When working with a financial advisor, trust is everything. After all, you’re entrusting them with your hard-earned money and future security. So it’s only natural to wonder: Does my financial advisor practice what they preach? More specifically, is it ethical to ask your financial advisor what insurance or investment policies they personally bought and whether they can walk you through their own financial planning?
The short answer? Yes, it’s ethical and in many cases, it’s smart.
Why It’s Okay (and Even Wise) to Ask
Asking your financial advisor to share how they’ve structured their own portfolio isn’t about snooping. It’s about gaining confidence in the strategies being proposed to you. A trustworthy advisor should welcome the opportunity to demonstrate that they apply the same financial principles in their own life.
Transparency builds trust: If your advisor can confidently say, “This is how I protect my family,” or “I personally use this strategy,” that signals alignment between what they believe and what they recommend.
Real-world insight: Seeing how an advisor applies insurance, investments, or retirement strategies in their own life gives you a more practical understanding than just reading product brochures or hypotheticals.
Walk the talk: Advisors who truly believe in what they’re recommending often have “skin in the game.” They wouldn’t push a product they wouldn’t buy themselves.
What to Keep in Mind When Asking
While it’s absolutely ethical to ask, it’s important to approach the conversation with tact and realistic expectations. Here’s how to do it the right way:
Respect privacy: You’re not asking for a printout of their bank account. You’re asking for a general overview or the thought process behind their choices.
Focus on learning: Phrase your question in a way that shows your intent is to understand, not to judge. For example:
“I’m new to this and trying to wrap my head around it. Could you share how you personally approached your coverage or investments? I think it would help me learn.”
Understand context: What works for your advisor may not work for you. An unmarried advisor with no dependents might have very different needs than a client with young children or aging parents.
Red Flags to Watch Out For When Choosing a Financial Advisor
Choosing a financial advisor can be one of the most important decisions for your financial future. The right advisor can help you grow your wealth, protect your family, and guide you through major life transitions. But the wrong one? They can cost you time, money, and peace of mind.
Here are the biggest red flags to watch out for when choosing a financial advisor, especially if you’re just starting out in Singapore.
They Focus More on Selling Than Understanding Your Needs
If your first meeting with an advisor feels more like a product pitch than a meaningful conversation about your goals, that’s a red flag.
A trustworthy financial advisor will first take time to understand your current situation, goals, and risk tolerance before recommending any product. If they lead with, “You need this plan” before even asking about your finances or priorities, be cautious.
They Avoid Talking About Fees or Commissions
Every advisor gets paid; either through fees, commissions, or both. The problem isn’t how they earn, it’s when they avoid telling you how they earn.
If they dodge questions like:
- “How are you paid?”
- “Do you earn a commission from this product?”
- “What are the total costs I’ll be paying?”
…that’s a clear warning sign. Transparency is non-negotiable.
They Promise Unrealistic Returns
Be skeptical of anyone who guarantees high returns with little or no risk. Phrases like “You’ll get 10% every year,” or “This plan never loses money,” are not only misleading but potentially unethical.
Real financial planning involves understanding volatility, trade-offs, and time horizons. A good advisor helps manage expectations — not inflate them.
They Don’t Practice What They Preach
It’s fair to ask your advisor what financial tools they use themselves. If they’re recommending insurance or investment products but don’t hold any themselves, that could mean they don’t believe in the strategies they’re selling.
While personal financial situations vary, advisors should be willing to explain how they apply the same principles in their own lives.
They Push One Product or Provider Exclusively
An advisor who only ever recommends a single type of product (e.g. whole life insurance) or from one company may be more focused on commissions than on what’s best for you.
Look for advisors who offer a variety of options and can explain why one solution fits better than another — not just because it’s “popular” or “limited time.”
They’re Evasive When You Ask for Time to Think
A good advisor respects your need to process and make informed decisions. If someone pressures you to sign on the spot, or uses fear-based tactics like “This offer ends tonight,” it’s a red flag for high-pressure selling, not genuine financial planning.
How to Choose the Right Financial Advisor
Instead of just avoiding red flags, look for green ones:
- They listen more than they talk
- They explain things in plain language
- They tailor advice to your life, not a generic template
- They’re upfront about their compensation and qualifications
- They offer ongoing reviews, not just one-time sales
Protect Yourself, Protect Your Future
Working with a financial advisor should make you feel empowered, not pressured. If you spot even one of these red flags — especially early on — it’s worth stepping back and exploring other options.
You deserve an advisor who’s on your side, understands your goals, and guides you with integrity.
Bottom Line: You Have the Right to Ask
Financial planning is personal, but so is trust. If your advisor genuinely wants the best for you, they’ll understand your desire for reassurance. By asking how they’ve structured their own insurance, retirement, or investment plans, you’re not crossing any ethical line. You’re simply doing your due diligence.
In fact, many top advisors lead with transparency because they know that credibility, not just commissions, builds long-term client relationships.
Disclaimer
Every effort has been made to ensure the accuracy of the information provided, but no liability will be accepted for any loss or inconvenience caused by errors or omissions. The information and opinions presented are offered in good faith and based on sources considered reliable; however, no guarantees are made regarding their accuracy, completeness, or correctness. The author and publisher bear no responsibility for any losses or expenses arising from investment decisions made by the reader.
