Start by confirming the person is registered. FINRA BrokerCheck shows the registration, licensing, and disciplinary history of brokers and their firms, and the SEC's Investment Adviser Public Disclosure website covers investment advisers. The SEC calls registration the most important question to consider before hiring an investment professional.

Not necessarily. The SEC cautions investors not to assume that initials after someone's name make that person more qualified than another, because these titles are not all the same and do not necessarily mean better service. FINRA notes that some designations involve rigorous standards, while others are relatively easy to earn, and that a designation should never be the sole reason you choose an investment professional.

Common securities licenses include the Series 7, which allows a broader range of securities to be sold than more limited licenses; the Series 63, the state law exam for broker-dealer representatives; and the Series 65, for investment adviser representatives. The Series 66 counts as passing both the Series 63 and Series 65, but registering as an investment adviser representative based on the Series 66 also requires the Series 7. Insurance products require a separate state insurance license. BrokerCheck shows which registrations a person holds.

The SEC suggests considering what services and products you need and which ones the advisor can provide, any limits on what they can offer, how much you will pay and how the advisor gets paid, what conflicts of interest they may have, and whether they have any legal or disciplinary history. You can also use the conversation starters in the firm's relationship summary, known as Form CRS.

Form CRS, or the relationship summary, is a short document that brokers and investment advisers must give retail investors. It explains the types of services the firm offers, the fees and costs, conflicts of interest, the required standard of conduct, whether the firm and its professionals have reportable legal or disciplinary history, and key questions to ask. The Form CRS for LPL Financial and for Independent Advisor Alliance are linked at the bottom of every page of this site.

It depends on the type of account. According to the SEC, brokers typically charge a commission or markup each time you buy or sell an investment, while investment advisers typically charge a fee based on the value of the assets in your account, and other fees and costs may also apply. The SEC encourages you to ask how and how much your advisor is paid, and if a fee is quoted as a percentage, what that means in dollars.

Often, more than one professional is involved. Many portfolios hold mutual funds, which are managed by investment advisers registered with the SEC who choose the fund's holdings. A financial advisor typically recommends investments that fit your goals, then monitors how they perform and whether they still align with your objectives.

No. Investments such as mutual funds are not guaranteed or insured by the FDIC or any other government agency, and you may lose some or all of the money you invest. Past performance does not predict future returns, so be cautious of anyone who promises results.