Will you be the only person working with me?
Advisors and planners can work independently or as part of a team composed of attorneys, insurance agents, and tax specialists. Make sure you’re aware of your advisor’s particular arrangement before you sign any agreements, or many more people could wind up handling your personal information than you’d like. 

How will I pay for your services, and how much do you charge?
There is no standard compensation for financial planners. Those who work for a company receive a salary, which comes from the fees or commissions you pay. Others charge fees based on an hourly rate, a flat rate, or a percentage of your assets and income. Some planners receive commissions from third parties for the products you purchase as a result of their recommendations, and most work for a combination of fees and commissions.

You should know what the situation is from the start, especially if your advisor is receiving commissions for the recommendations he’s giving you, because that creates a potential conflict of interest.

And even though the amount you pay will vary according to your specific needs, your planner should provide you with a cost estimate before starting to work with you. This should include hourly rates, flat fees, or the percentage he would receive as commission on products you may purchase because of his advice. 

Who else besides me will benefit from your recommendations?
In addition to the issue of commissions, there are other sketchy areas of the financial advisor relationship. Ask all potential advisors to describe these potential conflicts of interest in writing, including all business they receive for referring you to insurance agents, accountants, or attorneys to implement their planning recommendations. Make sure you keep a copy of this statement.

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