01 · Practical guidance
Verify the person and firm
Investor.gov recommends confirming that a financial professional is registered and reviewing background information even when the referral came from someone you trust. Check registration, licenses, employment history, disclosures, complaints, and disciplinary events through official records.
Verify
Collect the current price, terms, and constraints.
Compare
Put realistic alternatives on the same basis.
Act
Choose the next move and document the follow-through.
02 · Practical guidance
Define the service relationship
A title alone does not define the service. Ask whether the relationship involves brokerage services, investment advisory services, or both, and how responsibilities change in each setting.
- Who is my primary contact and who makes recommendations?
- Which planning, investment, tax-coordination, insurance, or estate-coordination services are included?
- How often will we meet and how often will the account be monitored?
- What events trigger outreach or a plan update?
- Where will assets be held and how will I view them independently?
03 · Practical guidance
Make fees and conflicts concrete
Ask the professional to show, in dollars and percentages, what you and the account could pay during a representative year. Include advisory fees, planning fees, fund expenses, transactions, custody or platform costs, insurance compensation, referrals, and exit charges.
A strong decision is not just cheaper. It is complete, usable, documented, and ready to carry out.
04 · Practical guidance
Understand how the relationship ends
Review cancellation notice, prorated fees, transfer costs, surrender charges, proprietary products, tax consequences, document access, and who helps move the assets. Do not rely on a verbal description when the written agreement controls.
Your action plan
Make the next move without reopening the research.
- Verify the firm and professional through Investor.gov.
- Download and read Form CRS and detailed disclosures.
- Send the same written questions to each candidate.
- Request a one-year fee example in dollars and percentages.
- Ask for conflicts, third-party compensation, custody, and service frequency in writing.
- Review the agreement and exit terms before signing or transferring assets.
Questions people ask
Common questions, answered directly.
What is the first question to ask an advisor?
Confirm whether the person and firm are registered, then use official records to review their background and disclosures.
Should I ask whether an advisor is a fiduciary?
Yes, but also ask when that obligation applies, which services are being provided, how conflicts are handled, and what the written agreement and disclosures say.
Can I rely on professional titles or designations?
No title alone explains registration, services, compensation, or conduct obligations. Verify each credential and the person’s official record.
Primary resources
Verify availability and terms at the source.
Use these independent primary resources to confirm rules, availability, and current details: