When To Fire Your Financial Advisor
When To Fire Your Financial Advisor
I’m Katherine. I’m a CERTIFIED FINANCIAL PLANNER®, a financial advisor for inheritance, and a fellow inheritor.
Each week on my Instagram page I create a quiz for current and future inheritors to test their knowledge.
Now, I’m bringing these quizzes to the blog.
Read here to test your knowledge and see how you did compared to my 10,000 Instagram followers.
Posted on July 31, 2025 by Katherine Fox.
When should you change financial advisors?
Most of the inheritors I meet don’t know how to answer this question.
In fairness, it can be tough.
There’s a huge amount of inertia to overcome if you want to move to a new financial advisor.
And if you’re just getting started, it’s intimidating and difficult to know what questions to ask.
Whether you’re looking to fire your advisor or sign up with one for the first time, this post is for you.
There’s a lot of bad behavior in the financial advice industry.
For women, especially, the internalized patriarchy and condescending attitudes of many financial advisors make you want to give up before you get started.
I understand how you feel.
I’ve seen it first hand:
My (male) boss telling a female presenter who was WAY more senior/successful than him that she doesn’t know what she’s talking about (at a presentation for women and wealth!)
(Male) trustee telling a (female) trust beneficiary to be careful not to get pregnant
Being invited to a meeting with a (female) prospect so she wouldn’t be the only woman in the room, then literally not being able to speak because the two other (male) advisors present couldn’t stop talking over each other
(Male) advisors giving technical, detailed presentations and blowing past the questions you actually want answered
You need an advisor you can trust. An advisor who understands you and makes you feel confident and comfortable asking questions.
You also need to make sure this person is technically qualified.
Keep reading to get:
Key information you need to understand before hiring a financial advisor
A quiz to test your financial advisor knowledge, and
Top questions you NEED to ask the financial advisors you interview
First, let’s test your knowledge on the difference between Registered Investment Advisors and Broker-Dealers.
This is key to understanding how your financial advisor is paid and the legal responsibilities that govern their client relationships.
#1 Your advisor tells you they are a fee-only advisor. Meaning they ONLY make money from the direct fee you pay them, no commissions or sales charges. Is this advisor a…
A.lRegistered Investment Advisor
B. Broker-Dealer
C. Could be either
#2 You’re considering working with a “fee-based” advisor who earns commissions in addition to the direct fees they charge you. Is this advisor a…
A.lRegistered Investment Advisor
B. Broker-Dealer
C. Could be either
#3 You talk with a potential advisor who discusses that their recommendations are made based on what is “suitable” for you (with no mention of your best interest). Is this advisor a…
A.lRegistered Investment Advisor
B. Broker-Dealer
C. Could be either
“It is counterintuitive, but not all financial advisors are legally required to put their clients’ interests ahead of their own. Brokers, for example, are only required to recommend products that they believe are “suitable” for clients.
I don’t know about you, but that isn’t enough for me. An advisor’s fiduciary duty means always acting with clients’ best interests in mind, avoiding conflicts of interest where possible, and disclosing material conflicts wherever they exist. ”
What did my 10,000 followers think?
My followers didn’t do so hot. How do you stack up?
The three key differences between Registered Investment Advisors and Broker-Dealers?
Governing bodies
Fee structures
Standards they use for client recommendations.
Question #1 is a Registered Investment Advisor.
A fee-only financial planner is paid directly by clients for their services, as a flat fee, an hourly rate, or as a percentage of assets under management. Broker-dealers inherently involve commission-based transactions, and cannot be fee-only advisors.
Hiring a fee-only advisor is important because it guarantees transparency about the fee you are paying and how that fee is calculated. It also helps to ensure your advisor doesn’t have conflicts of interest in recommending one specific investment product over another, as they don’t receive commissions or kickbacks on the sale of products.
Question #2 could be either a Registered Investment Advisor or a Broker-Dealer.
“Fee-based” is a marketing term that seems created only to sow confusion. “Fee-only” is a clear designation that can be evaluated and enforced. “Fee-based” can mean whatever an advisor wants it to.
Although Registered Investment Advisors can be fee-only advisors, they are not required to be. They may instead be a “fee-based” advisor, who primarily works on a flat fee basis but can still receive commissions. Broker-dealers who charge a flat fee in addition to receiving commissions may also call themselves “fee-based” advisors.
A “fee-based” advisor does not guarantee the same transparency and openness about fees as the “fee-only” designation.
Question #3 is a Broker-Dealer.
Broker-Dealers are regulated by FINRA, while Registered Investment Advisors are governed by the SEC. FINRA and the SEC have different requirements for the standards their advisors must uphold.
Broker-Dealers are only required to meet a “suitability” standard - determining that a particular investment product or requirement is “suitable” to their client’s needs.
In contrast, Registered Investment Advisors must uphold the fiduciary standard and act solely in the best interests of their clients when offering financial advice.
The fiduciary standard is a stronger requirement for advisors and provides and additional layer of protection to clients who work with a Registered Investment Advisor versus a Broker-Dealer.
If you’re ready to interview new advisors, here are the 10 questions you should ask potential financial advisors:
#1 What are your qualifications and experience?
The bar to calling oneself a “financial advisor” is low. Like with any professional, you want someone who has years of experience and understands how to help guide individuals and families to grow their wealth and reach their financial goals.
