Why It’s Important to Interview Your Advisor
If you’re searching for a fee-based or fee-only financial advisor in Toronto, it likely means you want expert financial advice — without hidden commissions or product sales pressure.
In this guide, we’ll break down the difference between fee-based and fee-only models, what to look for in an advisor, and how to find one that aligns with your goals.
Choosing a financial advisor is one of the most important financial decisions you’ll make. The right advisor can help you retire confidently, reduce taxes, and protect your wealth — while the wrong one can cost you time, money, and peace of mind.
That’s why it’s crucial to interview your financial advisor before hiring them. Just like you wouldn’t hire an employee without asking questions, you shouldn’t entrust your life savings to someone without understanding how they work.
By asking the right questions upfront, you can uncover how an advisor gets paid, what motivates their recommendations, and whether they truly act in your best interest.
Top 10 Questions to Ask (with explanations)
Below are ten smart questions every Toronto investor, retiree, or business owner should ask before hiring a financial advisor — along with why each question matters.
1. How Are You Compensated?
Why it matters:
An advisor’s compensation model directly affects their objectivity.
Financial advisors in Toronto may be paid through:
Commissions from financial products they sell
Fee-based models (a mix of fees and commissions)
Fee-only structures (paid only by clients)
A fee-only financial advisor is typically the most transparent because they don’t earn money from selling investments or insurance products.
✅ Tip: Ask for a clear breakdown of how fees are calculated and whether there are any hidden costs.
Learn how fee-only advisors charge in Canada
2. Do You Have a Fiduciary Duty?
Why it matters:
A fiduciary duty means the advisor must act in your best interest — not their own.
In Canada, not all financial advisors are legally required to act as fiduciaries. Some are held only to a “suitability” standard, meaning they can recommend products that are suitable, even if not the best option for you.
✅ Ask directly: “Are you legally bound to act as a fiduciary for all of your clients?”
You want an advisor who answers “Yes” without hesitation.
3. What Services Do You Provide?
Why it matters:
Some advisors focus only on investments, while others provide comprehensive financial planning, including:
Retirement income planning
Tax optimization strategies
Estate and succession planning
Insurance and risk management
Clarify whether the advisor offers a holistic approach or just portfolio management. A well-rounded plan considers all aspects of your financial life, not just your investments.
4. What Is Your Experience and Professional Background?
Why it matters:
Ask how long they’ve been practicing, what types of clients they specialize in, and what credentials they hold.
Look for designations like:
CFP® (Certified Financial Planner) – for holistic financial planning
CPA – for advanced tax planning
CFA - for portfolio management experience
Also, confirm whether they specialize in Toronto retirees, professionals, or incorporated business owners — whichever best matches your situation.
Learn how to find the right planner for you
5. Who Will Actually Manage My Account?
Why it matters:
Sometimes, the advisor you meet initially isn’t the one managing your money. Ask who your day-to-day contact will be and how often you’ll receive updates or meetings.
✅ Ask: “Will I work directly with you, or will my account be handled by a junior associate?”
Good advisors maintain personal relationships and provide regular communication.
6. What Does Your Typical Client Look Like?
Why it matters:
You want an advisor who understands people like you.
For example:
Retirees need help maximizing CPP, OAS, and RRIF withdrawals
Business owners may need corporate tax strategies
Professionals might focus on wealth accumulation and debt reduction
If the advisor’s clients are mostly unlike you, their advice may not fit your needs as well.
7. How Do You Build and Review Financial Plans?
Why it matters:
Financial planning isn’t a one-time event. Ask about their planning process and how often they review and adjust your plan.
A reliable advisor should:
Build a written, personalized plan
Update it annually (or when your life changes)
Monitor progress toward your goals
✅ Ask: “Will I receive a written financial plan, and how often will it be updated?”
8. What’s Your Investment Philosophy?
Why it matters:
Every advisor has a philosophy — some are passive (index investing), others active (stock selection), and some use model portfolios.
Make sure their approach matches your risk tolerance and time horizon.
✅ Ask: “Do you tailor portfolios to individual goals, or do all clients receive a similar strategy?”
