Your relationship with a financial advisor should feel collaborative – not confusing. In this episode we share thoughtful questions that can help you evaluate an advisor, stay engaged in your financial plan, and prepare for retirement with greater confidence.
Episode Trascript
Intro/Closing 0:02
Welcome to the Real Talk Retirement Show, where we explore the financial side of retirement and beyond. Whether you’re currently retired or planning for the future, we offer real, relatable conversations about money and personal finances. Most importantly, we dive into all these topics using Real Talk. Now, let’s get real about your money and your retirement.
Brian Graff 0:28
Welcome everyone to another episode of The Real Talk Retirement Show. We are Brian Graff and Tracy Burt from Conrad Siegel with you as always. Today we’re going to cover a topic that I think is very practical. In fact, a lot of what we talk about today are questions that listeners could literally take right from this episode and use almost word for word the next time they meet with a financial advisor. For some people, that may be this year. For others, it may be a little further down the road. But today we are talking about what questions you should ask your financial advisor. So, right, at some point in life, many people find themselves thinking about getting help with their finances. It’s only normal. We think most people are going to be looking for this help at some point in time. For some people, that happens a little bit earlier in their career, while for others, it happens when retirement starts creeping up on us and getting closer and closer, and when those decisions really start to feel bigger and bigger.
Tracy Burke 1:27
Yeah, that’s right, Brian. And just like, you know, we should go to the doctor when we have a medical issue, that financial advisor can really help when the financial side of your life becomes more complex. And then I would just say at the same time, it’s important to remember that an advisor isn’t always necessary, right? Um, in some certain situations. But as your situation becomes more complex, it certainly can be a good idea to find that good advisor. So as you mentioned, today we’re going to walk through uh some questions. I think we got eight questions uh for our listeners that may want to ask their financial advisors. We’re gonna break it down into two parts. The first for the first part are questions to ask when you’re looking for or considering working with or hiring a new advisor. Um, and then the other questions that we’re gonna focus on are ones that if you already have that relationship, if you already have an advisor, and just want to make sure you’re getting the most out of that relationship.
Brian Graff 2:24
Yep.
Hiring An Advisor The Must Asks
Brian Graff 2:25
So for segment one, again, this is questions to ask advisors that you are considering working with in the future. Okay, so we’ll uh we’ll kick this off and make it very practical. And let’s say that you decide you will need to work with an advisor, and maybe you select two or three to interview. Uh, what are what are we asking them? Well, first off, we think it’s good to ask, you know, what services do you actually provide? Right? Many people assume that all financial advisors kind of offer the same amount of services and provide the same type of um conversations, but that’s really not always the case. Uh some advisors primarily focus on just managing investments, while other advisors they manage investments, but they also provide comprehensive financial planning, which might include things like retirement income planning, tax planning strategies, social circuits, I’m sorry, social security timing considerations, uh, estate planning coordination, insurance analysis, gifting strategies, education planning, and even more. So asking the simple question of what services do you actually provide really will help clarify the role the advisor will actually play and can probably give you an apples to apples comparison if you’re talking to multiple advisors. Uh for people later in life, the biggest questions they face are not just about choosing investments. Keep that in mind. It’s it’s more about how they turn their savings into income that will last through retirement.
