Most people pick a financial advisor the same way they pick a takeout spot: a quick Google search and a hope. That's a decent way to end up with mediocre advice and a portfolio that doesn't fit your life. Here's what actually matters when you're about to hand someone the keys to your money.
Licensing & Insurance Questions
Ask straight up what licenses they hold. Series 65 or 66 means they're a fiduciary — legally required to act in your best interest. Series 7 without those? They can sell products, not give advice. That's a different conversation. Also ask about errors and omissions insurance. If they don't have it, you're one bad trade away from a lawsuit with no payout. Walk.
Experience & References Questions
How long have they actually done this? Five years of market chaos teaches more than twenty years of a bull market. Ask for three client references who have been with them through a downturn. Not just recent happy clients. Call those people. Ask what the advisor did when the market dropped 20%. If they say 'stayed the course,' push for specifics. If they can't name a single bad call they made, they're either lying or haven't made enough decisions.
Pricing & Timeline Questions
You need to know two numbers: what they charge and how often they adjust your plan. Flat fee, assets under management, or hourly? Each has a different conflict of interest. Hourly is cleanest for a one-time plan. AUM can be fine if you're above a certain threshold, but a 1% fee on a $500k portfolio is $5k a year. That's real money. Timeline: how often do you meet? If they say 'we'll touch base annually,' that's code for 'you'll forget about us.' Quarterly is standard. Monthly is for people who can't stop tinkering.
Contract Questions
Read the termination clause. Can you fire them with a 30-day notice? Some contracts lock you in for a year or charge a penalty. That's a red flag. Also check if they can change fee structures without your sign-off. If they can, don't sign. And ask who owns your account if you leave. Some firms keep your data, which is a pain. You want portability. If they balk at any of these, thank them for their time and move on.
Before you sign anything, compare local financial advisors on RatingsNearMe to see how real clients rate them.