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Financial Advisor Hiring 101: What to Ask When Hiring For Your Business

Selecting the right financial advisor for your business is one of the most important decisions you make. The gap between a good and a bad advisor is so vast, that you’ll either benefit from their financial plans or get left in the dark hurting your business and family financially. 

A professional financial advisor is hired to create financial plans and budgets for you and your business. Good financial advisors provide you the confidence you need to make important decisions for your business. The wrong advisor charges you extra, without providing you high-quality service creating doubts over your future.

It’s a crucial decision! Therefore, I have created a list of key questions to help you decide if you are hiring the right financial advisor or not. 

Question 1: How are Your Compensated?

Financial advisors can be paid fees, commissions, and sometimes both. Commission based compensations can turn out to become expensive as you will be charged for every investment you make. Be careful with advisors that aren’t independent and are employed by companies. Such people are more focused on selling you financial products then they are to provide you with an effective financial plan. With every product they sell, they will receive a commission from both sides.

Question 2: How Many Clients do You Work With?

Before hiring a financial advisor, you should know how many clients they serve. You wouldn’t want someone who doesn’t actually have enough time to come for a visit or take your calls. Advisors who provide services to several clients at once are simply too busy to give you the attention you need. Such people are more responsive to those clients that either pay more or are interested in purchasing financial products which generate high commissions.

Question 3: What Happens to Me If Something Happens to You?

If your advisor goes on a vacation, or is involved in an accident and is unable to perform his duties, who will serve you? You need to know how much of the plans created by the advisor are documented or stored in a system that can be understood by his successor. Good financial planners have a habit of keeping an updated backup of all your financial goals and objectives and transferring them either to you or the succeeding planner. 

Question 4: Can You Describe the Type of Clients You Work With?

It’s better to know more about the clientele of the advisor before hiring them. There are many professions, and some financial advisors are more comfortable in providing services to specific people. For example, if you find an advisor who has mostly worked with doctors, then they may not be able to provide you with good advice regarding your business. You need to find financial planners that are aware of all financial products that you can invest in and provide you with plans for saving for a better future.

Question 5: How Qualified are you?

Financial advisors come from various educational backgrounds. However, you can’t trust people who became advisors by passing and taking weekend courses. A few credentials you can trust in this industry are; CFP, CIMA, and CFA. Individuals who have either one of these qualifications have gone through extensive studies to become professional financial advisors that can be trusted. 

Warp Up

Though there may be many more questions you would like to ask a financial advisor before hiring them for your business, the ones listed above should clear most of your doubts. Feel free to ask anything else which you would like to know, but make sure you take your time and do your homework before finalizing one.

Grace White
Grace White
A writer by passion, a reader by choice! Grace is a blogger who loves to travel and write about all sorts of industries to share her expertise with the world.


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