How to Choose a Financial Advisor: 7 Questions to Ask
Not all financial advisors are the same. Here are 7 critical questions to ask before trusting someone with your retirement savings.
4 min read · By John G. Ziesing, FRC
1. Are you a fiduciary?
A fiduciary is legally required to act in your best interest. Not all advisors are fiduciaries — some operate under a 'suitability' standard, which only requires that recommendations be 'suitable,' not necessarily the best option for you. Always ask.
2. How are you compensated?
Fee-only advisors charge a flat fee or percentage of assets. Commission-based advisors earn commissions on products they sell. Fee-based advisors do both. None of these is inherently bad, but you should understand how your advisor gets paid so you know their incentives.
3. What are your credentials?
CFP (Certified Financial Planner), ChFC (Chartered Financial Consultant), and FRC (Federal Retirement Consultant) are respected designations that require education, exams, and ongoing continuing education. At ACM, John Ziesing holds the FRC designation specializing in federal employee benefits.
4. What is your investment philosophy?
Does the advisor believe in aggressive market investing, conservative guaranteed products, or a blend? Make sure their philosophy matches your comfort level. At ACM, we focus on guaranteed insurance-based products because our clients value certainty over speculation.
5-7. Experience, Specialization, and References
How long have they been in business? Do they specialize in clients like you (retirees, federal employees, etc.)? Can they provide references from similar clients? At ACM, we've been serving clients since 1986 and have a 5.0 Google rating from 28 reviews.
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