12 Questions to Ask a Financial Advisor Before Switching

If you’ve decided it may be time to switch your financial advisor, it’s worth pausing before making the move. Taking a moment to reassess the relationship and ask a few questions can help clarify whether a change is truly the best next step.

 

1. How Much am I Paying in Advisory Fees and Investment Costs?

Ask your financial advisor to provide a transparent, itemized breakdown of all your fees and compare your costs to industry benchmarks. If your costs are higher than the industry average or your advisor hesitates to disclose how much you’re paying in fees, it might be a sign that it’s time to explore other options. Transparency and fair pricing are necessary for a strong working relationship.

 

2. Am I Financially Prepared to Handle Unexpected Events?

Unexpected life events like a job loss, a severe illness, or a natural disaster can have a significant impact on your finances. Can you weather the storm when faced with an unforeseen event? This is a critical question to ask your financial advisor to help ensure you’re prepared.

Ideally, your advisor will have put measures in place to alleviate financial stress when life doesn’t go according to plan. These measures could include:

• Maintaining liquid investments that can be used to avoid disrupting long-term holdings
• Insurance coverage that protects against financial risks that could derail long-term goals
• Identifying in advance which assets would be accessed first if significant funds were needed unexpectedly

 

3. Is My Investment Strategy Aligned to Meet My Short- and Long-Term Financial Goals?

This is arguably one of the most important questions to ask your financial advisor during annual reviews. Your financial advisor’s investment strategy should align with your short- and long-term financial goals and risk tolerance. 

For example, an investor approaching retirement may prioritize capital preservation and income generation, while a younger investor may focus more on long-term growth.

 

4. How Are You Helping Me Prepare for Rising Healthcare Costs? 

Healthcare expenses can significantly impact your long-term wealth preservation and retirement planning, especially as you get older. According to a 2025 Fidelity study, an individual retiring at age 65 that year needed $172,500 in after-tax savings to cover medical expenses in retirement, up nearly 4% from the previous year. 

It’s important to know whether your financial advisor has incorporated strategies for Medicare planning, health insurance, and long-term care to protect you against healthcare inflation.

 

5. What Tax Strategies Are You Using to Reduce My Taxes?

Unless you’re exclusively investing through a tax-advantaged account that’s exempt from taxes, you should expect to pay taxes on your investments. Based on your portfolio, this could include taxes on interest, dividends, and more. 

Consider asking your financial advisor about the tactics they employ to reduce your tax liability. For example, one common investment advisor tip is tax-loss harvesting, which allows you to offset your capital gains and lower your tax bill.

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Questions to Ask a New Financial Advisor Before Hiring Them

Your financial advisor should be someone you trust and who helps you meet your financial goals. If your current financial advisor is not meeting your financial needs, hiring a different professional might be worthwhile. We have outlined what questions to ask a financial advisor before hiring them. 

 

1. Are You a Fiduciary?

A fiduciary financial advisor is legally required to put your best interests first, while nonfiduciary advisors aren’t obliged to do the same. Fiduciaries must only recommend products that are suitable for you. When vetting potential advisors, ask them to verify their fiduciary status, preferably in writing, to ensure your interests always come first.

 

2. What Will Our Working Relationship Look Like?

Some financial advisors may be happy to meet with you regularly and answer your questions via email or phone whenever they arise. Others may prefer to meet just once every quarter and reserve addressing issues for scheduled appointments.

To know what to expect from your professional relationship, consider asking these questions to ensure your communication preferences align:

• How regularly will we meet?
• How often do you provide updates?
• What are your preferred communication channels?
• Are you available via phone or email outside of scheduled appointments?

 

3. What Wealth Management Services Do You Provide?

Some financial advisors focus only on investment management. Others may offer a broader range of wealth management services, including retirement planning, tax strategy, estate and legacy planning, and insurance planning.

When hiring an advisor, it is beneficial to find someone who provides the services that align with your financial needs. For example, if you’re approaching retirement, it’s ideal to partner with an advisor with expertise in retirement and transition planning.

 

4. What is Your Investment Philosophy?

When vetting potential advisors, it’s important to understand their approach to investing, as it will affect how they manage your portfolio. 

Your advisor’s investment philosophy should align with your investment style, risk appetite, and financial goals. For example, if you’re already retired, you may prioritize preserving your wealth and reducing unnecessary risk. In this case, working with an advisor who follows a conservative philosophy and favors stability may be a better fit than one who primarily recommends aggressive, high-risk investments.

 

5. How Do You Measure and Report Investment Performance?

A good financial advisor should demonstrate how your investments performed relative to industry benchmarks and your financial goals. To determine how advisors measure investment performance, here are some key questions to ask your financial advisor about your portfolio:

• What benchmarks do you use to measure portfolio performance?
• How often do you provide performance reports?
• How do you measure progress against specific financial goals, not just market indices?

Asking these questions can help you determine whether the advisor will provide regular performance updates and help you stay on track to meet your financial goals.

 

6. How Are You Compensated?

There are generally three ways financial advisors can get paid. Understanding these structures can help you evaluate the overall cost of working with an advisor and ensure their structure aligns with your goals. Common compensation structures include:

• Fee-only advisors don’t receive commissions for the products they recommend to you. Instead, they are compensated based on services provided, often through AUM fees.

• Commission and fee-based advisors charge you for their services, but they may also earn commissions on products or services they sell you.

• Commission-based financial advisors are compensated through commissions on the products or services they sell to you.

 

7. What Types of Clients Do You Have Experience Working With?

It’s important that your financial advisor understands your unique financial situation and life stage. For instance, a young professional with no children will likely have different financial priorities than a high-net-worth couple who have retired and want to transfer assets to their children. 

Ask financial advisors what kinds of clients they typically work with to determine if their experience matches your needs and expectations.

Partner With JNBA as Your Fee-Only Fiduciary Advisor

Switching financial advisors is a significant decision that should be made after careful deliberation. These questions can help you make a thoughtful, strategic choice when considering a change in advisors.

The right advisor is someone who will be there to help guide you through important financial decisions throughout your life. That is the type of relationship we strive to build at JNBA. If you decide to switch, consider partnering with JNBA Financial Advisors. For decades, our team has worked with high-net-worth individuals and families to provide objective guidance, thoughtful planning, and disciplined investment management through every stage of life.

Schedule a complimentary, no obligation call to discover how we can help you build a financial strategy designed to support your future.