Questions To Ask When Looking For A Financial Advisor.

It is a key part of a successful financial plan.

Jennifer Thompson
Financial Independence / Retire Early
4 min readSep 29, 2021


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Source. Canva

Choosing a good advisor is key to your overall financial well-being. A study done by the investment firm, Vanguard, shows that working with a financial advisor can increase your investment returns by 3%. Russell Investments puts it closer to 3.75%

But what makes for a good advisor? Whether you’re looking for an advisor or are working with one, here are some questions to ask yourself about your financial advisor:

Is She A Good Listener?

There is more to an advisor than superior returns. Is your advisor an effective listener? Do you feel heard and understood when talking to your advisor?Does she know what truly matters to you? Or is she more interested in selling to you? Women report that their advisors would often address their husbands during meetings while completely ignoring them. Does that happen to you?

How Is She Compensated?

Most advisors receive compensation, not from the advice they provide but from the products they sell. Compensation may come in the form of commissions or a fee. This commission is not a flat rate but varies according to what you purchase.

Generally, an advisor is paid a higher commission for selling stocks than for selling term deposits. Insurance advisors are paid a higher commission on universal life than on term life insurance. Advisors that are fee-based, charge according to a percentage of the value of the assets she is managing for you.

Is She Objective?

Do you notice your advisor persuading you to purchase something that may not be aligned with what you