Tracy Burke 4:04
Yeah, and that that’s certainly a good one, Brian. So next up is asking a potential new advisor, how are you compensated? So, as a warning, you know, this one can really tell a lot about uh the person you’re sitting across from that, the potential advisor. Some might get really squirmy and they just don’t want to talk about it, right? They they don’t like talking about it, and sometimes that might be a sign that they have disclosed some hidden fees or there’s some other things happening there. Uh, and then then you have others who are very at ease discussing it because there’s really nothing to hide. Now, we could certainly spend a whole entire episode on this one, and frankly, we actually did that. I think it was episode six uh back in season one, uh, that included investment fees as well uh as overall fees. But I believe this question is really where good advisors really can set themselves apart from the pack. Uh, because again, it is so important for you to understand how the advisor gets paid. Um, I was just sitting with a prospective client uh yesterday for the first time, and um they were asking me, how do you think that my current advisor gets paid? And of course, you know, uh my my uh sort of response was, well, have you ever asked them? And they’re like, no, because I feel awkward doing it. And and the goal is hopefully, you know, as consumers, we don’t feel awkward asking those who are working with how they get paid. And I think that’s uh certainly a very fair and a good question to ask. But, you know, the reality is in the financial advisory space, there are different compensation models that exist. Some people operate on that fee only or that fee for service model, uh, where the clients pay a fee for advice and planning and you know, and and management and all those type of things, and everything’s fully disclosed. Uh, others may receive commissions based on certain financial products that they recommend, which a lot of times, sometimes that’s unclear or maybe even hidden cost. So, again, understanding that compensation structure can really help clients recognize whether there could be potential conflicts of interest that are out there. I think it also can give a clear picture of what you’re paying and the services you’re going to be, you know, receiving in return for that payment. Um, so that then the other thought is related to compensation. Uh, you know, another word to look out is uh for is that F word, the fiduciary word, right? You know, advisors that operate as fiduciaries are legally required to act in the best interest of their clients. And this normally includes transparency around fees and compensation as well.
Brian Graff 6:50
Yeah, so so incredibly important. And like Tracy said, feel free to go back and listen to episode six of our podcast for more details on the advisor investment fees. So, next question is asking an advisor, you know, what type of clients do you typically work with? It’s important for you to understand whether the advisor regularly works with people who are in a similar stage of life as you and who be maybe facing similar financial decisions. Because the reality is financial advice looks very different depending on someone’s stage of life. Uh, if you’re over 60 years of age, for example, you may likely be looking at things like optimizing your retirement income, distribution strategies, and even tax planning. But if the advisor works mostly with younger families focused on saving and accumulating wealth, it might not be the best fit for you. So, what we’re after with this question, we’re really just trying to determine whether the advisor has experience solving the kinds of challenges that you’re facing. And they do they really truly understand you and understand your goals?
Tracy Burke 7:54
Yeah, another good one. So, uh, one more question for uh that we’re gonna cover here today when thinking about a new advisor, um, is simply can you tell me about your firm? Right. So this helps, you know, the consumer understand the broader organization that’s behind the advisor, which can often be very, very important. Uh, so some things to look out for as talking, you know, about their organization, you know, well, how long has your firm been in business? How many advisors are part of your team? Uh, approximately, how many clients does each advisor work with? Has the firm ever been had any disciplinary, uh, regulatory issues out there? What’s your investment philosophy? So I realize Brian, I just sort of kind of cheated there by offering a bunch of questions and throwing under uh the guise of this this one. But really, these are all fundamental, you know, ideas and questions that can give uh folks a better sense of the team, the resources, and and who’s behind that advisor. And again, you should get a good feel about what the firm is all about. Um, so I think kids actually are caught calling it good vibes these days. I think that’s the the lingo, right? Uh, but do you get good vibes when the advisor talks about the organization as a whole, is really what you want to have that feeling.
Brian Graff 9:16
Gee, I wonder what my kids would say about my vibes, Tracy. You know, I actually scratch, I don’t think I want to know because it would probably not be a very positive response. But uh Okay, okay, let’s uh let’s switch gears
Annual Review Are You Still On Track
Brian Graff 9:27
here. And let’s say, Tracy, you already have an advisor and you’re going for your annual review, let’s say. Uh let’s look at some questions to ask your current advisor. So, first up, question number one Am I still on track for reaching my goals? Super important. And this can apply to both pre-retirees and folks that are already in retirement. Uh, you know, so again, one of the most important questions during a review meeting is whether your current plan is still aligned with your long-term retirement goals. And this conversation often involves reviewing several factors, uh, such as you know, how much income I may need during retirement, how long retirement could last for me, and then certainly projected income sources like you know, social securities or pensions. And realize that you know, financial planning often involves estimating whether there may be a gap between your projected retirement income and your expected spending. And if that gap exists, Tracy, I think you know, you’re probably gonna need to make some adjustments, such as saving more, uh, maybe changing the timing of your retirement or even modifying your spending expectations a little bit.
