5 Questions to Ask Before Hiring a Financial Advisor in Huntsville

By Brian Seay, CFA® | Capital Stewards

Deciding to pursue help with your finances can be daunting. A quick search for "financial advisor in Huntsville" yields hundreds of results, making it hard to cut through the noise.

Some of these professionals will advocate for you as a true partner. Others are simply salespeople paid to sell you products.

5 Questions to Ask Before Hiring A Financial Advisor in Huntsville

In a city like Huntsville—full of engineers, government contractors, and smart professionals—it is surprising how many people are still sold high-commission products that don't fit their needs. To help you narrow down the choices, we’ve outlined 5 key areas to consider before you hire (or reconsider) a financial advisor.

Use these questions in your next interview to determine if an advisor is truly working for you.

1. Are you and your firm 100% Fiduciary?

THIS IS THE MOST IMPORTANT CONSIDERATION.

There are two standards in the financial world: the "Suitability Standard" and the "Fiduciary Standard."

• Non-Fiduciaries (Brokers): Many advisors at large firms are really brokers. They are only required to sell you a product that is "suitable" for you—even if it costs you more in fees or commissions than a better alternative. Their "advice" often ends with a sales pitch because that is how they get paid.

• Fiduciaries: Fiduciaries are required by law to act in your best interest at all times.

Choosing a fee-only fiduciary means your advisor is compensated only by the fees you pay them directly—never by kickbacks, commissions, or hidden sales charges. This ensures their advice is objective.

Warning: Some firms blend these models. They act as a fiduciary sometimes, but switch to a salesperson role when selling you insurance or annuities. Don't settle for "part-time" loyalty. Find an advisor who acts as a fiduciary 100% of the time.

2. What are your professional credentials?

In the financial industry, letters matter. You might be surprised to learn that general securities licenses (like a Series 7) often require little more than a high school diploma and a single exam.

When trusting someone with your life savings, look for these two gold-standard designations:

• CFP® (Certified Financial Planner): This designation indicates a well-rounded professional with rigorous education in tax planning, insurance, estate planning, and retirement strategy.

• CFA® (Chartered Financial Analyst): This is widely considered the most rigorous examination for investment professionals. CFAs are experts in portfolio management and investment analysis.

Other "alphabet soup" designations are often weekend courses focused on selling insurance. Always verify an advisor's credentials before signing on.

3. Do you have experience with clients like me?

Huntsville is unique. We have a high density of federal employees, defense contractors, and business owners. The strategic discussions you have during difficult personal and economic times are where advisors provide the most value.

Does your advisor understand the nuances of:

• Federal employee benefits (FERS/CSRS)?

• Stock options for government contractors?

• Small business tax planning?

A seasoned professional has walked clients through a variety of economic cycles and personal situations. That experience pays dividends (literally) when times get tough.

4. Can you help me understand the "Why"?

If an advisor cannot explain their strategy in plain English, run.

Advisors who make well-thought-out recommendations should be able to explain the why behind every move. Understanding the plan builds your confidence, enabling you to be disciplined when the market gets rocky.

Be weary of advisors who simply "implement what the home office recommends."

• How does the advisor know if the corporate view is right for you?

• How will they customize the strategy if they are blindly following a centralized model?

You deserve a custom plan, not a cookie-cutter portfolio.

5. Do you have a history of regulatory or ethical violations?

You would be shocked at the number of "bad apples" who are still allowed to practice, even here in Huntsville.

Before you meet with anyone, go to FINRA’s BrokerCheck. Search for the advisor by name. This free tool will show you their employment history and, critically, any regulatory enforcement actions or client complaints.

Most reputable advisors have a clean record. If you see disclosures, ask detailed questions. If the answers don't satisfy you, look elsewhere.

The Bottom Line

There are many other factors to consider—from digital tools to personality fit—but these five questions are the non-negotiables.

Regardless of who you choose, finding an advisor who can answer these questions to your satisfaction is the first step toward unbiased, high-quality advice. At Capital Stewards, we believe our firm stands up well to these questions, and we encourage you to ask them of us as you consider a financial partner.