7 Questions to Ask Financial Advisors Before Hiring One

Even modest improvements in tax efficiency, risk control, and behavioral guidance could potentially translate into substantial dollars when you have $1 million or more invested.

Before you hire—or keep—an advisor, it can be especially important that an advisor be able to competently offer confident answers to specific questions about your portfolio and your unique financial goals.

SmartAsset’s latest proprietary model reveals that working with a financial advisor could potentially add from 36% to 212% more dollar value to investors’ portfolios over a lifetime, depending on multiple unique, individual factors.¹

So choosing an advisor who aligns with your unique financial goals could be crucial.

SmartAsset’s no-cost tool connects you with vetted, fiduciary wealth advisors who may specialize in guiding affluent investors through complex financial landscapes.

Here’s how it works:

• Short questionnaire takes just a few minutes
• Match with vetted fiduciary financial advisors
• Compare your matches and choose the one you feel is best for you

The fiduciary financial advisors you match with serve your area and are legally bound to work in your best interest. You may even be able to instantly connect with an advisor for a free introductory call. Advisors are vetted through our proprietary due diligence process.

Keep scrolling for a list of hypothetical example questions advisors should likely be able to answer for you.

7 Questions to Ask Financial Advisors Before Hiring One

1. “Walk me through your strategy for drawing from taxable, traditional-IRA/401(k), and Roth accounts so my lifetime tax bill is as low as possible—especially once today’s brackets expire after 2025.”
A seasoned advisor may be able to map out multi-year withdrawal and conversion scenarios that intentionally “fill” lower brackets early, smoothing taxes over decades rather than letting required distributions explode later.

2. “What Roth-conversion timetable would you recommend to reduce future RMDs while keeping Medicare premiums and other income-based surcharges in check?”
Large conversions may inadvertently trigger higher health-care costs. Sophisticated planning could help layer conversions, charitable moves, and income thresholds together.

3. “How can I lock in the current estate-tax exemption before it is scheduled to shrink in 2026—and which trust structures best suit my family?”
Strategies such as spousal access, dynasty, or grantor trusts may be able to shift assets outside the taxable estate without sacrificing control or cash flow.

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4. “What’s your approach to tax-smart giving—donor-advised funds, charitable remainder vehicles, or direct gifts of appreciated stock—and how do these tactics support my broader legacy goals?”
Thoughtful philanthropy may help simultaneously manage concentrated-stock risk, offset conversion income, and cement family values.

5. “How do you mitigate sequence-of-returns risk once required minimum distributions (RMD) begin at age 73?”
To address this, an advisor might suggest looking for evidence of cash-flow bucketing, dynamic spending rules, and taxable-account rebalancing that cushion the first decade of retirement—when early losses hurt most.

6. “Show me how you maximize after-tax performance across every asset sleeve—public markets, municipals, private credit, and tax-managed SMAs—instead of chasing headline returns.”
For high-net-worth investors, controlling tax drag may often add more potential value than aggressive stock selection alone.

7. “How do you stress-test my plan against potential policy changes or major liquidity events such as a business sale or inheritance?”
Scenario modeling may involve evaluating income, estate, and capital-gains shocks—and outline contingency actions well before they become urgent.

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How to Find a Vetted Fiduciary Financial Advisor

No one’s portfolio or financial plan deserves a cookie-cutter approach, so it can be important to ask questions like the ones above to help ensure an advisor will take a thoughtful and thorough approach to yours.

Consulting a fiduciary financial advisor could help you determine a plan that factors your assets and taxes into your overall retirement and estate-planning goals.

Fiduciaries are obligated by law to act in your best interest and any potential conflicts of interest must be disclosed.

Finding a fiduciary shouldn't be that hard. Thankfully, now it isn't.

SmartAsset's no-cost matching tool helps match you with fiduciary financial advisors who serve your area so you can compare and decide which advisor to work with.

All advisors on the matching platform have been vetted through our proprietary due diligence process.

Here’s How It Works:
1. Complete a brief goals-focused questionnaire
2. Review your vetted advisor matches.
3. Schedule introductory calls—often same-day—during which you may be able to probe their answers to the questions above.

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This is a hypothetical example and is not representative of any specific security. Actual results when working with a financial advisor will vary.

This scenario is for illustrative purposes only and does not represent an actual client. Results may vary.

This is not an offer to buy or sell any security or interest. All investing involves risk, including loss of principal. Working with an adviser may come with potential downsides such as payment of fees (which will reduce returns). Past performance is not a guarantee of future results. There are no guarantees that working with an adviser will yield positive returns. The existence of a fiduciary duty does not prevent the rise of potential conflicts of interest.

SmartAsset.com is not intended to provide legal advice, tax advice, accounting advice or financial advice (Other than referring users to third party advisers registered or chartered as fiduciaries ("Adviser(s)") with a regulatory body in the United States). The article and opinions in this publication are for general information only and are not intended to provide specific advice or recommendations for any individual. We suggest that you consult your accountant, tax, or legal advisor with regard to your individual situation.

SmartAsset Advisors, LLC ("SmartAsset"), a wholly owned subsidiary of Financial Insight Technology, is registered with the U.S. Securities and Exchange Commission as an investment adviser. SmartAsset’s services are limited to referring users to third party advisers registered or chartered as fiduciaries ("Adviser(s)") with a regulatory body in the United States that have elected to participate in our matching platform based on information gathered from users through our online questionnaire. SmartAsset receives compensation from Advisers for our services. SmartAsset does not review the ongoing performance of any Adviser, participate in the management of any user’s account by an Adviser or provide advice regarding specific investments.

We do not manage client funds or hold custody of assets, we help users connect with relevant financial advisors.

Sources:
1. “The Value of a Financial Advisor: What’s It Really Worth?” SmartAsset (Nov. 2024)