2. How do you get paid?
This question is essential so you can understand how you're paying for any services you receive
Many advisors charge an AUM fee, or a fee corresponding to the assets under management (AUM). For example, 1% of assets managed is a common fee structure.
This may not sound like much. But the reality is a bit surprising: A 1% fee applied to a $1 million balance is $10,000 per year, and the fee will increase proportionally as the account balance increases. Over time, and due to the nature of compound interest, fees add up quickly.
Other advisors have different fee structures, which vary depending on whether they actually manage money for you. For example, some advisors charge trading commissions on any orders they place on your behalf.
Fee-only financial planners, on the other hand, typically charge you on an hourly basis or charge a fixed-fee retainer for ongoing access to advice. Some might also be willing to work on a project basis, depending on the depth and complexity of your needs.
The only way to know is to ask -- but be sure you understand the dollar amount you're paying for any service. Don't be satisfied with just a percentage amount!