Do you really know how your financial advisor makes his or her money?
Even if the answer is yes, you may want to double check that those services — and what you're paying for them — fit your needs.
There are many ways to pay for advice, typically through fees or commissions. And financial advisors may earn their compensation in different ways — whether you pay them hourly, or an annual retainer or as a percentage of assets under management.
While the Securities and Exchange Commission wrestles with how advisors and broker-dealers should be required to operate in the best interests of their clients, consumers are largely on their own.
"You need to be very clear on what services you're buying," whether it be financial planning advice, money management or tax preparation, said Ted Jenkin, CEO of Oxygen Financial.
Then, you need to make sure you understand how you're paying for those services.
"The overarching thing for every consumer is to get complete and full transparency, but it can be hard sometimes because you don't always know what questions to ask," Jenkin said.
Here are some points to keep in mind for the next time you talk to your advisor.