5+ Best Financial Advisor Interview Questions & Answers

We’ve compiled the absolute best financial advisor interview questions and answers to help you secure a job in the future. Financial advisors work with young and elderly customers to help plan financial well-being for the future self. Financial advisors work alongside a few client goals: investments, retirement, passive-income, tax heavens and much more.

Financial advisors can be found in almost every city across the US. This is a fairly common position as clients like to have face-to-face interaction with their advisors. While technology companies are attempting to replace financial advisors with what is called a “robot-advisor”, it is still quite early. And older generations are still seeking that personal care that you might expect from walking into a location and dealing with someone more directly.

Because of all this, financial advisors are required to have a general understanding of financial planning and also need to have a good amount of client services experience.

Financial Advisor Interview Questions & Answers

1. What is the S&P?

The S&P is a stock index fund that is owned and operated by the Standard & Poors Company. It is considered the best index in the world as it relates to stocks. For nearly 50 years this index has generally been in a bull market. While we have seen corrections, these are still considered to be normal corrections and not necessarily bear market conditions.

2. What are stocks?

Stocks are certificates of ownership with regards to specific types of shares in a company. There are various types of shares, primarily in the public markets, these shares are restricted shares. Meaning they have no voting power over what the company does and how it does it. But you are rewarded for the advancement of the company and the equity that you put into it.

3. What is the federal reserves federal funds rate?

The federal funds rate controls the United States national interest rate banks are charged when borrowing money. While there are more technical components to what happens inside of this interest rate, it is more important to talk about the fact that this controls some of our stock markets as well as some of our inflation in the economy. These are more important for our financial clients to be aware of.

4. How can you help clients avoid harsh taxation?

You are rewarded for depositing towards your 401K or Roth-IRA every year. Meaning if you have some degree of money left over before the end of the year, you can donate towards this retirement and be rewarded by a break of your taxes for that fiscal year.

5. How would you help a client increase their savings yield?

It is important to pick accounts which have the highest yield. This changes quite frequently, so helping a client understand which bank is providing the highest yield and for how long we feel they are going to keep that yield is very important. Then we can help them start the account and move funds towards that account.

Related Hiring Resources

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author: patrick algrim
About the author

Patrick Algrim is an experienced executive who has spent a number of years in Silicon Valley hiring and coaching some of the world’s most valuable technology teams. Patrick has been a source for Human Resources and career related insights for Forbes, Glassdoor, Entrepreneur, Recruiter.com, SparkHire, and many more.


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