Whether you’re thinking about hiring a financial advisor or already working with one, it’s important to ask the right questions. These aren’t just conversation starters, they reveal whether the person helping you with your money truly has your best interests at heart.
In this post, we’ll walk through five key questions every Canadian should ask their financial advisor, and what answers might signal a problem.
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1. Are You Legally Required to Act in My Best Interest?
Most people assume financial advisors are always legally required to act in their client’s best interest. Unfortunately, that’s not always true in Canada.
Only a small percentage of advisors are fiduciaries professionals who are legally and ethically bound to put your interests ahead of their own. Typically, this includes:
- Advisors registered as Portfolio Managers
- Advisors with a Chartered Financial Analyst (CFA) designation
If your advisor isn’t a fiduciary, it’s still possible for them to be ethical and competent, but you’ll want to understand how they’re compensated and whether any conflicts of interest exist.
2. How Much Do You Charge, All In?
Fees can be one of the murkiest parts of the financial industry. Many Canadians have no idea what they’re paying — or what they’re getting for that price.
When asking about fees, make sure you ask:
- What are your advisory fees?
- Are there any embedded fees inside the investments you recommend?
- What is my total all-in cost?
Transparency here is non-negotiable. If the answer is vague or evasive, that’s a red flag.
3. Do You Specialize in Clients Like Me?
Would you see a general doctor for a heart condition, or a cardiologist?
Financial planning is no different. An advisor who specializes in retirement planning, for example, will understand the nuances of RRIF withdrawals, CPP timing, and income splitting better than someone who works with a wide mix of clients.
This question helps you understand whether the advisor is truly equipped to serve your specific needs.
4. Have You Ever Lost a Client? Why?
This is a bold question, but it can be one of the most revealing.
It’s not about prying into private matters. It’s about seeing how the advisor handles tough conversations. No one keeps every client forever, and an honest answer shows maturity and integrity.
If the advisor claims they’ve never lost a client, or if they fumble through the answer, that’s worth noting.
5. What Happens If Something Happens to You?
While not in the original transcript, this is a bonus question often overlooked: What’s the succession or continuity plan?
If your advisor retires or becomes unavailable, you should know who will take over your file and how the transition will be handled. This ensures your financial plan isn’t left hanging if something unexpected happens.
Final Thoughts
Choosing the right advisor is one of the most important decisions you’ll make for your financial future. Asking thoughtful, direct questions, and watching closely how they’re answered, can help you separate truly client-focused professionals from those who are just selling a product.
If you’re looking for a team that specializes in personalized, tax-efficient retirement planning, visit Trans Canada Wealth. We’re here to help Canadians retire with clarity and confidence.
