How do I know if my financial advisor is good?

The short answer: A good advisor leaves you better off than a simple, low-cost index fund would have, after every fee. They also keep your money in step with your goals and stay in touch. You can check all of this yourself, one step at a time.

Start with one question: did you come out ahead?

Compare what you have now with what a simple index fund would have grown to, with the same deposits and withdrawals. Most people never see this number.

Add up every fee, in dollars

Advisory fees, fund fees and product charges all count. A fee of 1% sounds small. On $200,000 it's about $2,000 a year.

Check that your money fits your goals

Money you need in two years shouldn't ride the stock market the same way as money you'll need in 20 years. Is your mix right for your age and plans?

Notice how often they reach out

We think a good advisor checks in about once a month and reviews your goals at least once a year. Many promise less, so check your agreement.

Look up their public record

SEC and FINRA records are free. Look for complaints, and for how the advisor is paid.

Write down your questions

Bring a short list to your next meeting. A good advisor is glad to answer.