5 Questions to Ask a Financial Advisor in Michigan Before You Hire Them
I’ve had hundreds of first conversations with people who are thinking about working with a financial advisor. And one of the most common things I hear is some version of: “I’m not even sure what I’m supposed to ask.”
That’s completely understandable. Financial advising can feel opaque from the outside — full of credentials, jargon, and vague promises about “growing your wealth.” So here’s what I’d want to know if I were on the other side of the table, evaluating a Michigan financial advisor before hiring them.
These five questions cut through the noise quickly. The answers will tell you everything you need to know.
1. “Are You a Fiduciary — All the Time?”
This is the most important question on this list, and I’d ask it first.
A fiduciary is legally required to act in your best interest at all times. Not most of the time. Not when it’s convenient. All the time. Surprisingly, many financial advisors in Michigan are not fiduciaries — or they operate under a weaker “suitability” standard that only requires their recommendations to be “suitable,” not necessarily the best option for you.
Listen carefully to how they answer. A clear, unqualified “yes” is what you’re looking for. If there’s hesitation, conditions, or a long explanation — that’s your answer too.
At Redwood Wealth, we are fiduciaries always — no exceptions, no fine print.
2. “Exactly How Do You Get Paid?”
This question matters because how an advisor gets paid directly affects the advice they give you.
There are a few common compensation models:
- Commission-based: The advisor earns money when they sell you a product. Their income depends on what you buy.
- Fee-based: They charge fees and may also earn commissions. There can be conflicts of interest.
- Transparent, direct compensation: You pay the advisor directly. No commissions, no third-party payments, no product sales.
The cleaner the compensation structure, the fewer conflicts of interest. A good Michigan financial advisor will be completely transparent about how they’re paid — before you ask twice. If you have to dig for the answer, that tells you something.
3. “What Does Your Planning Process Actually Look Like?”
There’s a meaningful difference between an advisor who manages your investments and one who builds a comprehensive financial plan — covering retirement, taxes, insurance, estate planning, and investments, all working together.
Ask them to walk you through what happens after you sign on. Specifically:
- How do they build your initial plan?
- How often will you meet after that?
- What happens when your life changes — a new job, a health event, an inheritance?
- Who else is on their team, and who will you actually be working with?
The answers will quickly tell you whether you’re talking to someone who’ll be genuinely engaged with your financial life — or someone who’ll hand you a plan and check in once a year.
4. “Do You Have Experience With Clients Like Me?”
Financial planning isn’t one-size-fits-all. The advice that’s right for a 35-year-old tech executive in Rochester Hills is different from what’s right for a 58-year-old automotive engineer in Auburn Hills who’s five years from retirement.
Ask the advisor directly: who do they typically work with? What’s their experience with:
- Michigan-specific tax considerations — pension deductions, Social Security treatment, state income tax
- Clients in your industry — automotive, healthcare, tech, manufacturing
- Your specific situation — pre-retirement planning, equity compensation, business ownership, or a recent life transition
A good advisor will give you specific, concrete answers. A vague “we work with all kinds of clients” is worth probing further.
5. “What Happens in Our First Year Together?”
This question separates advisors who have a clear, repeatable process from those who are winging it. A strong Michigan financial advisor should be able to tell you exactly what the first 90 days look like — what gets built, what gets reviewed, what decisions you’ll make together.
What you’re listening for:
- A structured onboarding process, not just “we’ll get to know each other”
- A clear timeline for when your plan will be complete
- Specific deliverables — what will you actually have in hand after the first few months?
- How they handle implementation — do they coordinate with your accountant and estate attorney, or leave that to you?
The first year sets the tone for the entire relationship. Make sure you know what you’re signing up for.
One More Thing: Trust Your Instincts in the First Meeting
Beyond the five questions above, pay attention to how the conversation feels. Financial planning involves sharing details about your income, your debts, your fears, and your family’s future. That requires real trust.
Most reputable financial advisors in Michigan — including our team at Redwood Wealth — offer a free first consultation with no obligation. Use it. Ask every question on this list. See how they listen, how they respond, and whether you leave feeling clearer than when you walked in.
That clarity is what a good financial advisor should give you from the very first conversation.
Ready to Ask Us These Questions?
Fiduciary • Independent • Serving Michigan
Frequently Asked Questions
Ask whether they are a fiduciary at all times. A fiduciary is legally required to act in your best interest — not just some of the time. Many Michigan financial advisors are not fiduciaries, or only operate as fiduciaries in certain contexts. If the answer isn’t a clear, unqualified yes, keep looking.
Check FINRA BrokerCheck at finra.org/brokercheck — it’s free and shows licensing, complaints, and disciplinary history. Also verify they’re registered as an Investment Advisor with the SEC or Michigan’s LARA. If they hold a CFP designation, verify it at cfp.net.
A fiduciary is legally required to act in your best interest at all times. A non-fiduciary advisor operates under a “suitability” standard — their recommendations only need to be suitable for you, not necessarily the best option available. That distinction can have a significant impact on the advice you receive.
Financial advisors typically charge either a percentage of assets under management (usually 0.5–1.5% annually) or a flat annual planning fee. Always ask for a clear, written fee breakdown before you engage anyone. A good advisor will be fully transparent about costs from the very first meeting.
A local Michigan financial advisor will typically have a better understanding of state-specific tax rules, the local employer landscape, and the cost of living in your community. This kind of local knowledge shows up directly in the quality of your retirement plan and financial strategy.