Financial advisors come from a wide variety of educational backgrounds, so focus your qualification questions on relevant experience and post-grad professional certifications such as the CERTIFIED FINANCIAL PLANNER® designation.
#2 Have you worked with inheritors before?
Some advisors are generalists, working with any and all clients who come their way, while others specialize in helping a specific type of client via their niche. Which type of advisor works best for you will depend on your financial situation and needs.
Regardless of which you choose, your advisor should be experienced in helping people navigating similar financial issues and concerns as you. Give prospective advisors specific examples of issues or questions you encounter in your financial life and ask them to explain how they have helped clients through similar situations in the past.
#3 Are you a fiduciary?
It is counterintuitive, but not all financial advisors are legally required to put their clients’ interests ahead of their own. Brokers, for example, are only required to recommend products that they believe are “suitable” for clients.
I don’t know about you, but that isn’t enough for me. An advisor’s fiduciary duty means always acting with clients’ best interests in mind, avoiding conflicts of interest where possible, and disclosing material conflicts wherever they exist.
#4 How are you compensated? Are you a fee-only advisor?
There is a lot of confusion about “fee-based” versus “fee-only” advisors. “Fee-based” is a marketing term that does NOT mean advisors are prohibited from earning commissions on products they sell.
Look for a fee-only advisor. Fee-only advisors should provide you with a clear, set rate for the services they provide and cannot receive commissions or other incentive payments on the products they sell or trade.
#5 What is your fee structure?
Advisors should be open about their fee schedule and able to provide you with a clear expectation of how much you may pay on an annual basis. Be sure to ask if there are any other fees you can expect.
One note: many advisors refer to “basis points,” a piece of industry technical jargon. Basis points are parts of 1% - there are 100 basis points in 1%. So .85% is 85 basis points. Sometimes it feels easier to us than saying “point eight five percent” but that often isn’t clear to non-advisors.
#6 What is the all-in fee I will pay (including fund fees) if I become a client?
You pay your advisor their stated fee, but the investment funds your advisor selects for you will also have fees embedded in them. If your advisor uses actively managed mutual funds, these fees can be up to 2% annually or even more! Ask what investment fund fees will sit on top of the fee your advisor charges.
Also ask prospective advisors if your performance numbers will be reported gross or net of fees. Reporting performance numbers gross of fees obfuscates your true financial performance - you always want to see performance reported net of all fees (both investment fund fees and your advisors management or financial planning fee, if applicable).
#7 How will our relationship work?
Among fee-only advisors, compensation varies depending on the level of service provided. Be honest with yourself about how much help you need from a financial advisor.
Are you a DIY-er who loves managing their own money and just needs occasional check-ins for advice and guidance?
Or do you want a true partner, who will know and understand your finances inside and out and is excited about helping you build a sustainable path forward together for years to come? An advisor who will do the legwork to answer your financial questions, giving you time and mental space back in your day?
#8 What is your client meeting schedule? Do you meet outside that schedule?
Advisors vary widely on how often they meet with clients, how flexible that meeting schedule is, and what those meetings cover.
This question will help you understand how your advisor structures a year of client meetings and if that structure meshes well with how you would like to work with an advisor. Also ask how advisors handle one-off requests, if something urgent comes up in your financial life outside of their standard meeting schedule. A financial advisor exists to meet your needs, and you want to avoid getting into a situation where you desperately need advice and are unable to reach the professional who is supposed to be in your corner.
#9 Do you offer financial planning? If so, how do you approach the process?
Your advisor should offer financial planning. Period.
If they don’t, you’re probably overpaying.
Financial planning should be a comprehensive, evolutionary process that touches on every aspect of your wealth to create a living tool that is consistently revised and edited to provide you with the best possible guidance as your life circumstances change.
Ask prospective advisors if they can provide a sample financial plan to review, or if they can walk you through the deliverables they provide to clients during the financial planning process. Plan deliverables can vary from a one-page “action summary” updated annually to 100+ pages of technical charts, graphs, and analysis that is formally bound to gather dust on a shelf.
Ensure that how your advisor presents plans meshes well with how you learn and digest information. If you aren’t a big fan of highly technical details and get overwhelmed by huge volumes of information, then a static financial plan may not be the best fit for your needs.
#10 What is your investment philosophy?
The investment philosophy your advisor follows is an essential part of your relationship, as the building blocks for your future wealth generation. Look for someone who can effectively communicate about investments in a way you understand, is excited about educating clients on financial markets, and doesn’t focus solely on investments as the most important part of your overall financial picture.
If you are focused on living your values, ask prospective financial advisors what they do to ensure that your wealth is creating positive social impact while earning you market returns. Many advisors don’t focus in this area, but it is an essential point of consideration for values-focused individuals and families.
Are you ready to find a new advisor?
Book a FREE portfolio review call to understand how your portfolio is currently invested, hear my answers to the 10 questions you need to be asking financial advisors, and start building a plan to find a financial advisor who wants to create YOUR vision for the future, not force you into what they think you “should” be doing.
Let’s take the next step together
Understanding how to create a positive impact with your inheritance is not easy. Inheritors can encounter a wide variety of different situations requiring knowledge and finesse to manage. If you need more help, you can download The 20 Inheritance Terms You Need to Know, or reach out to Katherine Fox, CFP® and CAP®, a fiduciary, fee-only financial planner to learn how Sunnybranch can help you build a plan to align your inherited investments with your values.
