Choosing a financial advisor isn’t just about finding someone to manage your investments—it’s about finding someone you can trust with your future. But let’s face it: the finance world can feel like a maze of buzzwords and fees that aren’t always easy to understand. That’s why it’s essential to ask the right questions to get clear, straightforward answers. Here are seven must-ask questions to help you make an informed decision about your financial advisor—and make sure you’re getting the advice you deserve.
1. Tell me more about yourself and your team
Think of this as a “who’s behind the curtain” moment. Ask about your financial advisor’s qualifications and experience—do they have licenses and certifications to back up their expertise? Find out if they’ll be working alone or as part of a team, and if they work with larger institutions to keep your investments safe. If it’s a team effort, know who your main point of contact will be. Bonus points if you can uncover whether their firm has anything to hide, like regulatory penalties.
2. What’s your investment style?
Every advisor has their own style, from aggressive traders to steady, long-term planners. Make sure their approach matches your comfort level. Ask about how they allocate investments between stocks, bonds, or other assets and whether they favor certain sectors or regions. Do they need your approval for every trade, or do they manage everything behind the scenes? Understanding their approach will give you a clearer picture of what to expect in your portfolio.
3. What investment performance can I expect?
Let’s be clear: no advisor has a crystal ball. What they can offer is realistic expectations based on historical performance. Ask how they set benchmarks and how often they’ll report performance against them. It’s about setting the right expectations—investing is a long game, and knowing what to expect over time helps keep you on track.
4. Do you provide financial planning?
A great financial advisor goes beyond picking stocks—they’ll also help you with comprehensive financial planning. Ask about retirement strategies, estate planning, and tax-saving tips. See if they provide detailed financial reports and how often those plans are reviewed. Some advisors charge extra for planning services, so it’s good to know up front what’s included in your relationship.
5. How do you tailor strategies for high-income individuals and business owners?
High-net-worth individuals and business owners in Canada have unique financial challenges and opportunities. Ask your financial advisor how they’ll optimize tax strategies, manage cash flow, and plan for business succession or estate transfers. It’s crucial to understand how they’ll help you balance personal and business wealth, minimize tax burdens, and protect assets while planning for long-term growth. You want to ensure their advice aligns with your goals, including retirement plans, investment strategies, and any charitable giving or legacy planning you envision.
Why These Questions Matter
These questions aren’t just about finding a good fit—they’re about ensuring you understand what you’re getting into. Ask for responses in writing, so both you and your advisor are on the same page. If anything feels unclear, ask again. It’s your money, your future, and you deserve answers you can understand. A great financial advisor will welcome these questions—because at the end of the day, they should want what’s best for you, not just what helps them meet quotas.
Don’t settle for vague answers or promises. Armed with these questions, you’ll be better prepared to find an advisor who matches your goals, communicates clearly, and helps you build the future you want—without any financial surprises along the way.
