Posted on: 21st February 2024

7 Questions to ask a financial adviser

Making important financial decisions on your own can be challenging. Working with a financial adviser is one way to make reaching your goals and objectives more straightforward.

But with so many financial professionals out there, you need to ask the right questions to find the right one for you.

In this article, we look at the key questions you should ask a financial adviser before hiring them and one important question you need to ask yourself.

First, let’s explore the role of a financial adviser.

What does a financial adviser do?

A financial adviser provides expert guidance and advice on a wide range of financial products and ways to better manage your money and reach your financial goals.

Financial advisers generally offer a range of services, such as:

• Retirement planning

• Helping you reach savings goals

• Cash flow planning

• Investment advice

• Tax planning

• Estate planning

To learn more about the perks of working with a professional adviser, read out guide on  the benefits of financial advice .

One question to ask yourself

Before we get to the questions you should ask a financial adviser, you first need to ask yourself: What type of help do I need?

This is an important question to ensure you hire the person best suited to your financial circumstances and objectives.

Are you looking for specific help, such as advice about investments or  how to plan for retirement ? If so, a financial adviser could be the way forward.

But maybe you are a high-net-worth individual (HNWI) or someone with a complex financial situation. In that case, you  may benefit from working with a wealth manager .

You should also be aware that, while there is some crossover, financial advisers are different to financial planners. Both offer slightly different services and cater to different goals.

Read our article on  the differences between financial advice and financial planning  to find out more.

Seven questions you should ask a financial adviser

Most financial services companies, like Holborn Assets, offer a free initial meeting with an adviser. This is your chance to ask them questions and decide if they are the right fit for you.

Here are the seven key questions you should ask a financial adviser during your first meeting (in no particular order).

1 – What services do you provide?

Are you looking for financial planning services, investment advice or help to develop a retirement plan?

Not all financial advisers offer the same services. That’s why  choosing a financial adviser  that provides the services you need is essential.

At Holborn Assets, our advisers cover all bases, offering a wide range of services such as:

• Investment advice

• Real estate investments

• Retirement planning

• Wealth management solutions

• General financial advice

2 – Who are your typical clients?

Most financial advisers will work with a broad range of clients, while some may work with a specific type of client. Prospective clients should ensure their adviser has the experience to handle their needs and financial situation.

3 – What is your investment philosophy?

Asking the right questions will help ensure your adviser’s investment style aligns with yours.

A good financial adviser should take your timeline, risk tolerance and goals into consideration and help you make investment choices accordingly.

Some questions to ask include:

• What is your approach to asset allocation and building a diversified portfolio?

• How will you adjust my investment strategy over time?

• What type of investments and products do you recommend?

4 – How will we work together?

It’s essential to establish expectations upfront about your professional relationship will work. This includes how you will communicate and how often.

This will often depend on your goals and the services you require. For example, some people may only require a one-time meeting. On the other hand, some may need an ongoing service with regular reviews of your financial picture.

Regardless, it is important that you know how things will work.

5 – What is your fee structure?

It’s essential to know upfront how the adviser gets paid and  how much the financial advice will cost . That way, there will be no unexpected charges along the way.

Financial advisers use a variety of fee structures. Some may use one type of fee structure, while others may use a combination depending on the service.

Some of the common types of fee structures are:

• A percentage commission based on the assets under management (AUM)

• Fixed fees for services

• Fees charged on an hourly basis

6 – Are you an independent financial adviser?

Financial advisers will fall into one of two categories – independent and restricted advisers.

As the name suggests, restricted advisers are limited in terms of the types of products they can offer. They may only offer products from certain providers or a single company.

An independent adviser can offer a range of products from across the market. They also provide advice that is unbiased and unrestricted.

You, as a client, will have more options and a broader range of products and solutions with an independent adviser. This is because the adviser should state what products have been considered when providing independent advice.

7 – What are your qualifications?

It goes without saying that you should make sure that the person you’re working with has the necessary credentials to provide financial advice.

Qualifications are required to give financial advice. They also provide an indication of the person’s level of expertise.

At Holborn Assets, advisers hold a minimum level 4 qualification with the Chartered Insurance Institute (CII), Chartered Institute of Securities and Investment (CISI) or the country equivalent.

Holborn Assets – financial advisers you can trust

The key to any successful relationship is communication. The same rule applies when choosing the right financial adviser.

Hopefully, the list of questions to ask a financial adviser above is enough to get you started. But don’t be afraid to ask additional questions that relate to you and the type of service you want.

Whatever area of your financial life you are looking to improve, we can help.

Holborn Assets is a leading, award-winning financial services company. We provide clients with tailored independent advice and support, helping them to secure their financial future.

Keep your financial plans on track and moving in the right direction with Holborn Assets.  Book a free, no-obligation meeting  today and learn how we can help you.

  Disclaimer:  You should not construe any information or other material as legal, tax, investment, financial, or other advice. Nothing contained in any material by Holborn constitutes a solicitation, recommendation, endorsement, or offer by Holborn. All products may not be suitable for all investors. Holborn may act as an introducer/facilitator of a product or service. Any decisions relating to the acceptance or rejection of any application for any such product will be the sole responsibility of the relevant party. Holborn cannot offer any guarantees and shall not be liable in any manner whatsoever in relation to this product or service.