Key Questions to Ask Your Financial Advisor

A good financial advisor can be a game-changer for your financial future, but only if you ask the right questions. Whether hiring an advisor for the first time or reassessing your current relationship, knowing what to ask can help you maximize their expertise and ensure your financial goals are on track.

Here are five essential questions to ask your financial advisor.

1. What Is Your Investment Philosophy?

Many advisors take a unique approach to investing. Some prioritize long-term, passive investing, while others take a more active, hands-on approach. Understanding your advisor’s philosophy ensures it aligns with your risk tolerance, time horizon, and financial objectives. Ask them how they handle market volatility and whether they favor individual stocks, ETFs, mutual funds, or alternative assets.

2. How Are You Compensated?

Fee structures vary widely among financial advisors, and transparency is key. Some advisors charge a percentage of assets under management (AUM), while others work on a flat fee, hourly rate, or commission-based model. Understanding how your advisor gets paid helps you identify potential conflicts of interest and ensure their recommendations align with your best interests.

3. What Services Do You Offer Beyond Investment Management?

A great financial advisor does more than just pick investments for you. They should provide comprehensive financial planning, including retirement planning, tax strategies, estate planning, and risk management. If you own a business or have complex financial needs, ask if they offer specialized services tailored to your situation.

4. How Will You Customize My Financial Plan?

Your financial situation is unique, and your advisor should treat it that way. Ask how they tailor their recommendations based on your income, family situation, goals, and risk tolerance. A cookie-cutter approach won’t cut it—your advisor should proactively adjust your plan as your life circumstances change.

5. How Often Will We Communicate?

Regular communication is critical to a successful advisor-client relationship. Some advisors meet with clients quarterly, while others prefer annual check-ins or on-demand availability. Clarify how often you’ll receive updates, whether they provide ongoing education, and how they’ll keep you informed during market fluctuations.

The Bottom Line

A strong relationship with your financial advisor starts with asking the right questions. By understanding their approach, services, and communication style, you can ensure you get the most value from the relationship and stay on track toward your goals.

At Sandbox Financial Partners, we answers many of these questions and more on our FAQ Page (click here).

Ready to Take Control of Your Financial Future?

At Sandbox Financial Partners, we believe in transparency, personalized financial planning, and building long-term client relationships. Let's start a conversation if you're seeking expert guidance tailored to your financial situation. Contact us today to schedule a consultation and take the next step toward financial confidence.