Most people know they should periodically shop their insurance, but how often should you review your financial advisor?
Rates change. Companies change. Your needs change.
The same logic applies to financial advice.
But there’s one question almost nobody asks:
What is my advisor doing with the money I’m paying them?
Not your investment money. Their money. The fees you pay.
Why You Should Review Your Financial Advisor Every 3–5 Years
Many people hire a financial advisor and never revisit the decision.
That’s surprising because financial advice often costs far more than insurance premiums over a lifetime.
Just as you periodically review your insurance coverage, it’s wise to review your financial advisor relationship every few years.
Not because you’re unhappy.
Not because you’re looking for the cheapest option.
But because firms change. Ownership changes. Services change. And your financial needs evolve.
Every three to five years, ask yourself:
- Am I receiving valuable advice?
- Do I understand what I’m paying?
- Has the firm changed since I became a client?
- Do I know where my fee dollars go?
- Does this firm still reflect my values?
Reviewing your advisor doesn’t mean switching advisors.
It means making an informed decision.
As You Change, Your Financial Advisor Should Still Fit
One lesson I often share with high school students is that life rarely unfolds exactly as planned.
The career you dream about at 18 may not be the career you have at 28.
The priorities you have at 28 may not be the same priorities you have at 38.
And the values that matter most to you at 38 may be very different by the time you’re 58.
That’s normal. People grow. Families grow. Circumstances change.
The same reality applies to financial advice.
Many people hire a financial advisor during one season of life and never stop to ask whether that advisor is still the right fit years later.
Maybe you once prioritized investment performance above everything else.
Today, you may care more about tax planning, retirement readiness, charitable giving, local community involvement, or simply having someone who communicates in a way that fits your life.
None of those priorities are wrong.
They’re simply different.
As your values evolve, it’s worth asking whether your advisor’s values, business model, and approach to planning still align with your own.
The goal isn’t to constantly switch advisors.
The goal is to periodically confirm that the person helping guide your financial future still understands what matters most to you today, not what mattered most ten years ago.
Follow the Money: Where Do Your Financial Advisor Fees Go?
Most people understand that when they buy insurance, their premium doesn’t all stay with their local agent. Corporate gets their cut.
The same principle applies to financial advice.
When you pay a financial advisor $2,000, $5,000, or even $10,000 per year, that money is distributed somewhere.
The important question is:
Where does it go?
Many clients never ask. Yet understanding how advisor fees are allocated can provide valuable insight into the business you’re supporting.
A Question Every Client Should Ask
At your next review meeting, ask:
“What percentage of the fee I pay stays with you, and what percentage goes to your corporate office or parent company?”
It’s a simple question. And it’s a reasonable one.
Some advisors keep most of the revenue they generate.
Others may retain only a portion while the remainder supports a larger organization, private equity ownership group, or national firm. Afterall, there’s a reason they can put their name on STADIUMS.
But transparency matters.
As a client, you deserve to understand who benefits from the fees you’re paying.
Always check to see your advisor’s status on the FINRA website to see if they’re a broker or not.
Do Your Advisor’s Values Match Your Own?
More consumers today are intentional about where they spend money.
Local matters. We support local restaurants, buy from local businesses, use community banks over the big chains.
Financial advice deserves the same consideration.
If community involvement matters to you, consider asking:
- Does my advisor live in the communities they serve?
- Do they volunteer locally?
- Do they sponsor local events and organizations?
- Do they contribute to local economic growth?
- Or are my fees primarily supporting a distant corporate headquarters?
There is no universally correct answer.
But understanding the answer can help you make a more informed choice.
Questions to Ask When Reviewing a Financial Advisor
Whether you’re hiring a new advisor or reviewing your current relationship, ask:
1. How Are You Compensated?
Understand exactly how the advisor is paid and whether any conflicts of interest exist.
2. What Services Are Included?
Financial planning, tax planning, retirement planning, investment management, and ongoing coaching may all be included or charged separately.
3. Has Firm Ownership Changed?
Many advisory firms have been acquired by larger organizations in recent years. Understanding ownership can provide insight into future priorities.
4. What Percentage of My Fee Stays With the Advisor I Work With?
This helps clients understand how fees are distributed within the organization.
5. Are You Still the Best Fit for My Situation?
Your needs change over time. A periodic review helps ensure your advisor relationship continues to meet those needs.
Advice Is About More Than Performance
What I’ve found is most people choose a local financial advisor based on professional produced commercials.
And most have no idea how much they’re actually being charged.
But financial advice should be a relationship built on trust, communication, transparency, and shared values.
The best advisor relationship isn’t necessarily the cheapest.
And it isn’t necessarily the one with the largest firm behind it.
It’s the one that helps you make confident financial decisions while aligning with your goals, priorities, and values. Not just spewing corporate talking points they get in a weekly email.
The Bottom Line
Every three to five years, take time to review your financial advisor relationship. (Just like you should your insurance.)
Ask yourself:
- Am I receiving valuable advice?
- Do I understand what I’m paying?
- Do I know where my fee dollars go?
- Does this firm reflect my values?
- Am I confident in the relationship?
- Does this advisor still fit the person I’ve become?
If the answer is yes, you can move forward with confidence.
If not, it may be worth exploring what other options are available today.
Because understanding who you’re paying, and what you’re paying for, is an important part of making sound financial decisions.
And just as importantly, it’s an opportunity to ensure the person guiding your financial future still shares the values that matter most to you today.
If you’re interested in shopping your financial advisor options, I’m always happy to give you your options. Schedule a free chat here!
Disclaimer
Disclaimer: I do not, have not, and never will claim to be a professional writer. Please excuse any spelling and/or grammatical errors. All information provided is for educational purposes only and is not intended to be investment advice. The information being provided via hyperlinks may be from third-party websites and is strictly as a courtesy/convenience. When you link to any of the web sites provided here, you are leaving this website. I make no representation as to the completeness or accuracy of information provided on these websites. I am not a CPA or attorney and anything included in this article may not be interpreted as tax or legal advice.