What questions should I ask a financial advisor before hiring them?

Ask about all-in annual cost in dollars, every way they get paid, trailing commissions, products that pay them more, what they lose if you DIY with index funds, referral pay, whether you get a written one-page plan, the assumptions behind “on track,” a written playbook for a 30–40% drop, rules for sell/rebalance/sit still, this year’s tax moves, what they are skipping, how annual review works if advice is wrong, and whether you can leave cleanly with your plan.

What is a red flag when interviewing a financial advisor?

Common red flags include refusing to write all-in fees, calling themselves fee-only while dodging commissions, vague “we only recommend what’s best,” plans that live only in a portal, green “on track” scores with hidden assumptions, “we’ll see how you feel” in a crash, and exit fees or guilt when you try to leave.

Should I ask about fees in dollars or percentages?

Ask for all-in annual cost in dollars — advisory fee, fund expenses, platform fees, and trading costs — not just one fund’s expense ratio. A clear dollar figure or all-in percentage is a good sign; “it depends” without a number is a red flag.

Free interview checklist · Educational only

14 questions to ask a financial advisor (with red flags)

Bring this page. Write answers down. If they will not answer in plain English, that is an answer.

These questions help you interview the path after you own the retirement picture. They are educational — not personalized advice, and not a recommendation of any advisor.

Want the printable versions? The $39 kit includes buyer-reference and advisor sign-off checklists for these same 14 questions, plus the one-page retirement worksheet.

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Fees

1. What is my all-in annual cost in dollars — advisory fee, fund expenses, platform fees, trading costs — not just one fund’s expense ratio?

What good looks like: A clear dollar amount or all-in % (often under ~1% total for simple advice).

Red flag: “It depends,” only quotes one fund fee, or won’t write a number.

2. Who pays you, and how? Salary, AUM %, commissions, revenue share, referral fees? Show me every dollar path.

What good looks like: They map every pay source in plain English.

Red flag: “I’m fee-only” while dodging commissions, or refuses to put pay in writing.

3. Do you earn trailing (ongoing) commissions on any funds or products you recommend I keep holding — and how much per year in dollars?

What good looks like: Yes/no plus a dollar estimate, or “none.”

Red flag: “The fund company handles that,” or won’t quantify trails.

Conflicts

4. What products or platforms earn you more if I choose them? Name them.

What good looks like: A short honest list, or “none — same pay either way.”

Red flag: “We only recommend what’s best” with no names.

5. If I implement this plan myself with low-cost index funds, what do you lose?

What good looks like: They say what revenue goes away.

Red flag: Claiming they lose nothing while charging AUM, or guilt-tripping DIY.

6. Do you get paid — cash, gifts, or reciprocal referrals — for sending me to estate attorneys, CPAs, insurance agents, or other pros?

What good looks like: Yes/no and how much / what they get back.

Red flag: “We have a great network” with no pay disclosure.

The plan itself

7. Is my plan written on one page I can keep — targets, savings rate, withdrawal assumptions — or does it live only in your portal?

What good looks like: A printed one-pager you walk out with.

Red flag: “It’s in the portal” or “we’ll update you in meetings.”

8. When you say I’m “on track,” what exact assumptions are behind that (return, inflation, spending, Social Security, longevity)? Show the inputs.

What good looks like: They show the inputs and let you change them.

Red flag: A green score with no assumptions, or “our proprietary model.”

Bad markets

9. If markets drop 30–40% next year, what do we change — and what do we not change? Put it in writing now.

What good looks like: A written playbook before the crash.

Red flag: “We’ll see how you feel then” or panic-sell language.

10. What would make you tell me to sell, rebalance, or sit still? Give me rules, not vibes.

What good looks like: Pre-agreed rules (bands, dates, tax lots).

Red flag: “Trust my judgment in the moment.”

Tax & complexity

11. What tax moves are in this plan this year (Roth conversions, asset location, RMDs, charitable) — and which are optional vs. necessary?

What good looks like: A short list with optional vs. must-do.

Red flag: “We’ll optimize taxes” with no specifics.

12. What would you do differently if my taxes, equity compensation, or pension were simpler or more complex? What are you skipping?

What good looks like: They name what they’re not covering and why.

Red flag: One-size pitch for every client.

Accountability

13. What happens if your advice is wrong — do I own 100% of the outcome, and how do we review that each year?

What good looks like: “You own the outcome; I’ll put assumptions and an annual review in writing.”

Red flag: Blaming “the market” or the client.

14. Can I fire you, take my written plan, and leave without a retention pitch or exit fee?

What good looks like: Yes, clean exit, plan is yours.

Red flag: Surrender charges, guilt, or “you’ll regret leaving.”

Own the picture before the interview

FreeSolo’s DIY kit puts stand, goal, gap, and assumptions on one page so you walk into the meeting with a destination — not a blank stare. The free guide covers vetting before Contact forms and protecting your email from CRM spam.

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