10 Questions to Ask Before You Hire a Financial Advisor
- Apr 27
- 3 min read
Are you evaluating a Financial Advisor? Here are 10 questions that should be asked before you hire an advisor. The right advisor will welcome every one of these. The wrong one will deflect.
Hiring a financial advisor is one of the most consequential decisions you'll make with your money. Before you sign anything, ask these ten questions, and pay close attention to how directly each one gets answered.
1. Are you a fiduciary 100% of the time? Not "sometimes." Not "when it applies." A real fiduciary is legally required to put your interests first on every recommendation, every time. If the answer comes with conditions, that's your answer.
2. How exactly are you compensated? You want a clear breakdown: fees, commissions, revenue sharing, referral payments, anything. If they earn money from anyone other than you, you deserve to know who and how much.
3. Are you fee-only, fee-based, or commission-based? These three words sound similar and mean very different things. Fee-only advisors are paid only by you. Fee-based and commission-based advisors can earn additional money from selling you products.
4. What are your credentials, and what do they actually require? CFP®, CFA®, and CPA designations require years of study, exams, and ongoing ethics standards. Ask which they hold and what those credentials commit them to.
5. Who is your typical client? You want an advisor who works with people in situations like yours — similar income, life stage, complexity. A great advisor for a retiring executive may not be the right fit for a young business owner.
6. What services are included in your fee? Investment management is just one piece. Ask whether tax planning, estate coordination, insurance review, and retirement projections are included or billed separately.
7. How often will we meet, and who will I actually work with? At some firms, the person who pitches you isn't the person who manages your account. Ask who you'll talk to, how often, and what happens when they're unavailable.
8. Where will my money be held? Your assets should be held at an independent third-party custodian (Schwab, Fidelity, etc.) — not with the advisor directly. This is the structural safeguard that prevents Madoff-style fraud.
9. Can I see a sample financial plan and a sample fee disclosure? Real advisors have real deliverables. Ask to see what their planning work actually looks like and exactly what you'll pay in writing before you commit.
10. What happens if I want to leave? A confident advisor has zero issue with this question. Ask about exit terms, transfer fees, and any contractual lock-ups. Your money should never be held hostage.
How We Answers These Questions
At Cannon Capital Management, we built our firm to make every one of these questions easy to answer:
We are a fee-only fiduciary — 100% of the time, on every recommendation
We are paid only by our clients, with no commissions or third-party payments
Your assets are held at an independent custodian, never with us
Our fee schedule and services are disclosed in writing, upfront
You can leave at any time, with no penalties or lock-ups
If you're evaluating an advisor — including us — bring this list. The answers will tell you everything you need to know.
Have questions about your current advisor relationship? Schedule a no-obligation conversation with our team.
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