You want an advisor who prioritizes diversification, tax efficiency, and low-cost investing.
9. How Will You Coordinate With My Other Professionals?
Why it matters:
If you already work with an accountant or lawyer, your financial advisor should collaborate with them to ensure all areas of your financial life are aligned — especially for tax and estate planning.
✅ Ask: “Will you work directly with my accountant or estate lawyer when needed?”
The best advisors act as your financial quarterback, ensuring everyone’s on the same page.
10. What Happens If Something Happens to You?
Why it matters:
Advisors are human too. You should know what happens to your plan if your advisor retires, becomes ill, or changes firms.
✅ Ask: “Do you have a succession plan or backup advisor who will continue managing my accounts?”
This ensures long-term stability and peace of mind.
What Red Flags Should You Watch For?
Even a polished advisor might not be the right fit. Watch for these warning signs during your interview:
🚩 Unclear or evasive answers about fees or compensation
🚩 Pressure to buy products immediately
🚩 Lack of credentials or verifiable experience
🚩 Promises of guaranteed returns (a major red flag)
🚩 No written financial plan or disclosure documents
Trust your instincts — if something feels off, it probably is.
Choosing the Right Fit for Your Needs
Interviewing a financial advisor in Toronto isn’t about being skeptical — it’s about being informed. Asking the right questions helps you find someone whose values, expertise, and compensation align with your best interests.
The ideal advisor should:
✅ Be transparent about fees
✅ Have a fiduciary duty
✅ Offer comprehensive, personalized advice
✅ Understand your unique financial situation
✅ Communicate clearly and consistently
When you find an advisor who checks all those boxes, you’re not just hiring someone to manage your money — you’re gaining a trusted partner for the rest of your financial life.
Our Approach — Transparent, Fee-Based Planning for Toronto Families
At Ontario Wealth Strategy Experts, we provide comprehensive financial, tax, and retirement planning — all under one transparent fee.
We believe great advice should be:
✅ Transparent
✅ Unbiased
✅ Personalized to your goals
We serve clients across Toronto, Mississauga, Oakville, and the GTA.
How much should I expect to pay in Toronto?
Costs vary widely based on your needs and the advisor's model:
For a $500,000 portfolio: Expect $2,500-$10,000 annually with AUM-based pricing
Initial financial plan: $2,000-$5,000 for comprehensive planning
Hourly consultation: $200-$400 per hour on average in Toronto
Remember that with fee-based advisors, you may also pay embedded commissions in investment products (MERs of 0.10%-1.1% are common).What's a fiduciary and why does it matter?
A fiduciary is legally and ethically obligated to act in your best interest at all times. Fee-only advisors typically operate as fiduciaries.
Fee-based advisors may operate under a "suitability standard" when selling commission-based products, meaning they only need to recommend products that are suitable for you, not necessarily the best option.
Always confirm whether your advisor acts as a fiduciary for all services they provide.What questions should I ask potential advisors?
Essential questions to ask during your consultation:
Are you fee-only or fee-based? How exactly are you compensated?
Are you a fiduciary 100% of the time?
What are your credentials and how long have you been practicing?
What services do you provide and what's your typical client profile?
Can you provide references from current clients?
How often will we meet and how do you communicate?
What's your investment philosophy?
Do you have any conflicts of interest I should know about?What credentials should I look for in Toronto?
Look for advisors with recognized Canadian designations:
CFP (Certified Financial Planner): Comprehensive financial planning expertise
CFA (Chartered Financial Analyst): Investment management focus
CIM (Chartered Investment Manager): Portfolio management specializationVerify their registration with the Ontario Securities Commission (OSC) or CIRO, depending on their licensing.Which type of advisor is better for me?
Consider a fee-only advisor if:
You want complete transparency and no conflicts of interest.
You have complex financial needs requiring unbiased advice.
You prefer to pay directly for advice rather than through embedded product costs.
You value fiduciary duty (they must act in your best interest).
A fee-based advisor might work if:You're comfortable with the commission structure and understand potential conflicts.
You need specific insurance products or investments they offer.
You have a smaller portfolio and hourly fees seem too high.
