same cost. Do not let your adviser be lazy with your hard-earned life savings.
While that may seem to be the most objective method, the real value of a financial adviser is much more nuanced. Fortunately, Vanguard and others have put together studies recently to help quantify this value. Vanguard’s study concluded a potential value-add of up to 3% or more, based on a number of categories. In order to achieve this value, though, an adviser will need to do much more than select an investment portfolio. Proactive management in the areas of tax, income and investment planning is critical if the value of the adviser will justify or exceed the fee.

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.
Since most of the people who come to us are already working with an adviser who is not providing the full range of services they need — and they are not aware of what they’re missing — we put together our own checklist as a litmus test to help them discern whether they are getting the type of planning they could really benefit from.
Here’s a checklist to see if your current financial adviser is doing what you deserve:
1. Are they a fiduciary?
Explanation: A fiduciary is legally obligated to act in your best interest. If your adviser has primarily sold you products (annuities and life insurance), they are likely not operating as a fiduciary.
2. Do they review your tax return annually?
Explanation: If your adviser is not reviewing your tax return annually, then they are likely missing things. Moreover, they should be reviewing your tax plan before the end of the year, taking advantage of charitable strategies, Roth conversions and tax-loss harvesting, among a plethora of other opportunities to maximize benefits for that tax year.
3. Have they been doing Roth conversions for you?
Explanation: In 2026, tax rates are slated to increase with the sunset of the Tax Cuts and Jobs Act. Many forward-looking advisers have been preparing for this by performing annual Roth conversions for their clients, taking advantage of lower tax rates to better position their clients for the tax increases to come. Most of our clients are doing Roth conversions right now.
4. Have they discussed how to avoid the Social Security tax torpedo?
Explanation: Any adviser working with retirees should be well-versed in Social Security taxes and be developing a plan to avoid the Social Security tax torpedo. If you are going to receive any income in retirement in addition to Social Security (including pensions and RMDs from your IRA or 401(k) plan), then planning for this tax is pivotal. Not planning for this could lead you to pay a 40% to 50% tax rate.
5. If you give to charities, have they put together a donor-advised fund (DAF) for you or started qualified charitable distributions (QCDs)?
Explanation: Has your adviser asked about your charitable giving? There are myriad strategies, including QCDs starting at age 70½ and DAFs at any age, that can be implemented to save on taxes.
6. Are you being charged for internal expense fees in addition to a management fee?
Explanation: Many mutual funds come with internal expenses, which pay not only your adviser but also the fund manager/investment company. Depending on how you are invested, your management fee, in addition to your internal expenses, can create a high, even excessive, fee, reducing any growth in your portfolio. This is a fee that could be reduced if you work with a financial adviser who manages investments in more cost-efficient ways.
7. Have they developed an income plan for your retirement that protects a portion of your portfolio from losses in a down market?
Explanation: Are you investing in traditional stocks and bonds in your portfolio? How did you feel in 2022 when stocks were down 20% and bonds were down 15%? The most top-of-mind issue for most retirees is income, and any income plan that involves withdrawals from investments at risk of loss is subject to sequence of returns risk. (See my YouTube video about sequence of returns risk.)
8. In the past year, have they brought a new opportunity to your attention? Did they tell you about I bonds in 2022 when they were at a 9.62% guaranteed interest rate?
Explanation: Does your adviser call you when new opportunities arise? This is one of the clear signals as to how hard your adviser is working to proactively improve your plan.
9. How often do you meet? Are investment returns the main topic of conversation, or is your adviser bringing additional value and proactive solutions to the table?
Explanation: If your review meetings are spent primarily looking at the investment returns of your portfolio, then you could be paying more in fees for just investment advice. Ask yourself what percentage of the review meeting is spent looking at the past and what percentage of the meeting is spent planning for the upcoming year. Are you looking in the rearview mirror or through the windshield?
10. Does your adviser work with a team, or is your retirement plan in the hands of only one person?
Explanation: Every adviser has a capacity as to how many clients they can serve well. Simultaneously, every adviser has areas of strength and weakness. How many clients they have, and how many team members they have, will give you a clue into how much of their time they are able to spend working on your plan each year.
If you can positively and confidently answer most or all of these questions, then you probably have a good adviser and should be grateful that you have found a trusted guide who is working hard on your behalf.
If you’re left with more questions than answers, or wondering what it is that your adviser actually does, then maybe it’s time to get a second opinion on your plan. As they say, you can’t get a second opinion from the person who gave you your first.
related content
- Eight Times You Should Contact Your Financial Adviser
- A Virtual Financial Adviser Could Be the Right Fit for You
- Can I Hire a Financial Adviser to Manage My 401(k)?
- Should I Pay a Financial Adviser an Assets Under Management Fee?
- Financial Planning in an Age of Increasing Longevity
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.

As Founder and CEO of Peak Retirement Planning, Inc., Joe Schmitz Jr. has built a comprehensive retirement planning company focused on helping clients grow and preserve their wealth. Under Joe’s leadership, a team of experienced financial advisers use tax-efficient strategies, investment management, income planning and proactive health care planning to help clients feel confident in their financial future — and the legacy they leave behind. Joe has also written two books, I Hate Taxes (request a free copy) and Midwestern Millionaire (request a free copy). You can find Joe on YouTube by clicking here, where he creates educational videos for those in or near retirement with $1M or more saved.
-
Cord Cutting Could Help You Save Over $10,000 in 10 Years
How cutting the cord can save you money and how those savings can grow over time.
-
The '8-Year Rule of Social Security' — A Retirement Rule
The '8-Year Rule of Social Security' holds that it's best to be like Ike — Eisenhower, that is. The five-star General knew a thing or two about good timing.
-
You Were Planning to Retire This Year: Should You Go Ahead?
If the economic climate is making you doubt whether you should retire this year, these three questions will help you make up your mind.
-
Are You Owed Money Thanks to the SSFA? You Might Need to Do Something to Get It
The Social Security Fairness Act removed restrictions on benefits for people with government pensions. If you're one of them, don't leave money on the table. Here's how you can be proactive in claiming what you're due.
-
From Wills to Wishes: An Expert Guide to Your Estate Planning Playbook
Consider supplementing your traditional legal documents with this essential road map to guide your loved ones through the emotional and logistical details that will follow your loss.
-
Your Home + Your IRA = Your Long-Term Care Solution
If you're worried that long-term care costs will drain your retirement savings, consider a personalized retirement plan that could solve your problem.
-
I'm a Financial Planner: Retirees Should Never Do These Four Things in a Recession
Recessions are scary business, especially for retirees. They can scare even the most prepared folks into making bad moves — like these.
-
A Retirement Planner's Advice for Taking the Guesswork Out of Income Planning
Once you've saved for retirement, you'll need your nest egg to support you for as many as 30 years. For that, you need a clear income strategy, not guesswork.
-
Why Smart Retirees Are Ditching Traditional Financial Plans
Financial plans based purely on growth, like the 60/40 portfolio, are built for a different era. Today’s retirees need plans based on real-life risks and goals and that feature these four elements.
-
To My Small Business: Well, I've Been Afraid of Changin', 'Cause I've Built My Life Around You
While thinking about succession planning might feel like anticipating a landslide (here's to you, Fleetwood Mac), there are strategies you can implement to manage the uncertainty and the transition.