The 7 Questions You Should Ask Your Financial Advisor
by AJ Ayers, CFP®
Thinking about hiring a financial advisor? I’m so sorry, I feel for you. This industry is full of bad apples, people trying to sell you stuff, and lots of people who don’t align with your values and are just not that great at what they do. But Brooklyn Fi was built to be an antidote to all that.
Our core values center around delivering comprehensive advice and a fantastic client experience. We don’t sell you insurance you don’t need, and we lead our investment strategy with time-tested principles and an eye on your upcoming tax bill.
You may have reached this conclusion on your own, but at Brooklyn Fi, we aren’t your typical financial advisor. We do so much more than most in the space. We manage your money, maintain your financial plan, are available for meetings ANYTIME you want, and we can even do your taxes. We have deep technical knowledge in the wild world of equity compensation.
We built a detailed checklist if you have stock options, RSUs or any other type of equity.
How do you KNOW that we’re going to be a good fit for you? Well, you may want to start with a little research. Might I suggest reading some other smart people’s critiques of financial advice? Try Jason Zweig, a wicked-smart columnist for the Wall Street Journal. He writes about real people with real money questions, not just biotech in China. He’s rightfully critical of the whole financial advice industry, and I like the way he frames things for consumers. A few years ago, he wrote this piece called “The 19 Questions to Ask Your Financial Adviser.” I think these are all great questions to ask. However, I’m going to cherry-pick the ones I think are the MOST important for a person interviewing a potential financial advisor.
At the end of the day, this is a relationship of trust. The Brooklyn Fi philosophy, which is very much my own personal philosophy (and that of my co-founder, Shane), is that we are here to give high-quality advice to help our clients make some of the most important financial decisions of their lives, and the way we get paid is transparent.
Many of you are looking for a financial advisor for the first time and have no idea what to expect.
I’m a firm believer in setting expectations. That’s why we try to give you as much information as possible before you even get on the phone with us.
You can watch a long-ish video that basically explains everything: https://youtu.be/8pF3lHB0mz8
And read about our value here: https://www.brooklynfi.com/ourvalue
But onto the questions.
The BKFi Take on Jason Zweig’s 19 7 Questions You Should Ask Your Financial Advisor
1. Are you always a fiduciary, and will you state that in writing?
Yes.
BKFi operates as a fiduciary at all times. This means we are legally and ethically bound to act in your best interest, and we’re happy to confirm that in writing. We are fee-only and independent. There are no hidden incentives or commissions behind our advice.
2. Does anybody else ever pay you to advise me and, if so, do you earn more to recommend certain products or services?
No.
We do not receive commissions or kickbacks from any third parties. Our only source of compensation is the transparent fee you pay us. We don’t sell products, and we have no financial incentive to recommend any particular strategy other than what we believe is best for you.
3. Will you itemize all your fees and expenses in writing?
Yes.
We provide a clear breakdown of all planning and investment management fees. For clients on our “Start-Up” plan there is an annual fee based on needs and complexity, plus a tiered AUM-based fee. All fees are outlined in writing, and we review them with you regularly.
4. Do you focus solely on investment management, or do you also advise on taxes, estates and retirement, budgeting and debt management, and insurance?
We take a comprehensive approach.
BKFi integrates investment management, tax planning and preparation, retirement strategy, estate planning, equity compensation planning, and more. Your dedicated planner coordinates with in-house specialists, including CPAs and tax experts, to address every aspect of your financial life.
5. Do you earn fees for referring clients to specialists like estate attorneys or insurance agents?
No.
We do not earn referral fees or commissions for connecting you with estate attorneys, insurance professionals, or any other external specialists. When we refer you, it's based solely on your needs and the quality of the resource, not because we're compensated. In fact, I spend a good deal of time trying to meet interesting and forward-thinking professionals. If I’m not trying out their services myself, I’m doing due diligence on what they offer and how they get paid before I recommend anyone to a client.
6. What is your investment philosophy?
Tax-efficient, evidence-based, and globally diversified.
BKFi’s investment philosophy is built on capturing market returns through low-cost, diversified portfolios optimized for tax efficiency. We use strategies like asset location, tax-loss harvesting, and regular rebalancing to enhance after-tax returns. We do not try to time markets or pick individual stocks, instead, we help you stay disciplined and focused on long-term goals.
We also publish a whitepaper that goes in-depth on our investment strategy. Link to white paper.
7. Who manages your money?
John Owens, our managing partner, is my advisor and manages my money.
I believe in BKFi’s approach and invest my own money in the same globally diversified, tax-efficient portfolios we build for our clients. This alignment ensures our interests are fully in sync with yours.
Should we go on a first date?
If you think BKFi is your perfect match, then don’t wait to reach out. Not so sure? Then take these questions to an advisor to see if they are the better option for you. We aren’t everyone’s cup of tea, but when it’s a good fit, it’s REALLY good. Having an advisor you trust to outsource financial worry and help you reach your financial goals and build generational wealth is a game-changer.
Well, I hope that was helpful. If that’s the case, we need to chat because I have a hunch we can add value to your financial life.