What Questions Should I Ask A Potential Financial Advisor?

Faith & Finance

“Test everything; hold fast what is good.” - 1 Thessalonians 5:21

In that verse, the Apostle Paul teaches that we should practice discernment in all things. We would include financial advice.

One of the most common questions we receive is, "How can I choose a financial advisor who I can trust and who fits my financial situation?" Fortunately, there are practical steps you can take to ensure you find someone reliable, especially by starting with a Certified Kingdom Advisor (CKA).

At FaithFi, we recommend beginning your search with Kingdom Advisors. With over 1,600 CKAs, these professionals are skilled in various financial disciplines and share your Christian values. You can easily connect with one by visiting our website and clicking "Find a Professional."

When selecting a financial advisor, we always recommend interviewing two or three candidates to find the best fit. Below are key questions to help guide your conversations.

1. Experience and Qualifications

• How long have you been in practice?
• What professional certifications do you hold?
• Can you tell me about your practice and areas of specialty?

These questions help you understand their background and expertise, ensuring they’re experienced in the areas you need help with.

2. Service Expectations

• Will you or an associate work with me directly?
• How long will it take to complete my work?
• What are your client response times and communication methods?

These questions clarify what kind of service you’ll receive and help you set realistic expectations for timelines and communication.

3. Referrals and Reputation

• Do you have clients in similar situations who might speak with me?
• Are you in good standing with your professional associations?
• Have you ever been cited for disciplinary reasons or had complaints filed against you?

Asking about their reputation and seeking referrals ensures you work with someone respected and trustworthy.

4. Compensation Structure

• How are you compensated—fees, commissions, or both?
• Do you charge for initial consultations?
• What do you project my costs will be for your services?

Understanding how fees are paid is critical. Ask how fees are structured and calculated to avoid surprises down the road.

Take the Next Step

Choosing the right financial advisor requires diligence. These questions will help you make an informed decision and find someone who aligns with your values and financial needs. We encourage you to begin your search with a Kingdom Advisor by visiting FaithFi.com and clicking “Find a Professional.”

By following this process, you’ll connect with someone who offers expert financial advice and shares your faith and values.

On Today’s Program, Rob Answers Listener Questions:

• What is the minimum time frame to hold a losing stock before selling and reinvesting in a potentially different stock? Also, what would be a good resource to research the legitimacy and potential of a brand-new stock?
• I recently had two data breaches—one with my retirement fund and one with my bank. Both offered free credit monitoring services. Is it advisable to use both monitoring services at the same time? And is the CyEx company reputable?
• I'm recently retired, and I have a 9-year-old car that I really like. Some of my friends have recently purchased new cars, and I'm concerned about feeling pressured to buy an electric or hybrid vehicle. Is there an urgency for me to replace my older car that's still running well, or can I just stick with my current car?
• I'm retired and thinking of selling a rental property. How is the capital gains tax rate determined? Is it based on my total or adjusted gross income? If I have $400,000 in capital gains, would that get added to my other income to figure out the tax bracket?

Resources Mentioned:

• Motley Fool | Morningstar | MarketWatch | Seeking Alpha | Yahoo Finance
• AnnualCreditReport.com | Credit Karma
• Look At The Sparrows: A 21-Day Devotional on Financial Fear and Anxiety
• Rich Toward God: A Study on the Parable of the Rich Fool
• Find a Certified Kingdom Advisor (CKA) or Certified Christian Financial Counselor (CertCFC)
• FaithFi App

Remember, you can call in to ask your questions most days at [phone]. Faith & Finance is also available on the Moody Radio Network and American Family Radio. Visit our website at FaithFi.com where you can join the FaithFi Community and give as we expand our outreach.