Questions to Ask a Financial Advisor Before Picking One
The financial advice industry is full of people who call themselves advisors. Most are only investment managers. Many are not legally required to act in your interest. Here are the ten questions that separate the ones worth hiring from the ones worth avoiding.
By Sanjay Pamurthy, CFP® & Devin Talbot, MBA | Artham Advisors | June 2026
Before we start, we'd like to offer this — picking a financial advisor can be the most expensive decision you make. Even a reasonable one can cost $15,000 per year. An unreasonable one can cost a physician with a $5M nest egg upwards of $50,000. So the next five minutes of your reading time are immensely valuable.
The word "financial advisor" is not regulated. Anyone can use it — a commissioned insurance salesperson, a stockbroker who earns money when you buy products, or a fiduciary planner who is legally required to act in your interest. They are not the same thing, and telling them apart takes asking the right questions.
High earners — physicians in particular — are disproportionately targeted by advisors whose compensation depends on selling products rather than giving advice. The stakes are high: a physician who pays 1% per year in unnecessary advisor fees on a $2 million portfolio loses more than $400,000 in wealth over 20 years at a 7% return. Getting the relationship right matters.
A note on this page: We are Artham Advisors, an independent, fee-only, fiduciary financial planning firm based in Dallas, TX. We are sharing these questions because before we were financial advisors, we were spouses of physicians, and we sat in on a lot of advisor pitches. We want every person to have a fair shot at finding an advisor who will work for them, not off them — whether that turns out to be us or someone else.
The Three Non-Negotiables
Before asking a single question, disqualify any advisor that doesn't meet all three of these criteria. Simply move on.
Criteria | Why It Matters |
|---|---|
Meaningful credentials | CFP (Certified Financial Planner), CFA (Chartered Financial Analyst), CPA/PFS (Personal Financial Specialist), and ChFC (Chartered Financial Consultant) all require rigorous exams, ongoing education, and adherence to a code of ethics. Credentials with no standardized training are not equivalent. |
Fee-only | "Fee-only" means the advisor is compensated exclusively by fees you pay — no commissions, no referral fees, no payments from fund companies or insurance carriers. "Fee-based" sounds similar but is not: fee-based advisors can also earn commissions. The difference is significant. |
Fiduciary — always | A fiduciary is legally required to act in your best interest at all times. Many advisors are only fiduciaries "sometimes" — when acting in a certain capacity. That gap is where conflicts hide. You want 100%, all-the-time fiduciary commitment. |
Before we start, we'd like to offer this — picking a financial advisor can be the most expensive decision you make. Even a reasonable one can cost $15,000 per year. An unreasonable one can cost a physician with a $5M nest egg upwards of $50,000. So the next five minutes of your reading time are immensely valuable.
The word "financial advisor" is not regulated. Anyone can use it — a commissioned insurance salesperson, a stockbroker who earns money when you buy products, or a fiduciary planner who is legally required to act in your interest. They are not the same thing, and telling them apart takes asking the right questions.
High earners — physicians in particular — are disproportionately targeted by advisors whose compensation depends on selling products rather than giving advice. The stakes are high: a physician who pays 1% per year in unnecessary advisor fees on a $2 million portfolio loses more than $400,000 in wealth over 20 years at a 7% return. Getting the relationship right matters.
A note on this page: We are Artham Advisors, an independent, fee-only, fiduciary financial planning firm based in Dallas, TX. We are sharing these questions because before we were financial advisors, we were spouses of physicians, and we sat in on a lot of advisor pitches. We want every person to have a fair shot at finding an advisor who will work for them, not off them — whether that turns out to be us or someone else.
The Three Non-Negotiables
Before asking a single question, disqualify any advisor that doesn't meet all three of these criteria. Simply move on.
Safe Harbor | Suggested Starting Coverag |
|---|---|
→
The Ten Questions to Ask
Bring this list to every advisor interview. The answers — and the confidence with which they are delivered — will tell you most of what you need to know.
1
"Are you a fiduciary, 100% of the time?"
✓ What to Hear
A clear, unqualified yes. Some advisors will say "I act as a fiduciary when providing investment advice" — which leaves room to not act as a fiduciary in other contexts, including when recommending insurance products.
⚠ Watch Out For
Hedged language like "in most situations" or "when acting as an investment advisor." Ask them to sign a fiduciary oath in writing if you want confirmation that goes beyond words.
2
"How exactly are you compensated? All sources."
✓ What to Hear
A transparent, complete answer: "I earn X% of assets under management, paid quarterly by clients. I receive no other compensation." Or: "I charge a flat annual fee of $X. I earn nothing else." No commissions. No referral fees. No revenue sharing with fund companies.
⚠ Watch Out For
Vague answers, deflection, or the phrase "I'm compensated in a variety of ways." Also watch for "I'm fee-based" — this is not the same as fee-only. Fee-based advisors can earn commissions on top of fees.
3
"What are your credentials, and what do they require?"
