When markets are volatile—or when headlines say stocks are hitting “all-time highs”—it’s natural to feel two competing emotions at once:
- “I don’t want to take unnecessary risk.”
- “I also don’t want to miss out on potential growth.”
At the same time, many families are asking a separate (but related) question: How do we choose the right financial advisor—and how do we know the fees are fair?
This post brings those conversations together in one place. You’ll find:
1. A practical checklist for evaluating an advisor
2. Questions worth asking in a first meeting
3. A clear framework for understanding advisory fees (and how to compare them)
4. A grounded way to think about market volatility and “maximizing returns,” especially when markets are near record levels
This is for educational purposes only and not individualized investment advice.
Part 1: “Why should we go with you?” (What to look for in any advisor)
A good advisor isn’t defined by a catchy pitch or a hot take on the market. In our experience, the best long-term relationships usually come down to four durable traits—traits you can verify.
1) A fiduciary standard you can understand
Many clients start with a simple expectation: “You’ll put our interests first.” The important step is confirming what legal standard actually applies to the person and firm you’re considering.
Registered investment advisers (RIAs) generally owe clients a fiduciary duty under the Investment Advisers Act of 1940, which includes duties of care and loyalty. That doesn’t mean every decision is perfect—markets are uncertain—but it does mean advice should be provided in the client’s best interest, with conflicts disclosed and managed.
What to ask:
- “Are you a fiduciary at all times when providing advice?”
- “Are there any conflicts of interest I should understand—and how do you mitigate them?”
Helpful sources:
- SEC (Investor.gov), “Investment Adviser vs. Broker-Dealer”: https://www.investor.gov/introduction-investing/investing-basics/role-sec/investment-adviser-vs-broker-dealer
- SEC, “Form CRS (Customer Relationship Summary)”: https://www.investor.gov/introduction-investing/investing-basics/glossary/form-crs
2) A repeatable planning process (not just products or predictions)
A trustworthy advisor should be able to explain their process in plain English:
- How they learn what matters to you (goals, timeline, values)
- How they translate goals into a plan (cash flow, retirement, taxes, insurance, estate)
- How investments support the plan (allocation, diversification, rebalancing)
- How progress is tracked (meeting cadence, reporting, adjustments)
A process matters most when emotions run high—during sudden downturns, scary headlines, or exuberant rallies. A plan is what keeps decisions consistent when feelings are not.
3) Transparent communication and scope of service
One of the most overlooked differentiators is what happens after the account is opened.
Ask what you get year after year, not just what happens at onboarding. For example:
- Are meetings proactive or only “as needed”?
- Will you receive retirement cash-flow planning and withdrawal sequencing?
- Is tax planning included or coordinated with your CPA?
- Will someone help with required minimum distributions (RMDs), charitable gifting strategies, or beneficiary reviews (as applicable)?
- If you call with a question, who responds—and how quickly?
4) Credentials, experience, and accountability
Credentials don’t guarantee quality, but they can indicate training and commitment to standards.
What to look for:
- Professional designations relevant to planning (e.g., CFP®) or investment management
- Firm registration and disclosures
- A clearly documented fee schedule
Where to check:
- SEC’s Investment Adviser Public Disclosure (IAPD): https://adviserinfo.sec.gov/
- FINRA BrokerCheck (if the professional is also registered with a broker-dealer): https://brokercheck.finra.org/
Part 2: Questions to ask when interviewing a financial advisor
Most people interview at least two or three advisors. That’s smart. Here are questions that tend to produce clear, decision-useful answers.
A. Relationship and philosophy
1. “Who is your typical client, and what problems do you help them solve?”
2. “How do you define success for a client relationship?”
3. “How often will we meet, and what triggers a mid-year check-in?”
B. Planning specifics
4. “Will you provide a written financial plan? What’s included?” (Retirement projections, Social Security analysis, insurance review, tax considerations, estate coordination, etc.)
