Choosing someone to manage your money is a big decision. Like any big decision, a little education and the right questions make it easier to move forward with confidence. Here are the key things to check before you hire an advisor.
1. Start with Fiduciary Status and Credentials
Look for a fiduciary.
A fiduciary is legally required to put your interests ahead of their own. Only Registered Investment Advisers (RIAs) are true fiduciaries by law. To become one, an advisor must pass the Series 65 exam and register their firm with either their state or the SEC.
Top credentials add credibility.
Designations aren’t required, but they show extra training and ethics standards. The premier credential is the CFA® (Chartered Financial Analyst) for investment management, followed closely by the CFP® (Certified Financial Planner) for broad financial planning. Others you may see—CPA/PFS or ChFC®—are also strong signals of expertise.
Pro Tip: You can verify an advisor’s credentials and review their professional history by searching for them on FINRA’s BrokerCheck. The report also shows any disciplinary actions or past regulatory issues, giving you a clear picture of their record.
2. Understand How They’re Paid
Compensation reveals incentives. Advisors who earn commissions get paid when they sell products - which can be an obvious conflict of interest. A fee-only structure (this is often a percentage of assets under management, or AUM) aligns your goals with theirs: the more your portfolio grows, the better for both of you.
Questions to ask:
- “Are you fee-only or do you earn commissions?”
- “What percentage do you charge and what’s included?”
3. Evaluate Access and Communication
Money questions don’t wait for business hours. Ask how often you’ll meet (twice a year is a good minimum) and whether you’ll have direct access to the advisor when big financial decisions arise.
Sample questions:
- “Will I always speak with you, or with a service team?”
- “Are there minimum account sizes or tiers of service?”
4. Do Your Own Due Diligence
It’s important to confirm that your advisor’s background and experience are legitimate. Start by reviewing their Form ADV, a public filing that outlines services, fees, potential conflicts of interest, and any disciplinary history. Simply visit adviserinfo.sec.gov, search the advisor or firm, and download the “Part 2 Brochure.” You can also check FINRA’s BrokerCheck to see their work history and any regulatory disclosures.
Bottom Line
A trustworthy advisor is:
- A fiduciary registered with the SEC or state.
- Highly credentialed (ideally CFA® or CFP®).
- Transparent about fees and free of commission conflicts.
- Accessible and communicative when you need them.
Follow these steps and you’ll quickly know whether an advisor deserves a seat at your financial table and whether your money is in good hands!
About Us
At Oceanic Capital Management, we act as true fiduciaries and hold top professional credentials—Tom is a CFP® and Doug is a CFA®. We operate on a fee-based structure that keeps our interests aligned with yours and prioritize being accessible whenever you need us, even staying in touch by text during key financial moments.
If you’re ready to take the first step toward your financial goals, we’d love to talk. Consultations are always free and completely pressure-free. Schedule a free consultation today!