Choosing a financial advisor is a big decision, especially when you’re trusting someone with a significant portion of your wealth. But knowing what to ask is only half the equation. You also need to know what to listen for in their answers. 

It’s easy to walk away from an introductory meeting having heard plenty about investment strategies, performance benchmarks, and the firm’s credentials without getting a clear picture of what working together would actually look like.

These seven questions will help you get past the pitch and understand whether an advisor’s services, experience, and approach are a good fit for your financial life.

The 7 Questions at a Glance

Question #1: “What services do you offer?”

Investment management is important, but your portfolio is only one part of your financial life. If you’re looking for wealth management, you’ll want to understand how an advisor connects investment decisions to everything else you’re trying to accomplish.

That includes tax strategies , cash flow, estate planning coordination, insurance needs, and charitable giving. These decisions are interconnected, and your investment strategy should account for them.

Listen for: An advisor who wants to understand your financial life before recommending a portfolio. Ask what their planning process looks like, how they evaluate different scenarios, and how often your plan will be revisited as your circumstances change.

At Monument, every relationship begins with understanding what matters most to you, the decisions you’re facing, and the options available to you. That work informs both your financial plan  and investment strategy.

Question #2: “Who is your typical client?”

An advisor who regularly works with people in situations similar to yours may have experience navigating the kinds of decisions you’re facing.

For example, an executive with significant stock compensation has different planning needs than someone preparing to sell a privately held business. Both may have substantial wealth, but the decisions surrounding taxes, cash flow, investment concentration, and retirement can look very different.

Listen for: An advisor who can describe the people they typically work with, the financial situations they help navigate, and the types of clients they may not be equipped to serve.

At Monument, we primarily work with executives, business owners, and families with complex wealth management needs, generally starting at $3 million in investable assets. We also maintain a network of professionals we can refer people to when their needs fall outside our focus.

Question #3: “What is your fee structure?”

You should understand exactly how your advisor gets paid and what you’re paying for.

Three common compensation models are commission-based, fee-based, and fee-only. The last two sound similar, but they aren’t interchangeable. Understanding how fee-only and fee-based advisors differ  can help you identify potential conflicts of interest and compare the actual cost of advice.

It’s also important to ask whether you’ll pay additional fees beyond the advisor’s stated rate.

For example, let’s say you have a $3 million portfolio and pay a 1% annual advisory fee. That’s $30,000 per year. If your advisor allocates $2 million to outside money managers who charge an additional 0.75%, you’re paying another $15,000 annually.

Your total cost is now $45,000 per year, before any other applicable investment or transaction expenses.¹

That’s a significant difference, and one you should understand before signing an advisory agreement.

Listen for: A straightforward explanation of how the firm is compensated, what’s included in its fee, and any additional costs you may incur. Ask specifically about third-party management fees, underlying fund expenses, commissions, and revenue-sharing arrangements.

Monument is a fee-only firm. Our ongoing advisory fee is generally based on a percentage of assets under management, with negotiated flat-fee arrangements available for larger relationships. We don’t receive commissions or revenue sharing from investment products.

Question #4: “Who will I be working with, and what are their credentials?”

The person you meet during the introductory process may not be the person managing your portfolio or answering your questions once you become a client.

Ask who will be responsible for your financial plan, who makes investment decisions, and whom you’ll contact when something comes up. You should also understand the experience and qualifications of the professionals you’ll be working with.

Professional credentials can provide useful insight into an advisor’s areas of expertise. For example, CFP® certification focuses on financial planning, while the CFA® charter emphasizes investment analysis and portfolio management.

You can verify CFP® certification through CFP Board  and review registration and background information through FINRA’s BrokerCheck  or the SEC’s Investment Adviser Public Disclosure database.

Listen for: Clear answers about who does what, how accessible those professionals will be, and whether you’ll have a dedicated advisor or access to a broader team. You should know who is responsible for your relationship before you become a client.

At Monument, clients work with a team that includes CERTIFIED FINANCIAL PLANNER™ professionals and CFA® charterholders. Our advisors get to know your financial life, priorities, and the decisions you’re facing, while our in-house investment team manages portfolios with that broader context in mind. You have access to professionals with different areas of expertise, all working together on your behalf. 

Question #5: “Are you a fiduciary?”

