Questions to Ask When You Hire a Financial Advisor

When you go to the hospital for a check-up, you can be fairly certain that the doctor who attends to you will have a degree in medicine, years of residency, and has taken the Hippocratic Oath ensuring that they 'do no harm.' Unfortunately, says Jeff Breault, the same can't be said about a financial advisor. In fact, anyone can call themselves a financial advisor without ever having to produce specific qualifications or certificates.

That being said, here are a few important questions you should ask prospective financial advisor:

1. How do you make your money?

Financial advisors that are connected to big firms may be incentivized to offer certain products and services may not be the best for you. Find out if they take a cut out of your contributions.

2. What kind of investments do you specialize in?

Going back to the doctor analogy, an oncologist will always suspect cancer while an immunologist will blame all your problems on allergies. A specialist will stick to what he knows.

3. What is your typical client like?

Some financial advisors specialize high-earning, high-risk appetite clients while others specialize in the average Joe who wants to set something aside for their retirement. Find out which one your analyst is.

4. What's your relationship like with your other clients?

Find out how often they talk to their clients, and how they communicate with one another. Is this person here to sell you a product, or will he or she stick with you?

5. Can you provide a written guarantee of your fiduciary duty?

Not all advisors are required by law to have your best interests in mind. Get it on paper.

You may feel that you're at a disadvantage when you first meet a financial advisor, and for good reason. You are looking for someone you can trust to help you handle your hard-earned money and your future well-being. For the advisor, it could just be another Tuesday.