7 questions for your first meeting with an advisor

Getting – and taking – great advice can make great things happen.

But how do you know if a financial advisor is a good fit for you? And how do you know if you’re getting the best advice? A responsible advisor won’t get to give you guarantees. You’ll need to build up trust.

Before you commit to working with an advisor, you’ll want to know them: who they are, what they do, and what you can expect from working with them. And they’re going to want to know about you, too, so they can support you in achieving your short- and long-term financial goals.

Here are some questions to get the conversation started.

1. “Why do you do what you do?”

What motivates your advisor? What drives them? The best advisors can tell you why they do what they do in a way that’s meaningful to you.

2. “What financial services do you provide and what qualifications do you have?”

An advisor can answer your financial questions. For example, they could tell you about ways to save, like registered retirement savings plans (RRSPs) and tax-free savings accounts (TFSAs). Or about which type of insurance is best in which situation. They can also answer other questions about investment or insurance options.

Different types of advisors have different qualifications. One of the top professional standards is the Certified Financial Planner® (CFP) designation. This means they’ve completed coursework and written a certification exam. (Please note that all advisors – not just CFPs – are required to follow ethical standards. They must put your interests ahead of their own.)

The first time you speak to an advisor, ask about their area of focus and qualifications. For example, ask:

• • • How long have you worked as an advisor?
    • What are your credentials? And what do they mean?
    • Are you also a CFP?
    • How long have you worked with your current company, or on your own?
    • What areas do you focus on? (For example: retirement savings, insurance, estate planning, small businesses, etc.) And how many years do you have in each of your areas of focus?
    • What is your investment philosophy?

Many advisors will have certifications and qualifications based on their areas of focus and the services they provide. If you need advice they can’t offer, they might refer you to another advisor with relevant experience.

Asking about an advisor’s investment philosophy can help you see if their approach is a good fit.

3. “Do you work with other Clients like me?”

Most Clients like to work with someone who understands their situation. Knowing an advisor’s Client base is another way to discover if they’re right for you.

You can ask the advisor:

• • • What is your typical Client base?
    • How many Clients do you work with? And if you’re willing to share this information: what is your retention rate?
    • What’s the average in terms of net worth, life stage or situation?
    • How do you define and measure success?
    • Do you have any testimonials I can review?

Perhaps you’re just starting to save. Maybe you’re looking for protection as you expand your family. Or maybe you have a large or complicated estate that includes a blended family or a family business.

Whatever your personal situation, you may find yourself more comfortable with an advisor who has experience working with people like you. Also, understanding an advisor’s criteria of success can ensure alignment with your goals.

4. “How will we work together?”

It takes a lot to trust someone enough to give you financial advice – and to take that advice. Knowing what to expect can help you build that trust.

A good advisor can explain the process or journey they will follow with you. You’ll also want to know how to stay in touch and how often they’ll contact you. This may mean meeting face-to-face or online every few months. Or you may just meet once a year to look over your plan and see how you’re doing.

Typically, advisors will look at various factors in your life. They’ll consider things like your age, health, lifestyle, work, business and spending habits. They’ll ask you about your short- and long-term goals. What is your family situation? Do you want to buy a home, or a second property? When do you want to retire? This information allows them to show how different scenarios could impact your planning.

Remember, great advisors customize their advice to suit your unique needs and goals.

5. “How do you get paid? What are your fees?”

Advisors can be paid by commission, by a fee for their services, or by a combination of both.

You can also ask an advisor about any fees involved with their services or the products they’re selling. For instance, some investments, like mutual funds, charge management fees. The advisor or representative selling the investment receives a portion of these fees. In the case of insurance, advisors typically receive a commission from the insurer, not you.

Here are more questions about compensation to ask an advisor:

• • • Do your fees vary depending on what type of insurance or investment product I buy? How does that work?
    • What happens to your fees if my investments lose value?

6. “What commitments are you making to me?”

An advisor must show the value they provide and then consistently deliver on what they say they will do. Ask a prospective advisor: How will you help me meet my goals?

The advisor’s answer must reassure you that they’ll build their advice based on what’s important to you before they consider or propose solutions. Essentially, the solutions you’ll buy from them will be a result of the trust you have in their advice.

It can also be reassuring to find out what will happen to your account if the advisor leaves their current place of business.

7. “What resources can you provide to help me stay informed?”

Your advisor may be able to share reports and other information with you, including online resources like articles with actionable insights and free webinars.

Questions an advisor may ask you

Getting ready for your first meeting with an advisor? You’re not the only one with questions.

Think of your first meeting as a discovery session. At this point, you haven’t hired them or bought anything through them. It’s simply a conversation. They’ll learn more about you and your personal goals. And you’ll find out more about them.

Together, you’ll figure out whether they can help you achieve your goals.

Here are some questions an advisor may ask you:

• • • What are your short- and long-term goals?
    • What’s important to you?
    • How do you define financial success?
    • What financial assets (e.g., a home, a car, investments) do you want to protect?
    • Do you currently have a financial plan?
    • Have you worked with an advisor before?

You may have to interview more than one advisor to find a person who’s compatible with you. And that’s okay. It’s important to take the time you need to ensure you’re getting advice from someone with whom you feel comfortable.

Your first step: How an advisor can help you start the conversation

If this feels like a lot to think about or to remember – it doesn’t have to be.  You could start by a taking a small step, like reaching out to an advisor near you.

Advisors can help, even if you feel unsure or unprepared. An advisor can support you in finding answers – even if that simply means figuring out what questions you want to ask.