Engaging a professional to help manage your finances is a major step towards securing your future. Most people prepare for their first meeting by gathering financial documents and thinking about their goals, such as retirement or buying a property. They often ask about fees, investment philosophies, and qualifications, which are all important topics to cover.
However, a truly productive relationship with a financial adviser is built on deeper understanding and clear communication. To get a complete picture of how they operate and whether they are the right fit for you, it is useful to ask questions that go beyond the basics. These inquiries can reveal more about their approach, their communication style, and how they handle different client scenarios.
Before you commit to a professional relationship, digging a little deeper can provide peace of mind and set clear expectations from the start. A good adviser will welcome detailed questions and provide transparent answers. Here are some important questions that people often forget to ask, which can help you make a more informed choice.
How will you measure our progress towards my goals?
It is one thing to set financial goals, but another to track progress effectively. Ask a potential adviser how they measure and report on your portfolio’s performance and your progress toward specific objectives. Will you receive quarterly reports, have access to an online portal, or meet annually to review everything? Understanding the reporting process ensures you will always know where you stand. This question also clarifies how they define success—is it purely based on investment returns, or does it include milestones like reaching a savings target for a house deposit?
Who is your typical client?
This question helps you understand if the adviser has experience working with people in a similar financial situation to yours. Some advisers specialise in wealth accumulation for young professionals, while others focus on retirement planning for those nearing the end of their careers. If an adviser’s typical client has a financial profile that looks a lot like yours, they are more likely to understand your specific challenges and opportunities. It shows they have a proven track record of helping people with similar needs.
What happens if you retire or leave the firm?
Thinking about the long term is essential, and that includes planning for changes in your adviser’s career. Asking about their succession plan is a practical matter. You want to know what would happen to your accounts if they were to retire or move to another company. A well-prepared adviser or firm will have a clear continuity plan in place to ensure a smooth transition and uninterrupted service for their clients. This foresight demonstrates professionalism and a commitment to your long-term financial well-being.
How do you handle disagreements or underperformance?
No investment strategy is successful all the time, and markets can be unpredictable. It is useful to know how an adviser communicates during periods of market downturn or if your portfolio is not performing as expected. Ask how they handle difficult conversations and what their process is for re-evaluating strategies that are not working. This question gives you insight into their transparency, accountability, and ability to manage client relationships through challenging times.
