Mainstreet Financial Education · Choosing an Advisor
Many people sign before they ask. These are the questions worth asking first, and the answers worth listening for.
Understand the standard they are held to and how they are paid.
A fiduciary is required to put your interests first. Ask whether that duty covers every part of the relationship, including planning, advice, and rollovers, not just some of it.
Fee-only advisors take no commissions. Even within fee-only, the structure, a percentage of assets, flat, hourly, or advice-only, can differ by thousands on the same portfolio.
Your money should sit with an independent third-party custodian such as Schwab or Fidelity, not with the advisor's own firm. It is a basic safeguard.
FINRA BrokerCheck and the SEC adviser search show registrations, fees, conflicts, and any discipline. The CFP Board confirms the CFP® mark.
Total cost is more than the advisory fee. Ask about every layer.
The advisory fee plus fund expense ratios (index funds run near 0.05%, active funds often 0.5–1%), platform fees, and any product costs.
Commissions, 12b-1 fees, insurance payouts, and referral fees can each create a conflict of interest. Ask for them to be disclosed plainly.
Some annuities and products charge a penalty to exit, often 5–10% in the early years of the contract. Know the terms before you commit.
Ask how the fee structure might influence recommendations, for example around rolling over a 401(k) or whether to pay down a mortgage. A good advisor will walk you through it.
"Will you act as a fiduciary, in writing, for every part of this relationship?"
A clear, written answer tells you more than any title on a business card. If the answer is anything other than a straightforward yes, ask why.
At Mainstreet, planning is delivered under a fiduciary standard through our RIA.
Start with a free seminar or the complimentary guide. The next step is always yours to take.
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