Fiduciary Advisor Interview Checklist PDF
What to ask to ensure your best interests come first
Choosing a financial advisor is one of the most significant decisions you will ever make, yet the industry's lack of transparency often leaves investors in the dark.
We've created the 5-Minute Fiduciary Audit to put the power back in your hands. This simple, 5-question checklist cuts through the jargon and helps you determine if your current advisor is working for you - or for a Wall Street bank.
Use it during your next review meeting to ensure your portfolio is receiving the object, conflict-free care it deserves.
Are you a fiduciary at all times, and in all of our accounts?
A fiduciary advisor is a financial professional who is legally and ethically required to act in their client's best interests at all times. This means they must put the client's interests ahead of their own, avoid or fully disclose conflicts of interest, and provide advice based on what is most appropriate for the client - not what pays the advisor more.
This standard is especially important for retirees and pre-retirees, where decisions around income, risk, taxes, and fees can have long lasting consequences.
Do you receive commissions, 12b-1 fees, or ‘kickbacks’ for the products you recommend?
Understanding how a fiduciary advisor is paid is an important part of evaluating objectivity and alignment. Compensation structures can influence advice, transparency, and long-term outcomes. A fiduciary professional will inform you that they avoid products with rebates or commissions or that they will credit those amounts back to your account to remain objective.
Do you recommend ‘in-house’ or proprietary investments from your own firm?
Proprietary products often have higher fees and are designed to keep your money within the advisor’s parent company, regardless of performance. When they are identified in a proposal, a client should always ask if a lower cost comparable product is available.
How To Identify Proprietary Products
Can you provide me a written summary of the total fees I pay, including both your advisory fee and the internal fund expenses?
Many investors pay an advisory fee (e.g., 1%) but are unaware they are paying another 0.50%-1.00% in “hidden” internal mutual fund expenses.
How exactly are you compensated for the advice you provide me?
The fiduciary answer is Fee-Only. Clients pay a transparent fee (flat, hourly or percentage) only. There are no commissions paid on the back end for any products that are recommended.
A true fiduciary will have no problem answering these directly. If your advisor answers with a no or provides a vague answer; you are likely working with a broker. Your interest may be secondary to their sales goals or quotas.
Download and print a PDF copy of this 5-Minute Fiduciary Audit and ask these questions during your next review appointment with your advisor.