14 Questions To Ask a Retirement Planner at Your First Consultation
Written by
Nicole Spector
Edited by
Molly Sullivan
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A content retirement in the U.S. is hardly an easy achievement. Americans may work well into their golden years in order to have enough for this milestone, and many fear that, no matter how hard they try, they just won’t have enough to get by. Such fear isn’t unwarranted; the majority of Americans aren’t on track to comfortably retire.
Retirement planners specialize exclusively in helping people financially prepare for their golden years. So, if you want the best retirement you can have, retaining the services of a retirement planner is a savvy move. But how do you get started with these professionals?
Here are 14 questions to ask a retirement planner at your first consultation.
What services do you offer?
Not all financial experts offer the same services, so be sure to, off the bat, ask any retirement planner you consult with exactly what they can do for you and how.
“Understanding the services a financial planner offers is key because you want to ensure they can meet all your financial needs,” said Jeff Rose, CFP, former CEO and founder at Alliance Wealth Management, LLC. “Knowing what they offer helps you decide if they’re the right fit for your financial journey.”
Are you a fiduciary?
You need to know immediately whether the retirement planner is a fiduciary. If they aren’t, you could be in for a bad run.
“Asking if a financial planner is a fiduciary is crucial because it means they’re legally obligated to act in your best interest,” Rose said. “This reassurance is important for trust and transparency, ensuring they make recommendations that benefit you, not their commission.”
What are your qualifications?
You must not only know what a retirement planner offers in terms of services but also know their professional background and qualifications.
“Knowing a financial planner’s qualifications gives you insight into their expertise and credibility,” Rose said. “Certifications like CFP (certified financial planner) or a strong background in finance suggest they have the knowledge and skills to manage your investments wisely.”
Has anyone filed a formal complaint against you?
Whenever hiring a professional of any kind, it’s important to ask whether anyone has ever filed a formal complaint against them or their business.
“Asking about formal complaints is a direct way to gauge a planner’s reliability and integrity,” Rose said. “A history of complaints can be a red flag, indicating potential issues with their service or ethical conduct.”
How long have you been in the business?
“Is the advisor new to the business or a veteran?” said Melissa Murphy Pavone, director – investments, CFP, CDFA, at Oppenheimer & Co. Inc. “You want to make sure they have experience in the industry.”
What is your investment philosophy?
Not all retirement planners have the same approach when it comes to their work. Find out as much as you can about their investment philosophy.
“Do they have discretion and buy and sell individual holdings? Do they hire third-party money managers? Do they prefer growth over value? Or passive vs. active?” Pavone said. “There is no ‘right’ answer but it is important to make sure you understand.”
Can I speak to any existing clients?
Don’t rely on review sites alone. Talk to someone who is a current client of the retirement planner you’re speaking to.
“It is hard to prove you provide a good service,” Pavone said. “Your reputation is everything, as there are no ‘report cards’ for financial professionals. Ask to speak to an existing client to hear how their client experience has been.”
What is your fee structure?
How exactly does your retirement planner get paid? You need to know all the details.
“Are they fee based? Or fee only? Do they charge on assets under management or a flat fee?” Pavone said. “Again, no right answer, but necessary to know how they get paid?”
Do you work with other people like me?
Yes, your situation is unique, but you do fall into a certain category. We all do, even if just from a socioeconomic standpoint. It’s important to work with a retirement planner who is skilled in working with people like you.
“You will want to work with an advisor who helps other people who are in, or are approaching, retirement like you,” said Keith Spencer, CFP, founder and financial planner at Spencer Financial Planning.
How will we implement and monitor an income plan during retirement?
Different advisors take different approaches to this, and you’ll want to understand and agree with the advisor’s process.
How much up and down should I expect with my investments?
Investments have a sneaky way of fluctuating. Ask your retirement planner just how many bumps you can anticipate with yours.
“This can be calculated within a range depending on your chosen risk level,” said Brian Kuhn CFP, CLU, SVP and financial advisor at Wealth Enhancement Group. “It would be a red flag for the advisor to say they avoid downturns or limited risk before knowing how the portfolio will be allocated.”
How much money can I expect to spend on family caregiving?
If your parents or other family members may be relying on you for support in their own golden years, ask your retirement planner about how much you should set aside to meet their needs.
“Parent care is not a matter of if, but of when,” said Joy Loverde, an author who specializes in the topics of caregiving, solo aging and aging parents. “Adult children who initiate conversations with parents and their financial advisors early on have the advantage of time to budget and put aside funds for this cause.”
Do you send out content for my education?
“Ask this if it’s important to you or if you feel you need literature to have on hand to learn more when you think is right,” Kuhn said. “Would you agree to meet my trusted contacts, who might help me decide on an advisor? The advisor should be willing to meet with your family members or trusted contacts who are helping you make a decision.”
How will we track my retirement progress?
“It’s important to understand how you and your financial planner will track your retirement progress to ensure you’re on the right path,” Rose said. “Regular updates, meetings and clear metrics for success help keep your retirement goals in focus and allow for adjustments as needed.”
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