12 Investment Management Questions to ask a Financial Advisor

Want to better understand the way a financial advisor thinks about their investment strategies? Here are questions that will help you understand whether or not you align with a potential advisor.

Understanding your needs and goals:

  1. Based on my financial goals and risk tolerance, what asset allocation would you recommend for my portfolio?

  2. How do you take my individual circumstances, like career stage and family situation, into account when creating an investment plan?

  3. What are my expected returns on different types of investments within my risk tolerance level?

Investment philosophy and strategy:

  1. Explain your investment philosophy and how it guides your recommendations.

  2. What role do active management and passive investing play in your strategy?

  3. How do you manage risk within my portfolio and protect against market downturns?

  4. Do you incorporate any environmental, social, or governance (ESG) considerations into your investment choices?

Communication and fees:

  1. How often will we communicate and review my portfolio? What can I expect in terms of communication channels and reporting?

  2. How do you charge for your services? Can you explain your fee structure in detail?

  3. What resources and educational materials do you offer to help me stay informed about my investments?

Bonus questions:

  • What are your current top investment ideas, and why do you recommend them?

  • What are your thoughts on the current market conditions and potential future scenarios?

Remember, the best questions will be specific to your financial situation and concerns. Don't hesitate to ask any additional questions that come to mind during your discussion.

Ted Middleton