How to Interview Financial Advisors


The biggest mistake a person could make when it comes to managing their money is hiring a financial advisor without having a face-to-face interview with the advisor. Similar to a job interview, only in person can you truly learn about the advisor. During the interview you will be able to tell whether he/she is the right advisor for you. To make sure you get the most out of the interview as possible ask the advisor these questions below. You will be able to tell if they’re a right fit by the way they answer.

What areas do you specialize in?

What area do you need assistance in? Retirement? Estate planning? Saving money?  Does the advisor list this as one of their areas of expertise? If no, begin looking elsewhere. You want to know if they are capable of assisting you before revealing information about your specific situation. If you give this information ahead of time they could potentially lie to you just to get your business.

Are there any potential conflicts of interest?

Almost every advisor you meet with will have some conflict of interest. If the advisor you meet with says they do not have any, be on alert because that it likely not true. The best advisors will be the ones that are honest about any and all conflicts and figure a way to alleviate the impact it will have on you as a client.

What makes your recommendations and advice better than other advisors?

When the advisor is explaining the recommendations they think are best they should also explain the alternatives to back up why what they suggest is the best option. Their recommendation should be best for your situation not the advisor or a general suggestion they make to everyone.

How much will the financial advisor cost you?

When a financial advisor charges on a fee-only basis the answer to this question is easy. If you meet with multiple advisors and one is significantly more money find out why. Are they just over charging or is it due to their qualifications and services?

The conversation that takes place during the interview should be split 60/40 if not 50/50. The advisor should not be the one doing all the talking. The advisor should ask question and allow you to answer and vice versa.

There are many financial consultants in New York, make sure you do everything you can to find the most qualified expert advisor to help you form a stress-free financial future.