A fiduciary investment adviser is legally obligated to act in your best interest when providing investment advisory services. But not everyone who calls themselves a financial advisor operates under the same legal standard.

Some financial professionals are registered as both investment adviser representatives and brokers. Depending on the capacity in which they’re acting, different legal obligations may apply to the recommendations they make.

Ask whether your advisor will act as a fiduciary throughout your relationship and whether there are any accounts or services where they’ll operate under a different standard.

Listen for: A clear explanation of the firm’s registration, compensation structure, and fiduciary obligations. You should be able to verify the answer through the firm’s Form ADV and Form CRS.

Monument is a fee-only, SEC-registered investment adviser. We don’t receive commissions for selling investment products, and our advisory relationships are governed by fiduciary obligations.

Question #6: “How would you invest my money?”

An advisor should want to know quite a bit about you before recommending how to invest your portfolio.

What are you trying to accomplish with your wealth? How much cash will you need in the next few years? Are you planning to retire, sell a business, or make a significant purchase? How much investment risk can you afford to take, and how much are you comfortable taking?

The answers should inform your investment strategy.

Without that context, it’s difficult to know whether a proposed portfolio is appropriate for your situation or whether you’re taking on more investment risk than you intended .

Listen for: An advisor who explains how investment decisions are made, what information they need from you, and how your portfolio will support your broader financial goals.

At Monument, we begin with a discovery meeting and a complimentary wealth check before recommending an investment strategy.

Question #7: “What is your succession plan?”

This is a question many people don’t think to ask until they’ve already built a relationship with an advisor.

What happens if your advisor retires, leaves the firm, or becomes unable to work? Who takes over your relationship, and how will they know your financial situation, priorities, and the decisions you’ve made together?

If you’re planning to work with a wealth advisor for decades, it’s worth understanding how the firm plans to maintain continuity.

Listen for: A clear succession or continuity plan. That might include a team-based service model, an established ownership transition plan, or an arrangement with another advisory firm.

At Monument, our partnership structure and team-based approach are designed to provide continuity as the firm grows and evolves.

Common Questions About Choosing an Advisor

How do you choose a wealth manager versus a financial advisor?

The process is similar because the titles alone don’t tell you what services a firm provides. Wealth management firms generally work with clients who need help coordinating multiple aspects of their financial lives, including investments, taxes, estate planning, stock compensation, and business transitions.

Ask the same seven questions, but pay particular attention to the firm’s typical clients and whether its services match the complexity of your financial situation.

What should you do before the first meeting?

You don’t need to arrive with a perfectly organized financial plan, but a little preparation can make the conversation more productive.

Have a general understanding of what you own and owe, think about the financial decisions you expect to face over the next several years, and review the firm’s Form CRS, if applicable, to understand its services, fees, and potential conflicts of interest.

You should also come prepared to talk about what’s working in your financial life and what you wish you had more help with.

What are the biggest red flags when choosing a financial advisor?

Pay attention to how the advisor approaches your first conversation. Are they asking questions about your financial situation, or are they already recommending investments? Can they clearly explain their fees? Are their credentials and registration easy to verify?

You should leave the meeting with a better understanding of how the advisor would work with you, not just a presentation about the firm.

How many advisors should you interview?

There’s no required number, but speaking with two or three firms can help you compare their services, fees, experience, and approach to working with clients.

You’ll also get a sense of which advisor asks the right questions, understands your priorities, and communicates in a way that works for you. After all, this is someone you may be working with for decades.

Before You Choose a Financial Advisor

Whether you’re interviewing wealth management firms for the first time or reconsidering an existing advisory relationship, these seven questions can help you understand what you’re getting and whether it’s what you actually need.

At Monument, we start by getting to know you, your financial situation, and the decisions you’re facing. Our Complimentary Wealth Check is an opportunity to talk through your priorities, ask questions, and see whether working together makes sense.

Learn more about how we work , or schedule a conversation .

 

¹ This is a hypothetical illustration for educational purposes only. Fee structures, amounts, and arrangements vary by firm and by client situation; actual costs may differ.

Note: Monument is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. Please consult your CPA for tax advice.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute. Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it authorizes use of by individuals who successfully complete CFP Board’s initial and ongoing certification requirements.