✓ What to Hear
CFP, CFA, CPA/PFS, or ChFC — each backed by a rigorous exam and ongoing ethics requirements. A CFP is specifically designed for comprehensive financial planning and requires a fiduciary standard. CFAs have a deeper background in investment management. CPAs are steeped in tax and accounting law — and many CPAs are also CFP professionals, because tax strategy is a core financial planning element.
⚠ Watch Out For
"Certified Retirement Planning Counselor," "Certified Wealth Manager," or other designations with no standardized national exam or ethics requirement. The financial industry has more than 200 professional designations — many are marketing titles, not credentials.
4
"Do you have experience working with clients in my situation?"
✓ What to Hear
Specific examples: "About 60% of my clients are attending physicians. We commonly help with 403(b)/457(b) coordination, backdoor Roth IRAs, student loan strategy, and practice structure." A physician's financial situation — high income starting late, significant student debt, complex compensation, insurance needs — is genuinely different from a typical client's.
⚠ Watch Out For
Generic answers ("I work with high-income professionals"). Ask for concrete examples of the specific issues you face: PSLF, contract negotiation, medical practice structure, or whatever applies to your situation.
5
"What does your fee cover? What is not included?"
✓ What to Hear
A clear scope of services: investment management, tax planning, retirement projections, insurance review, estate planning coordination, and ongoing meeting cadence — with clarity on what requires additional engagement or referral.
⚠ Watch Out For
Vague service descriptions or a fee that only covers investment management when you have broader needs. The most expensive advisor is often the one who handles your portfolio but leaves tax and estate planning to chance.
6
"What is your investing philosophy?"
✓ What to Hear
Low-cost, diversified, passive or evidence-based investing. Something like: "We believe in broad market exposure through low-cost index funds, appropriate asset allocation for your timeline and risk tolerance, and minimizing taxes and fees." White Coat Investor and the Bogleheads community are aligned on this approach.
⚠ Watch Out For
Heavy emphasis on stock-picking, market timing, actively managed funds, or "proprietary strategies." High-cost investment products are where advisors who earn commissions make their money — and where clients lose it.
7
"What are the total costs I will pay — advisor fees plus investment costs?"
✓ What to Hear
A clear total: advisory fee (e.g., 0.75% AUM or $8,000 flat) plus average expense ratio of funds used (e.g., 0.05–0.10% for index funds). Total annual cost should ideally be under 1% of assets.
⚠ Watch Out For
Advisors who only quote their fee without discussing underlying fund expenses. A 1% advisory fee on top of 0.75% in actively managed fund expenses is 1.75% per year — a significant drag on long-term returns that compounds to a very large number over a career.
8
"Do you or your firm receive any compensation from third parties?"
✓ What to Hear
"No." Full stop. No referral fees from attorneys or CPAs. No revenue sharing with custodians. No 12b-1 fees from mutual fund companies. No commissions on insurance products.
⚠ Watch Out For
Disclosures buried in fine print, or answers referencing "soft dollar" arrangements, platform fees paid by fund companies, or referral relationships. Ask them to show you their Form ADV Part 2 — it is a legal document that must disclose all conflicts of interest.
9
"How many clients do you have, and how will we communicate?"
✓ What to Hear
A manageable client load — typically under 100 clients per advisor for comprehensive planning — and a clear meeting cadence: at minimum an annual review, with availability for questions in between. You want to be a meaningful relationship, not a name in a database.
⚠ Watch Out For
Advisors with hundreds of clients, or those who cannot describe a consistent communication process. If they are hard to reach before you are a client, they will be harder to reach after.
10
"Would you be willing to sign a fiduciary oath in writing?"
✓ What to Hear
Yes, without hesitation. The National Association of Personal Financial Advisors (NAPFA) provides a standard fiduciary oath. An advisor who is genuinely operating as a fiduciary should have no objection to putting that commitment in writing.
⚠ Watch Out For
Resistance, deflection, or claims that it is "not standard practice." It may not be universal — but it is reasonable to ask, and a no is informative.
Red Flags: When to Walk Away
Beyond the ten questions, these are patterns to recognize and exit quickly:
→ See also:
They lead with insurance products. Whole life insurance and annuities are among the highest-commission products in financial services. An advisor who recommends these early in the relationship — before doing a comprehensive review of your situation — is almost certainly being compensated to do so.
They are reluctant to show you their Form ADV. Every registered investment advisor is required to file Form ADV with the SEC. It discloses compensation, conflicts of interest, disciplinary history, and services. An advisor who resists sharing it is hiding something.
They use urgency or fear to drive decisions. "This opportunity is only available through end of month." "The market is about to drop — we need to act now." Urgency that bypasses deliberation is a sales tactic, not financial advice.
They cannot explain what they charge in plain language. Complexity in fee disclosure benefits the advisor, not the client. If you cannot get a clear, simple answer to "what will I pay you this year," move on.
Their investment recommendations keep changing. A genuine long-term investment philosophy does not change with headlines. High portfolio turnover — frequent buying and selling — often benefits an advisor far more than a client.
