Three Essential Questions Every Freelancer Should Ask Their Financial Advisor

Many professionals in the freelance and arts communities struggle to find an advisor who truly understands their unique financial landscape. We recently presented at the Chamber Music America (CMA) National Conference to discuss this topic along with strategic finance insights for sustainable growth for their Presenter Organization community members.

Here’s an overview of the three critical questions to ask your financial advisor to make sure they are the right fit for your needs.

1. Do They Know Your Business?

Not all financial advisors understand the nuances of the freelance and arts industries. A knowledgeable advisor should be aware of the unique challenges you face, including variable income, inconsistent cash flow, and the need for financial planning that accommodates project-based work.

Signs Your Advisor Lacks Industry Knowledge:

They offer generic investment advice that doesn't account for the seasonality of your work.
They don’t understand or ask about your specific financial concerns.
They recommend traditional financial products without considering alternative strategies tailored for artists and presenters.

What to Look For:

An advisor who clearly understands your profession and revenue cycles.
Someone who provides strategies for income smoothing and tax planning tailored to your unique situation.
A professional who understands the importance of financial flexibility and sustainable growth.

2. What’s Motivating Them?

Understanding your advisor’s incentives is crucial. Advisors who work for large institutions may be motivated by sales quotas or commissions, which could impact the advice they give you.

The Fiduciary Standard: A fiduciary financial advisor is legally required to act in your best interest. At Plectrum Advisers, we adhere to this standard, ensuring that our recommendations are based on what benefits you—not on sales incentives.

How to Identify Motivation:

Ask your advisor how they are compensated.
Be cautious if they receive commissions for selling specific products.
Look for transparency in their recommendations and fee structure.

Choosing an independent, fee-based advisor ensures that your financial well-being—not product sales—remains the top priority.

3. Are They a True Partner?

A great financial advisor should act as your partner, helping you build a strong financial foundation and adjust strategies as your career evolves. This partnership should go beyond occasional meetings to include ongoing guidance and support.

Indicators of a True Financial Partner:

They regularly check in and adapt to changes in your career.
They provide ongoing education and resources to help you make informed financial decisions.
They offer strategies for long-term financial security, such as retirement planning and investment diversification.

Why Boutique Firms Stand Out: Unlike large financial institutions, boutique firms take the time to develop personal relationships with their clients. They understand that your financial goals are as unique as your career and are there to provide tailored advice that supports both your professional and personal aspirations.

Take Control of Your Financial Future

If you’re looking for an advisor who understands your industry, prioritizes your best interests, and acts as a true financial partner, we’d love to connect with you.