Tracy Burke 10:35
Yeah, for sure. And and Brian, this is a really good one and something that I love to chat about with our clients. Uh and for those in retirement, depending on their income needs and of course asset level, because everybody’s unique in in some way, uh, somewhere on what we call a guardrails approach to retirement income. And we’ve loosely talked about this a little bit in in the past, but really focuses on staying on the road during retirement rather than running off into the gutter, you know, meaning potentially running out of money. But uh certainly a very good topic, uh, you know, making sure that that you’re on track for your goals. So, related to that one, the next question is should anything change in my portfolio
Portfolio Changes Risk And Performance
Tracy Burke 11:17
at this point? Um, so during those review meetings, it’s certainly helpful to revisit whether your current strategy still aligns with your your goals, your financial plan, and also your comfortability with the uh the level of risk you’re taking. So, you know, with this this part of it, you know, thinking of things like, well, is my risk tolerance, is that still appropriate? Has it changed? Has anything changed on that front? Does that mean my asset allocation, my stock bond mix, and the level of diversification, uh does is that okay? Is that uh okay remaining the same, or do we need to make some adjustments there? And then also looking at the performance element, you know, um, how has my overall portfolio performance been? And how does it compare to either benchmarks or the market as a whole? Um, so again, it’s important to remember that if your plan is working and your goals replay remain the same, a lot of times, you know, the the best decision is just to keep doing more of the same, right? Not making any changes moving forward. Uh, so something I know we always uh try to remind our clients that we work with is that it is all about that long-term strategy. And that’s often more effective than reacting to any short-term market movements that that are out there.
Brian Graff 12:36
And right now, especially this we’re we’re recording this episode during the spring of 2026, and we’re coming off a couple of good years, but we are seeing some volatility in the market, just kind of what’s going on in the in the world today. So uh it’s really important to focus on that long-term strategy now, now more than ever. But you know, at the at the same time, we do realize it can be nerve-wracking uh to be in or near retirement and be worried about those uh market conditions. So the last thing we want to tell you is just don’t do anything, you know, just kind of put your head in the sand. Uh, if you are worried, it’s definitely okay uh to ask your advisor about what’s going on. Okay, so definitely have those conversations and hopefully they can put your mind at ease a little bit there.
Planning For Market Downturns
Brian Graff 13:18
So our next question is to ask an advisor is is my portfolio prepared uh for those market downturns we just talked about? Uh market volatility is something that every investor experiences at some point, right, Tracy?
Tracy Burke 13:31
Yeah, and sure. And it’s not it’s not if it’s certainly when that market’s gonna be uh taking its next downturn.
Brian Graff 13:38
Yeah, for sure. And it’s so it’s obviously very natural for clients to have questions or concerns about how their investments may perform during those difficult market environments. So during your annual review or meetings, it can definitely be helpful to discuss things like you know how diversified truly is my portfolio and how is the investment strategy of my portfolio designed to navigate the various market cycles?
Tracy Burke 14:03
Yeah, and I would say, you know, to that very point, Brian, you know, something we often tell our clients, you know, we’re trying to develop all-weather portfolios, something that’s well diversified. And that all-weather part portfolio is is not something that we constantly need to shift, but really um, you know, functions well during the upturns and then provides that diversity, you know, diversification and and balance uh so that during the downturns it’s not accelerated either. Sure.