→
How to Verify Any Advisor Before You Commit
Two free government tools give you access to an advisor's full regulatory history. Run both searches before the first meeting, not after. A complaint history or disciplinary action does not automatically disqualify an advisor — but it changes the questions you need to ask.
Search any broker or brokerage firm by name. Displays employment history, licenses, regulatory actions, and complaints. Required reading before meeting with any broker-affiliated advisor.
Search registered investment advisors and access their Form ADV. Part 1 covers the firm; Part 2 is the brochure that must disclose services, fees, and conflicts of interest in plain language. Read both.
→
Where to Find Fee-Only Fiduciary Advisors
If you've made it this far and want to search beyond Artham, three registries are the starting point for finding advisors who meet the fee-only, fiduciary standard:
— The National Association of Personal Financial Advisors. Membership requires fee-only compensation and a fiduciary pledge. The highest standard in the industry.
— Fee-only advisors who offer hourly planning — useful if you want advice on a specific question without a full ongoing engagement.
— Fee-only advisors who often specialize in younger clients, subscription-based pricing, and specific professions. A growing number of physician-focused advisors are members.
→
Still Have Questions About What to Look For?
We offer a free consultation — not a sales call. Bring this list. Ask us every question on it. We will answer all of them, including the ones about our own fees, credentials, and how we are compensated.
Artham Advisors is fee-only and fiduciary. We work exclusively with physicians, executives, and small-business owners. We charge flat fees and AUM-based fees — no commissions, ever.
No sales pitch. No products to sell. Just a conversation about whether we are the right fit.
Frequently Asked Questions
A fiduciary is legally obligated to act in your best interest at all times. A non-fiduciary (such as a broker operating under the "suitability standard") is only required to recommend products that are "suitable" for you — even if better, lower-cost alternatives exist. The gap between these two standards is where a significant amount of financial harm occurs. Always work with an advisor who is a fiduciary 100% of the time.
"Fee-only" means the advisor is compensated exclusively by fees paid directly by clients — no commissions, no referral payments, no revenue sharing with fund companies or insurance carriers. Fee-based advisors can also earn commissions, which creates a conflict of interest when recommending products. The distinction matters because the products that earn advisors the highest commissions — whole life insurance, variable annuities, actively managed funds — are often not the best choices for clients.
No. "Financial advisor" is an unregulated title that anyone can use. CFP (Certified Financial Planner) is a credential that requires completing a rigorous education program, passing a national exam, accumulating supervised planning experience, and adhering to a code of ethics that includes a fiduciary standard when providing financial planning services. Not all financial advisors have a CFP, and a CFP certification does not automatically mean the advisor is fee-only.
Start with the NAPFA registry at napfa.org, which requires fee-only compensation and a fiduciary pledge. Also search the XY Planning Network (xyplanningnetwork.com) and Garrett Planning Network (garrettplanningnetwork.com). White Coat Investor and Physician on FIRE both maintain lists of physician-focused advisors. Interview at least two or three before committing, and ask every question on this list.
A reasonable fee range for comprehensive financial planning is 0.5–1.0% of assets per year for AUM-based advisors, or $4,000–$12,000 per year for flat-fee arrangements. Hourly rates typically run $200–$500 per hour. Add the expense ratios of the underlying investments — good advisors use low-cost index funds averaging 0.03–0.15% — and total annual cost should ideally stay below 1% of assets. Higher fees are not wrong, but they require justification through demonstrated value.
Yes — at minimum, interview two or three. The interview process itself is informative: how an advisor responds to direct questions about compensation, conflicts, and their investment philosophy tells you more than any marketing material. An advisor who is confident in their approach will welcome the scrutiny. One who deflects or becomes defensive is showing you something important.
Form ADV is the registration document that registered investment advisors must file with the SEC. Part 1 contains the firm's business information. Part 2 — the brochure — must disclose in plain language the advisor's services, fee structure, investment approach, disciplinary history, and any conflicts of interest. You can find any advisor's Form ADV at adviserinfo.sec.gov. Read Part 2 before your first meeting. Pay particular attention to the "Fees and Compensation" and "Conflicts of Interest" sections.
Further Reading & Sources
-
White Coat Investor: 12 Questions to Ask Before Hiring a Financial Advisor
-
White Coat Investor: How to Choose a Financial Advisor
-
Physician on FIRE: Why Fiduciary Duty Matters
-
Kitces: Is Any Advisory Fee Model Truly Conflict Free?
-
FINRA BrokerCheck — brokercheck.finra.org
-
SEC Investment Adviser Public Disclosure (Form ADV) — adviserinfo.sec.gov
Related Artham Advisors Content
Disclosure: This article is for educational purposes only and does not constitute personalized financial, legal, or tax advice. The questions and criteria described reflect our views on best practices and are not a guarantee of advisor quality or performance. Artham Advisors LLC is a registered investment advisor (SEC disclosure). Registration does not imply a certain level of skill or training. Past performance is not indicative of future results. Please conduct your own due diligence before engaging any financial advisor.