5. “How do you handle major life events?” (Job change, inheritance, divorce, sale of a business, caring for parents)
C. Investment approach and risk management
6. “How do you build portfolios—and how do you manage downside risk?”
7. “How do you think about diversification and rebalancing?”
8. “How do you decide if we should make changes when markets are volatile?”
D. Fees and conflicts
9. “How are you paid? Please walk me through every fee I might pay.”
10. “Do you receive compensation from any third parties?”
11. “Where can I see your fees in writing?” (Form ADV Part 2A, advisory agreement, and/or Form CRS)
Helpful sources:
- SEC (Investor.gov), “Choosing a Financial Professional”: https://www.investor.gov/introduction-investing/investing-basics/how-choose-investment-professional
- FINRA, “Paying for Investment Advice”: https://www.finra.org/investors/learn-to-invest/choosing-investment-advice/paying-investment-advice
Part 3: How to compare advisory fees (and what “reasonable” really means)
Fees matter—because what you pay is one of the few variables you can control. But a fair comparison requires looking at total costs and what’s actually included.
1) Understand the main fee models
Common advisory fee approaches include:
- Assets Under Management (AUM) fee: A percentage charged on assets managed (often tiered so the percentage can decline as assets increase).
- Flat fee or subscription: A set annual or monthly amount.
- Hourly or project-based planning: Pay for advice when needed.
- Commission-based transaction compensation: More common in brokerage relationships; can introduce different incentives and disclosures.
You can read how an adviser is compensated in their Form ADV (and potentially Form CRS).
Source: SEC overview of research and using disclosures: https://www.investor.gov/introduction-investing/investing-basics/how-choose-investment-professional
2) Compare “all-in” costs, not just the advisor’s line item
Two advisors can charge the same advisory fee but have very different “all-in” costs if one uses:
- Higher-cost investment products
- Additional platform/custody charges
- Trading costs
- Fund expenses well above market norms
When comparing firms, ask for a simple breakdown:
- Advisory fee
- Underlying investment expenses (expense ratios)
- Any additional platform or account fees
Why it matters: The fee you see on an invoice is only part of the picture.
3) Fee comparison: the right question isn’t “Who’s cheapest?”
A more helpful question is:
“For the fee, what ongoing planning, implementation, and accountability do we receive—and what risks do we reduce by having a professional process?”
For some households, a low-cost, do-it-yourself approach may be appropriate. For others—especially where retirement income planning, tax coordination, behavioral coaching, and complexity are involved—the value often comes from avoiding costly mistakes and building a repeatable decision framework.
4) What we mean by fee transparency
When clients ask, “How do your fees compare to the industry?” it’s important to be careful: there isn’t one universal ‘industry fee’ because pricing varies by household complexity, service scope, and assets managed.
A more reliable way to compare is to request:
- The firm’s fee schedule in writing
- A description of what services are included (and what costs extra)
- A plain-English explanation of conflicts, if any
Then you can compare apples-to-apples across the firms you’re interviewing.
Source: FINRA on understanding how you pay for advice: https://www.finra.org/investors/learn-to-invest/choosing-investment-advice/paying-investment-advice
Part 4: Volatility vs. “maximizing returns” (especially at all-time highs)
Let’s address the tension many investors feel:
- You want growth to keep up with inflation and maintain your lifestyle.
- You also don’t want market swings to derail retirement timing, cash needs, or peace of mind.
The core truth is that higher expected returns generally require accepting higher volatility and the possibility of loss in the short and intermediate term. There is no permanent “high return, low risk” switch.
1) All-time highs are normal—so is volatility
It can feel unsettling to invest when markets are near record levels. But market indexes tend to make new highs over time because economies grow, productivity improves, and companies generate earnings.
That said, new highs do not eliminate the risk of drawdowns. Markets can and do decline, sometimes sharply, and often without warning.
