Hiring a financial advisor is a big decision. After all, you’re hiring someone to help guide you through some of life’s biggest decisions.

Your financial advisor can help you decide what type of car and house you can afford. You’ll go to them to make sure you’re saving enough for your children’s college education. You’ll even seek their advice on the best way to build long-term wealth and save for your retirement.

Needless to say, choosing a financial advisor isn’t a decision you should make lightly or quickly.

That’s why I’ve included 8 questions you should ask a financial advisor before you hire them below:

1. WHO IS YOUR FIRM’S TYPICAL CLIENT?

Some of the best financial advisors in the industry specialize to help a certain type of client. At Physician Wealth Services, I only work with physician and physician families.

2. HOW DO YOU GET PAID?

Believe it or not, this is one of the most important questions you could ever ask a financial advisor. The reason is that there is a huge difference between financial advisors who are fee-based and fee-only. Fee-based financial advisors sell products and charge commission, and for that reason, it’s very hard for them to separate their own interests from their clients’ best interests.

3. WHAT LICENSES DO YOU CARRY?

There are many different types of licenses a financial advisor can show you to prove that they are allowed to give you financial advice.

4. HOW DO YOU ENSURE YOUR CLIENTS ARE PROTECTED FROM FRAUD?

Because of the recent Equifax hack, it’s more important than ever to ask how to protect your finances from fraud.

5. DO YOU CONTACT YOUR CLIENTS BEFORE MAKING CHANGES IN THEIR PORTFOLIO?

This is a great question to ask, mostly because people have different preferences. Some people want their advisors to manage their finances for them 100%, balance their portfolios for them, and purchase the funds they think are best on their client’s behalf. Other people like to be informed before changes happen.

To see the other three questions you should ask a financial advisor before hiring them, check out the full post on the Physician Wealth Services blog HERE

Do you have a financial advisor or are you currently looking for one? What are some of the qualities you are looking for in a financial advisor?