What questions should you be asking when choosing a financial advisor?

CBS News

12-03-2025

Amid concerns over market turmoil and questions about what it means for your money, many experts say now is a good time to talk with your financial advisor.
But what if you don't have one? How do you choose the right financial advisor for you?
Leslie Gordon emailed [e-mail] with that question after she said she was scammed by someone she thought she could trust with her money.
"I am a victim of somebody who portrayed himself as a financial advisor," she said.
Gordon, a South Jersey native, relocated to Florida in 2020 to care for her aging mother who later passed. Gordon decided she wanted to invest the money she inherited.
She hired someone she thought she knew well enough from a local neighborhood Facebook group and, in total, transferred $30,000 to him to invest in CDs, or certificates of deposit.
But soon, she said she felt uneasy about his behavior when he started missing meetings and not answering calls. Eventually, he and her money disappeared. She later discovered the man had previously been fired from Morgan Stanley and filed for bankruptcy in 2018.
"I never thought I would get caught in something like this," Gordon said. "And yet I still got caught, and unfortunately, it's not for $300, or even $3,000."
What questions should you be asking?
Jamie Hopkins, chief wealth officer at Bryn Mawr Trust, said to start with someone whose credentials and experience align with your financial goals. Are you interested in investing, planning for retirement, managing cash flow, or something else?
People generally seek an advisor, Hopkins said, when they experience a big life event.
"You're leaving a job, you have a kid, you get married, you buy a house, you roll over a retirement account, or maybe you look out at the markets and say, 'Wow the markets have gotten really volatile in 2025 I want someone to help guide me through this,'" he said.
Check their specialties and experience
The term financial advisor is a catch-all. Most advisors will have specialties and professional designations.
"The main one that's out there is CFP, which is certified financial professional, and that's really the broadest financial advisor designation out there," Hopkins said.
An advisor might specialize in retirement planning, like an RICP, or retirement income certified professional, or in insurance, like a CLU, chartered life underwriter.
You can usually find an advisor's credentials listed after their name, like on Hopkins' Bryn Mawr Trust profile.
The Financial Industry Regulatory Authority (FINRA) has a glossary of professional designations.
Verify their qualifications
You can confirm an advisor's designations, how long they've been in business, and whether they've had any complaints against them using these online databases:
The Investment Advisor Public Disclosure database on the Securities and Exchange Commission's (SEC) website
Broker Check on the FINRA website
A designation, Hopkins said, isn't necessarily an indicator of their skill, but it's a place to start.
Consider compensation
Don't be afraid to ask, Hopkins said. Knowing up front how you will pay your advisor will minimize surprises later on.
Hopkins said many advisors in the industry base their fees on a percentage of the assets they manage for you. While others might charge a flat fee. Some work off commission.
"There's great commission advisors out there, but it leads to conflict," he said. "Typically, if you're looking for advice, you want what's best for you, not what's best for the advisor."
Other questions to consider
At the end of the day, you're looking for someone you can trust with your hard-earned money, so treat it like an important relationship and ask the tough questions.
"I actually tell people to ask about things like, what is your philosophy on planning and advice and if they don't really have one, that's not a great sign," Hopkins said.
He also advises asking the person if they've ever filed for bankruptcy.
"That might seem a little odd, but typically my stance is you probably don't want somebody running your money that hasn't been able to manage their own," he said.
Red flags
Hopkins said someone who isn't clear about their fees or transparent about their fiduciary duty to you should give you pause.
Additionally, someone who makes big promises or guarantees about returns can also be a red flag because the reality is that all investments have some level of risk.