If you’d like to see long-term index history (including periods of new highs and drawdowns), FRED provides publicly available data for major indexes.
Source: Federal Reserve Bank of St. Louis (FRED), S&P 500 series: https://fred.stlouisfed.org/series/SP500
2) A better goal than “maximize returns”: optimize for your outcomes
“Maximize returns” sounds good, but it’s incomplete. A portfolio can be positioned for high long-term growth and still be a poor fit if it forces you to sell at the wrong time.
A more practical planning target is:
- Earn a level of return that is aligned with your goals, while
- Taking only the amount of risk you can financially and emotionally tolerate, and
- Maintaining liquidity for near-term spending needs
This is especially important for:
Pre-retirees
If you’re within ~5–10 years of retirement, sequence-of-returns risk becomes more relevant. A major decline early in retirement (or right before) can have an outsized impact on sustainability—particularly if withdrawals begin during a downturn.
Retirees
When you’re drawing income, the plan often benefits from a clear “spending strategy” (for example, identifying which assets are intended for near-term withdrawals vs. longer-term growth). The goal is to avoid being forced into selling growth assets after a decline.
3) What to do when volatility shows up (a practical checklist)
Volatility is inevitable; a process helps.
Here are actions that may be worth considering in many plans (depending on goals and circumstances):
1. Reconfirm time horizon: Money needed in 0–3 years should usually be treated differently than money intended for 10+ years.
2. Stress-test cash flow: Do you have a cash reserve or short-term bond allocation that supports spending needs?
3. Rebalance thoughtfully: Rebalancing is a disciplined way to manage risk—often trimming what has grown and adding to what has lagged—rather than reacting emotionally.
4. Review concentration risk: When markets run up, portfolios can become more concentrated than intended (for example, a single sector or a handful of large stocks dominating exposure).
5. Limit “headline trades”: Big financial decisions made in the heat of a news cycle can be hard to reverse.
Source: SEC (Investor.gov) on investing basics and risk: https://www.investor.gov/introduction-investing
4) A note on market timing
Many investors try to “wait for a pullback” when markets are high—or try to jump out during scary periods and back in when things feel better.
The challenge is that timing requires being right twice: when to get out and when to get back in. While it’s tempting, it can unintentionally turn volatility into permanent loss if the re-entry never happens—or happens after prices have already recovered.
That’s why, for many long-term investors, the emphasis is on:
- A suitable allocation
- Diversification
- Rebalancing discipline
- A plan for withdrawals and cash needs
Not predictions.
Part 5: Bringing it together—how we aim to serve clients (and how you can evaluate us)
If you’re deciding whether to work with our firm, we’d encourage you to evaluate us the same way you’d evaluate any advisor:
1. Clarity: Can we explain our process, our philosophy, and our recommendations in plain English?
2. Fit: Do we understand what you’re trying to accomplish—and do you feel heard?
3. Transparency: Are fees and conflicts clearly disclosed in writing?
4. Discipline: Do we have a repeatable approach for volatile markets and changing conditions?
5. Service: Do you know what ongoing planning and communication you will receive?
And if you’re primarily concerned about investing at (or near) market highs while still wanting growth, our conversation typically starts here:
- What do you want your money to do over the next 1, 5, 10, and 20 years?
- What level of short-term decline could you tolerate without abandoning the plan?
- What cash needs are coming up that the portfolio should be prepared for?
From there, we can build a strategy that’s designed for the real world: one where markets fluctuate, headlines change, and long-term goals still matter.
Disclosures
This article is for informational and educational purposes only and does not constitute investment advice, a recommendation, or an offer to buy or sell any security. Any discussion of market conditions is general in nature and may not apply to your specific circumstances. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. Consider your objectives, risk tolerance, and time horizon before investing. For additional information about an investment adviser, including services, fees, and disclosures, review the adviser’s Form ADV and Form CRS (when applicable) available at https://adviserinfo.sec.gov/.