What Business Owners Should Know Before Choosing a Financial Advisor in New York

Choosing the right financial advisor is one of the most consequential decisions a business owner or entrepreneur can make — and it's also one of the easiest to get wrong.

After years of working with clients across New York, I've noticed that most people focus on the wrong things when evaluating an advisor. They look at performance numbers, which are largely backward-looking. They focus on how polished the pitch is. And they often don't ask the questions that actually matter.

Here are the questions I think every business owner should ask before hiring a financial advisor:

Are you a fiduciary? A fiduciary is legally required to act in your best interest, not their firm's. This distinction matters enormously. Ask directly, get it in writing, and understand when that fiduciary standard applies.

How are you compensated? Fee-only advisors charge directly for their services. Commission-based advisors earn money when you buy certain products. Neither model is inherently wrong, but you need to understand the incentives at play.

Do you specialize in clients like me? Business owners have fundamentally different financial challenges than employees. If an advisor can't speak specifically to business exit planning, key-person risk, or non-qualified deferred compensation, they may not be the right fit.

What does your planning process actually look like? A good advisor should be able to walk you through exactly what the first six months of working together would look like — what gets reviewed, what gets built, and what decisions you'll be making together.

Who else is on your team? Planning doesn't happen in isolation. The best advisors work in coordination with tax professionals and estate attorneys. Ask how those relationships work.

The right advisor should make you feel like you understand your financial situation better after every meeting — not more confused. If that's not happening, it's worth getting a second opinion.

Richard Siminou, MBA, is the founder of Siminou Wealth Management in Kings Point, New York. This content is for educational purposes only and does not constitute investment advice.