Brian Graff 14:31
And obviously, Tracy, with our experience, we’ve been through many, many ups and downs in the market. So uh it’s it’s okay and it’s a good thing to ask your advisor for a little bit of historical perspective on market performance and downturns, perhaps to give you just a little bit more peace of mind again. And you know, ideally a financial plan and a portfolio strategy is being built for you with the understanding that markets will go through periods of decline. Like we said, it’s it’s inevitable. So talking about these things ahead of time can really help you feel more prepared when the volatility actually occurs.
Tracy Burke 15:03
Yeah,
Legacy Planning Beneficiaries And Estate
Tracy Burke 15:04
absolutely. Um, and then finally, switch slightly switching gears, maybe a little bit here. You know, we do encourage clients to discuss their legacy, ask questions, you know, to their current advisor. You know, does my financial plan still align with my legacy plan? And you know, that word legacy, um, you know, another way to put it is a state, sort of the estate planning. And sometimes that might be looked upon as a as a more of a negative way to to to you know uh identify it. My no nobody likes to talk about uh my estate plan, right? But my legacy plan, certainly something to talk about or review on a regular basis. So changes in your personal life can certainly affect how assets should be ultimately distributed after you’re gone. So during these review meetings, you know, it can be very helpful to revisit. Uh, make sure there’s beneficiary designations that they’re set up properly, whether they’re retirement accounts or other accounts. Uh, are your wills and trusts well in place? Uh, powers of attorney. Do you have your power of attorney document uh in place and the correct people name for them? Uh, you know, any long-term plans for transferring that wealth to heirs, uh whether it’s gifting strategies or other type of things. So, again, a good advisor is gonna, you know, hopefully be able to coordinate uh some of those conversations, but also coordinate you and and uh connect you with an estate planning attorney to ensure that financial strategy does along um you know go along with your long-term wishes. Um, so another thought is also to get feedback from your advisor because keep in mind, you know, assuming they’re working with a lot of different folks, they’ve seen a lot of situations uh that over their career and some situations that might um you know be applicable to your situation. So they certainly know your goals the best and should be able to guide you in those conversations.
Action Items And How To Reach Us
Brian Graff 17:05
Absolutely, Tracy. Well, let’s go ahead and wrap up with some action items, as we always do. You know, that this episode was a bit unique in that I believe the whole episode was filled with with action items and great questions to ask your advisor. But if we had to sum it up, you know, here are the action items we will present. So, first, remember when you’re looking into hiring an advisor, do your research. Think about all the research you do when you’re buying a car or a house or even just going out to eat. Hiring an advisor is a big decision, right? So ask questions about their experience, their compensation, and the broader organization. Uh, read reviews and look for client testimonials if they’re available.
Tracy Burke 17:46
Yeah. And then on the other side, when you already have an advisor, like we we were mentioning, some of those questions, it’s really about engagement, right? So we encourage you to be engaged. Uh push your advisor into strategy, make sure you’re asking some of those maybe tough questions. Uh ask about your risk tolerance, check in on your retirement savings and whether you’re still on track. And again, a good advisor certainly should welcome those conversations and want you to be engaged. So ultimately, it’s, you know, really don’t just sit back and listen during review, be that active participant because open dialogue certainly is best.
Brian Graff 18:24
Absolutely. So remember, everyone, please continue to reach out to us with any questions or comments. You can get us at podcast at conradsiegel.com. We are truly here to help. And be sure to also remember to share these podcast episodes with your friends, family members, coworkers, and please give us a five-star review if you’re inclined, and subscribe if you haven’t already. Uh, so thanks so much, everyone, for staying with us on your journey to and through retirement. We wish you nothing but good vibes, right, Tracy? And we will uh see you next time on the Real Talk Retirement Show.
Intro/Closing 19:02
Thank you for tuning into today’s show. The Real Talk Retirement Show is created and produced by Conrad Siegel, an advisory firm that specializes in helping people prepare for retirement and beyond. If you want to learn more about our work or meet the team, you can visit ConradSegal.com. Information on this show is for educational purposes only and should not be considered personalized investment, tax, or legal advice. Before making decisions, you should consult with the appropriate professionals for advice that is specific to your situation.