Questions To Ask A Financial Advisor
This list of questions is designed to help you see “behind the curtain” of our firm and others you might consider hiring.
1) Are your recommendations truly in my best interest?
Imagine going to your doctor with a concern about your heart. Before running any tests, the doctor tried to sell you a pacemaker.
The doctor then explained that you needed to act today before prices went up. Later you learned that the doctor was paid extra to promote this particular brand of pacemaker.
While absurd for the medical profession, this scenario unfortunately resembles much of the investment world.
As a firm, 7 Saturdays Financial takes very seriously the Fiduciary duty to always act in the client’s best interest (vs. just trying to sell you a product). In fact, we have no products to sell – just advice.
✔ We are legally required to put your interests before ours at all times
✔ Our firm’s pricing model was specifically designed to minimize conflicts of interest
✔ We recommend to clients the same investment strategies used in our personal and family accounts
As you’re evaluating financial professionals to work with, ensure that they are “fee-only”, which means the only way they are compensated is directly from the clients they work with. That means no commissions or kickbacks. The “fee-only” model reduces conflicts of interest and increases transparency.
Pro tip: Any financial professional you’re evaluating should have no issue providing you (in writing) a statement that they act as a fiduciary at all times.
2) Will your recommendations be primarily focused on one area, or will they be comprehensive?
For our clients, we serve as a single point of contact for all their financial needs.
We evaluate and assist with all the pieces of the retirement planning puzzle, including:
✔ Retirement income planning
✔ Strategic tax planning
✔ Investment management
✔ Tax-efficient charitable giving
✔ Healthcare/Long-Term Care planning
✔ Insurance and estate guidance
✔ … and more
Plan details and action items are coordinated with accountants, attorneys, insurance brokers, and other vetted professionals in our network as needed.
3) How many clients do you serve?
7 Saturdays Financial currently serves ~30 families across the United States. We have intentionally limited the size of our practice to provide an exceptional level of service to every family who has entrusted us with their financial future.
7SF is designed to serve a maximum of 40-50 families on an ongoing basis. This ensures every client receives the attention they deserve and the planning to help them achieve their financial goals.
Pro tip: The unfortunate reality is that most big box firms bury their advisors with hundreds of clients and it’s impossible to provide “real” comprehensive planning at that volume.
4) Do you have the knowledge and experience necessary to navigate the complicated financial planning and tax world?
Allen founded 7 Saturdays Financial in early 2022. He’s a CFA Charterholder and has a Master’s Degree in Business Administration (MBA). He has served over 45 families for their planning needs, and his background includes 10 years of experience in corporate finance. As a dedicated “lifelong learner”, he studies thousands of pages of financial text every year and is routinely trained by the country’s top minds in financial and tax planning.
Marie is a CERTIFIED FINANCIAL PLANNER® and Certified Student Loan Professional (CSLP) who has worked for some of the top firms in the industry. She brings over 15 years of experience in financial services to the team, and leads our operations and client service to make sure nothing falls through the cracks.
5) Do you have any client reviews I can read?
7 Saturdays Financial has 10+ ⭐⭐⭐⭐⭐ reviews, available at Wealthtender
Understanding the experiences of existing clients is an important step in researching which professional to hire – whether that’s a doctor, a lawyer, or a financial advisor.
6) How often will I hear from you?
Monthly, or more often if needed. We also hold formal reviews with clients at least 2 times annually.
Client education is a big focus for our firm. We publish regular newsletters explaining what the headlines mean for our clients and break down important retirement topics (in plain English!).
We also understand life happens outside of a semiannual meeting calendar. As your trusted advisor, we’re here to answer questions, provide analysis, and address your needs via email, phone call, or in-person/Zoom meetings.
7) Where do you keep my investments and how can I see them?
For your safety and convenience, 7 Saturdays Financial uses Charles Schwab and Altruist as third-party custodians for our client investment and retirement accounts.
- Schwab administers more than $9.8 trillion in assets for more than 36 million accounts.
- Altruist is a growing, technology-focused custodian held to the same strict regulatory standards as other firms (Schwab, Fidelity, etc.)
As trusted custodians, Schwab and Altruist safely hold your investment accounts and provide reporting to you and the IRS each year. Your accounts can be viewed at any time on the custodian websites or through RightCapital, our advanced planning software.
During the planning process, we will discuss which custodian will be the best fit for your needs.
8) What documents do you request during the data gathering process?
In order to create a quality financial plan, we request an extensive list of documents – almost everything in your life with a number on it! Although it does take some effort to gather these documents, financial planning is very much a garbage in = garbage out process.
The answer to this question is a useful “litmus test” to understand if you’ll be receiving comprehensive financial planning.
Consider it to be a big red flag if tax returns, Social Security and insurance statements, etc. are not on the list!
9) What will it cost (in dollars, not %) to work with you?
7 Saturdays Financial is proud to be a flat-fee advisory firm.
This modern pricing model determines cost based on the service you receive and the complexity of your situation, not the size of your investment portfolio.
For full-service wealth management, our minimum fee is $10,000 per year for individuals or $12,000 per year for couples.
Some factors that can increase planning complexity/cost include:
• Non-retirement (taxable brokerage) holdings over $1 million
• Net worth approaching estate tax limits
• Closely-held business interests
• Real estate investment properties
We will provide a customized proposal for you once we understand your situation and your needs. These fees are a direct reflection of the time and expertise required to do real financial planning.
High net worth (HNW) families can often realize cost savings by choosing a flat-fee firm rather than paying a percentage of their portfolio value. Additionally, having the fee uncorrelated to portfolio size means we are not biased toward giving recommendations that would keep money in your portfolio vs. paying off debt, gifting to family/charity, buying an annuity, or actually spending money in retirement.
If you’re considering a firm that uses the percentage-based pricing model, be sure to calculate how much that 1% costs you in dollars. You might be surprised!
Due to inflation and increases in the cost of doing business, it is reasonable to assume that the pricing for our advisory relationship will increase over time.
It only makes sense to hire a financial advisor, or any professional, if the value they provide exceeds the cost. This value can be a combination of: time/energy saved, peace of mind, preventing costly mistakes, lower expected lifetime taxes due to strategic planning, lower investment fund expenses, and potentially higher long-term investment performance.
About the author: Allen Mueller, CFA, MBA, is an “engineer turned finance nerd” and founder of 7 Saturdays Financial. The core focus of 7 Saturdays Financial is helping high performers retire with confidence and make the most of their 7 Saturdays a week.
