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A fiduciary is a financial advisor who works in the best interest of the client and only recommends investments that are the best fit. Nonfiduciaries, such as broker-dealers, need only to recommend products that are 'suitable' , even if they're not the lowest-cost or most ideal for you.

Financial advisors can use a variety of fee structures. To keep it simple and avoid conflicts of interest, consider focusing on fee-only advisors. They don’t get commissions for selling products. Fee-only advisors might charge a percentage of the assets they manage for you, a flat fee for services, or an hourly fee.

In addition to paying the advisor, you’ll face other fees , and you'll want to know what they are. Fees can reduce your savings over time. It's important to be vigilant about these costs to avoid losing a significant portion of your net worth.

The relationship with a financial advisor involves knowing how often you’ll meet and whether they're available for phone calls or emails outside of scheduled appointments. The first meeting is typically casual and doesn’t require you to come prepared with tax returns or account balances.

It’s important to know whether you and the advisor have the same investment management philosophy. You have to believe in what they’re doing to stick with it, especially when the market is down and they can convince you to stick to the same plan.

Your asset allocation is how you create a diversified portfolio. It drives most of your returns. A diversified portfolio may include a mix of domestic and international stocks, small-, mid- and large-cap companies, as well as other types of assets.

Ideally, your financial advisor has hired an independent custodian, such as a brokerage firm, to hold your investments rather than act as their own custodian. This provides an important safety check, allowing you to double-check your account information online.

It's important to ask about investment taxes and fees to explore what your estimated net return might be. You want to know what you get to keep after fees and after taxes.