VIDEO: 5 Questions You Should Ask Your Financial Advisor

VIDEO: 5 Questions You Should Ask Your Financial Advisor

By Joe Dowdall, CFP®, RICP®, CRPC®, CCFC

Hiring the right financial planner is crucial for a comfortable retirement. In this video, Joe Dowdall, a seasoned financial advisor with 15 years of experience, shares the five key questions you need to ask to help you make the best choice for your financial future. Watch to learn more.

Transcript

Introduction: The Importance of Asking the Right Questions When Hiring a Financial Planner

Hello, my name is Joe Dowdall, and I’m a financial planner at Worth Asset Management. My focus is helping individuals nearing or already in retirement, with a particular emphasis on avoiding common tax pitfalls that can arise during retirement. Many people spend decades saving for retirement, and when the time finally comes to retire, they realize they need an expert to help guide them. However, many of these individuals haven’t had to hire someone before, and they aren’t sure what questions to ask.

After 15 years of experience in this field, I want to share with you the five essential questions I would ask if I were hiring a financial planner. These questions will help ensure that the planner you choose is the best fit for your needs.

Question 1: Are You a Fiduciary?

The first question I would ask is, “Are you a fiduciary?” This is an important question because fiduciary are legally obligated to put your best interests ahead of their own. This means that any advice or recommendations they make should benefit you first and foremost. This distinction is crucial because many financial advisors may not be fiduciaries and can make recommendations that benefit them, not necessarily you. Since your retirement savings, such as your 401(k) or IRA, maybe some of your largest assets, it’s important to make sure your advisor is acting in your best interest.

Question 2: What Credentials Do You Hold, and What Is Your Area of Focus?

Next, ask about their credentials and the areas they specialize in. As for me, I hold the Certified Financial Planner (CFP) designation, which not only makes me a fiduciary but also gives me the qualifications needed to help retirees navigate complex financial decisions. I focus on protecting retirees from tax pitfalls, something that’s vital when managing retirement savings. It’s important to understand the planner’s expertise and whether it aligns with your needs, especially if you have a specific financial focus, such as tax planning, investment management, or retirement income strategies.

Question 3: How Are You Paid, and What Are Your Fees?

Understanding how a financial planner is compensated is critical. Many people don’t realize how their financial planner gets paid or what the associated fees might be. It’s essential to know whether they charge a flat fee, a percentage of your assets, or earn commissions from the products they recommend. Transparency about fees should be a given. You should not have to ask this question—your financial planner should be upfront about how they get paid, what fees you’re responsible for, and whether there are any conflicts of interest involved.

Question 4: What Sets You Apart from Other Financial Planners?

There are many financial planners out there, so it’s a good idea to ask what sets them apart from others. Financial planners often have similar websites and marketing materials, but their approaches may differ significantly. Some planners focus on specific areas such as retirement planning, investment strategies, or tax planning. Others may have a unique approach to client relationships or offer specialized services. Understanding what makes the planner stand out will help you determine whether their approach aligns with your financial goals and values.

Question 5: What Should I Expect, and What Happens If I’m Not Happy?

The final question to ask is, “What should I expect from working with you, and what happens if I’m not satisfied with the service?” It’s important to set expectations early on. A good planner will provide you with a clear understanding of what services you’ll receive, how often you’ll meet, and how the relationship will evolve over time. Sometimes, despite the best intentions, things don’t work out, and you need to understand what the process is if you ever decide to part ways with your planner. Knowing whether there are any penalties or restrictions on ending the relationship can save you from any surprises later on.

Conclusion: Don’t Rush the Decision to Hire a Financial Planner

These five questions are just the start of the process, but they’re crucial for helping you make an informed decision when hiring a financial planner. This relationship is one you’ll hopefully have for many years, so it’s important that you feel confident and comfortable with your choice.

At my practice, we always encourage clients to take their time, reflect, and even discuss their options with a spouse or trusted confidant before making a final decision. It’s not a choice to rush into.

If you’re interested in discussing your situation and how I can help, feel free to reach out to me at 469-423-1989 or via email at joe@worthassetmgmt.com. I’m always happy to help with your retirement planning and tax strategies.

Additional Thoughts on Hiring a Financial Planner for Retirement

Retirement is an exciting time—many people look forward to the freedom and opportunities that come with it. However, deciding to hire a financial planner is an important step, especially for those nearing or entering retirement. Whether you’re looking to manage investments, create an income strategy, or simply reduce taxes, finding the right planner is critical to achieving financial peace of mind.

If you’re considering hiring a financial planner for the first time, be sure to ask the right questions. The answers will help you make an informed decision and give you the confidence you need to move forward with your retirement plan.