Most people wait until something breaks before calling a financial advisor. That's usually the worst time to shop around. A little research upfront saves a lot of hassle.
Licensing & Insurance Questions
Ask for their CRD number and look it up on BrokerCheck. That tells you if they've been sued, fined, or banned. Anyone who hesitates to give you that number is hiding something. Also ask if they carry errors and omissions insurance. If they screw up, you want a way to recover your money without a lawsuit.
Experience & References Questions
Don't ask how long they've been in business — ask how many clients they've worked with who had a situation similar to yours. A 20-year veteran who only manages million-dollar portfolios is useless if you're trying to save for a house. Get two references from people who hired them at least three years ago. Call those people. If the advisor dodges this, walk.
Pricing & Timeline Questions
Get the total cost in dollars, not percentages. A 1% fee on a $100,000 portfolio is $1,000 a year. That's fine. But if they also charge hourly for planning or layer on fund fees, the real cost jumps. Ask how long the initial plan takes to build. If they say more than four weeks, they're either overbooked or slow. Move on.
Contract Questions
Read the termination clause before you sign. Can you fire them with 30 days' notice? Or are you locked in for a year? Also check if they own your accounts or you do. If the contract says they have discretionary trading authority, make sure you're comfortable with that. Never sign a contract with automatic renewal unless you can cancel online.
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