7 Questions to Ask Before Choosing a Financial Advisor

A list of services doesn’t tell you much by itself. “Financial planning” means something different from one advisor to the next. Some advisors primarily manage investments. Others spend more time helping clients work through retirement, Social Security, taxes, insurance, cash flow, and other financial decisions.

As retirement gets closer, the focus often shifts to turning assets into retirement income — when to begin withdrawals, which accounts to draw from, and how much can reasonably be spent while preserving long-term security. The same applies to business retirement plans: an advisor’s role often continues through regular plan reviews and employee education.

Investment management should fit into the bigger financial picture. Someone still working and saving for retirement needs a different approach than someone living in retirement who relies on savings for income.

Nobody can tell you which investment will perform best next year. However, the ‘why’ should be clear — why your money is invested the way it is, and how that specific strategy fits with the rest of your financial plan — whether you want input on those decisions or prefer to leave them to a professional. The standard mix might suit you — or it might just be the standard mix. It's worth asking whether they'll build it around your preferences — rather than assuming the answer is yes before you sign.

It is important not to confuse education with experience. Designations like CFP®, CFA®, or ChFC® represent serious education and testing — plus a real annual financial commitment to keep the letters. But they tell you what an advisor studied, not what it’s like to work with them.

One question worth asking directly: “How did you get into this business?” It reveals why someone does what they do, their background, and whether they have experience working with clients facing goals and needs similar to yours.

Look for clear communication about costs before you become a client. Many people don’t have a clear picture of their current costs, because firms structure compensation in different ways.

The business structure is worth understanding: Is the advisor independent or connected to a larger company? Do they have sales quotas or product limitations? Understanding how an advisor is compensated gives you vital context for deciding if the relationship is a good fit.

The person you meet while considering an advisor isn’t always who handles your account. If a team is involved, it’s worth understanding who you’ll actually deal with day to day and how responsive they are when important decisions come up.

It is also worth knowing how the advisor coordinates with your CPA, estate attorney, and insurance professionals. Financial decisions don’t happen in isolation. It helps to know the person you’re hiring, not just the firm.

Regular contact should mean something. It's worth asking what the review process actually looks like — an advisor with a consistent process turns check-ins into a roadmap that keeps you both on the same page. Then consider what each interaction costs: if every update risks a fee, it might become easier to delay a conversation that should happen — resulting in an advisor providing advice that may no longer be relevant.

And it's worth confirming the schedule applies to the person doing the actual work. A review calendar means little if the advisor on the business card isn’t the one calling — and when life changes the plan, revising it ideally comes with the relationship, not as another fee.

“Fee-only” and “fee-based” are business models, not quality ratings. The difference is what the advisor can offer. A fee-only advisor cannot offer commission-based accounts. A fee-based advisor can.

E.P. Wayne Financial Group’s advisory accounts work the way fee-only does: no commissions, fiduciary care. Planning is included rather than charged separately — something not every fee-only firm offers. A client who wants a fee-only relationship gets one. E.P. Wayne Financial Group can also offer a commission-based account if, along with the client, we believe it is the better fit for a particular holding, strategy, or plan. In industry terms, that combination is called fee-based.