10 Critical Questions to Ask a Financial Advisor Before Hiring Them

Hiring a financial advisor is like a job interview where you are the boss. But if you don't know what to ask, you might end up paying 1% fees for subpar performance. Here is your cheat sheet for vetting any advisor in 2026.

You have decided you need help with your money. You have a meeting scheduled with a "Wealth Manager" or "Financial Consultant." Now what?

Most people just nod along to the sales pitch, assuming the nice person in the suit has their best interests at heart. Don't do that. Ask these 10 hard-hitting questions to expose their true incentives and see if an AI financial advisor might be a better fit.

Question #1

"Are you a fiduciary 100% of the time?"

This is the most important question. A fiduciary is legally required to put your interests first. A "broker" (suitability standard) is only required to sell you products that are "suitable"—even if they are expensive and earn them a huge commission.

🚩 Red Flag: "I am a fiduciary in certain advisory accounts..." (This means they switch hats to sell you junk).

✅ AI Answer: Yes. AI advisors like OptiVault are programmed to be objective fiduciaries.

Question #2

"How exactly do you get paid?"

You want "Fee-Only." This means they only get paid by you (hourly or flat fee). Avoid "Fee-Based" (confusing, I know), which means they get fees AND commissions from selling mutual funds or insurance.

🚩 Red Flag: "It doesn't cost you anything out of pocket..." (They are taking it from your returns).

Question #3

"Do you receive any commissions or revenue sharing?"

Many advisors push specific mutual funds because that fund company pays them a kickback. It's a massive conflict of interest.

✅ AI Answer: No. AI advisors select low-cost ETFs based purely on data.

Question #4

"What is your 'all-in' annual cost?"

They might say "1%." But ask about the underlying fund fees (expense ratios) and trading costs. The real number is often closer to 2%.

🚩 Red Flag: Hesitation or complex math.

✅ AI Answer: Flat fee ($100/yr) + ~0.05% ETF expense ratios.

Question #5

"How often do you review my tax strategy?"

Most humans review taxes once a year in December. But markets move daily. Missing a tax-loss harvesting opportunity in March can cost you thousands.

✅ AI Answer: Daily. Algorithms check for tax savings every single morning.

Question #6

"What is your investment philosophy?"

If they say "we try to beat the market by picking undervalued stocks," run. Data shows 90% of stock pickers fail to beat the S&P 500 over 15 years. You want low-cost index investing.

Question #7

"Can you show me a sample financial plan?"

Is it a generic 30-page PDF with boilerplate text? or is it a dynamic, personalized roadmap that updates when your life changes?

Question #8

"Who is my custodian?"

Your money should never be held by the advisor directly (that's how Bernie Madoff happened). It should be at a third-party bank like Schwab, Fidelity, or Pershing.

Question #9

"What happens if the market crashes?"

Listen for "We stay the course." But ask how they handle rebalancing during a crash. Do they buy more stocks automatically when they are cheap? Or do they wait for you to call?

Question #10

"Why should I pay 1% when AI does this for $100?"

This is the ultimate test. If their answer is "Relationship" or "Peace of mind," ask yourself if that phone call is worth $5,000+ a year. If they can't justify their fee against modern technology, they are obsolete.

Skip the Interview. Get the Results.

OptiVault passes every one of these questions with flying colors. Fiduciary? Yes. Commissions? No. Daily tax reviews? Yes. Flat fee? Yes.

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