Questions to ask a financial advisor before you hire one

This article covers the questions to ask a financial advisor before you hire them, so nothing is a surprise once you go ahead with the advice.

A good advisor introduces their firm and experience, runs a proper fact find before explaining their fee structure clearly, therefore answering most of your questions. The questions set out here are a good fall back position to help steer the meeting.

What happens before you even meet an advisor

If you have come through a service like Regulated Advice, some of the groundwork is already done. An agent will have asked your age, what advice you want, and if it is about pensions, how many you have, their value, the providers, and when you want to retire.

An agent writes that information into a short case study and sends it to the advisor before the meeting. Whether that is face to face or over Teams. It means the first conversation starts from something, rather than nothing, and gives the advisor time to research the providers you already have.

Questions to ask a financial advisor

• How long have you been advising, and what areas do you specialise in?
• Will you be the person managing my case going forward?
• What does the fact find involve, and how long does it usually take?
• How do you charge, flat fee, percentage, or ongoing charges, and can I have that in writing?
• Is the letter of authority signed electronically or on paper?
• What is the rough timeline once the letter of authority is signed?

This client needs two things running in parallel: a consolidation and investment strategy for the assets she already holds, and a plan ready to activate the moment probate completes and the inheritance lands. The advisor should map out how the drawdown, ISAs, and Vanguard funds sit together before recommending any changes, then agree the 0.25% ongoing fee in writing.

With an inheritance of this size, estate planning conversations, trusts, gifting, and inheritance tax exposure, should start now rather than after the funds arrive, and the step son in law's role in the meeting is worth clarifying early given the scale of the sums involved. 

In short: a good advisor introduces their firm and experience, runs a proper fact find before mentioning fees, explains charges clearly, and only asks for a letter of authority once you are ready to proceed.

If any of those steps get skipped or rushed, the questions above are an excellent fall back position to help steer the meeting and strengthen your understanding.