Questions to Ask a Financial Advisor in Maryland (2026 Guide)

You’ve spent decades building your wealth. The advisor you choose in retirement can help shape everything that comes after.

One wrong call on a Maryland pension exclusion. A poorly timed Social Security claim. An annuity you did not need. Any one of these can do real damage to your long-term plan.

The problem? There are more than 300,000 financial professionals in the United States, and there is no single rule for who gets to call themselves a financial advisor. A career insurance salesperson and a fiduciary CFP® professional can use the same title. That makes choosing the right one harder than it should be.

This guide walks you through the questions every Maryland resident should ask before hiring a financial advisor. It includes red flags to watch for. It also covers Maryland-specific details that out-of-state advisors might miss.

Why Choosing a Financial Advisor in Maryland Is Different

Maryland is not an average state for retirees, and a generic financial advisor often misses what makes Maryland unique.

Here is what an advisor working with Maryland retirees needs to understand:

• Maryland pension exclusion. Maryland lets retirees age 65 and older subtract up to $40,600 of qualifying employer pension income from state taxable income in 2026 (per Maryland Comptroller guidance). The exclusion is reduced dollar-for-dollar by Social Security benefits. It also does not apply to traditional IRA withdrawals.
• No state tax on Social Security. Maryland fully exempts Social Security benefits from state income tax, which is more retiree-friendly than many residents realize.
• Both an estate tax and an inheritance tax. Maryland is one of the few states with both. That can change how you pass assets to children, grandchildren, and other heirs.
• State plus county income tax. Maryland adds a county or local income tax on top of state tax, which means your total state-level rate depends on where in Maryland you live.
• Senior tax credit. Maryland residents age 65 and older may qualify for a senior tax credit of up to $1,750, subject to income limits.

An advisor who knows these rules can structure withdrawals, Roth conversions, and estate planning very differently than one who does not. For a deeper look at the 2025-2026 Maryland tax changes that affect retirees, see our companion guide on the Maryland tax increase and what retirees need to know. Tax rules are subject to change, so coordinate the specifics with your qualified tax professional.

What to Look For in a Maryland Financial Advisor

Before you start interviewing candidates, know what separates a thoughtful advisor from an average one. Here are the qualities that matter:

• Fiduciary status. A fiduciary is required to put your interest first. Confirm in writing.
• Relevant credentials. The CFP® (CERTIFIED FINANCIAL PLANNER®) designation is a strong baseline for comprehensive planning. The ChFC®, CPA/PFS, and CFA are other respected designations. Learn more about working with a CFP® professional in Maryland.
• Maryland and retirement specialization. An advisor who works regularly with Maryland pre-retirees and retirees will catch issues a generalist will miss.
• Transparent fee structure. You should be able to understand exactly what you pay and how the advisor is compensated.
• A documented planning process. A repeatable process for gathering your information, analyzing it, and updating recommendations over time.
• A clean regulatory record. Check FINRA BrokerCheck and the SEC’s Investment Adviser Public Disclosure (IAPD) website for any complaints or disciplinary history.
• Clear, plain-language communication. An advisor who can explain a complex idea simply usually understands it well.

12 Questions to Ask Before You Hire a Financial Advisor

Your first meeting with a financial advisor is really a job interview, except you are the one doing the hiring. The questions below are the ones that reveal the most about whether an advisor is the right fit.

01.Are You a Fiduciary, and Will You Confirm That in Writing?

A fiduciary financial advisor is required by law to put your interest first.

Some advisors are fiduciaries in every part of their practice. Others act as a fiduciary when giving planning advice but switch to a different standard when selling specific products. There are honest advisors in both groups, but you should know which one you are working with.

Ask the question directly, and ask the advisor to put their fiduciary commitment in writing. The answer should be specific, not vague.

02.What Is Your Specialty and Who Are Your Typical Clients?

You would not see a personal injury attorney for a divorce. The same logic applies to financial advisors.

Ask the advisor what kind of clients they serve. Are they generalists, or do they focus on a specific group?

Common specializations include:

• Pre-retirees and retirees
• Federal government employees and retirees (common in the Maryland and D.C. area)
• Business owners and executives
• Widows, widowers, and recent divorcees
• High-income professionals such as physicians or attorneys

It is also fair to ask how many clients the advisor serves. A heavy client load can mean less time and attention for you.

03.How Are You Compensated, and What Is the Total Cost?

Understanding how an advisor is paid is one of the most important things you can learn before hiring them.

Common fee structures include:

• Assets under management (AUM). A percentage of the portfolio the advisor manages for you, typically billed quarterly.
• Flat fees. A set annual or project-based fee for planning services.
• Hourly fees. A per-hour rate for specific advice.
• Commissions. Compensation paid by a product company when a specific product is sold.

Many advisors use more than one of these. Ask for the total cost, not just the advisory fee. Fund expense ratios and trading costs are paid by you, even when they are not paid to the advisor.

Two index funds that track the same benchmark can have very different expense ratios. A thoughtful advisor will favor lower-cost options when results are otherwise comparable. Review the advisor’s Form ADV Part 2 and Form CRS for a written breakdown of fees and services.

04.What Services Do You Provide?

Some advisors only manage investments. Others build and maintain a full financial plan. Both can be valid, but you should know which one you are getting.

Comprehensive financial planning typically covers:

• Retirement income planning and withdrawal strategy
• Tax-aware planning, including Roth conversions and asset location
• Social Security and pension claiming decisions
• Investment management
• Estate and legacy planning, coordinated with your attorney
• Insurance review, including long-term care
• Cash flow and budgeting in retirement

If you are within ten years of retirement, an investment-only advisor will leave gaps that affect your taxes, your Medicare premiums, and how much you can safely spend.

05.How Will You Help Me Manage Taxes in Retirement, Especially in Maryland?

Taxes are one of the largest costs in retirement, and Maryland has its own rules that can affect your total tax bill.

Ask how the advisor approaches:

• The Maryland pension exclusion for retirees age 65 and older
• Maryland’s full exemption of Social Security from state tax
• County and local income taxes that apply on top of state tax
• Maryland’s senior tax credit eligibility
• Coordinating withdrawals across taxable, tax-deferred, and Roth accounts
• Roth conversions during lower-income years between retirement and Required Minimum Distributions
• Qualified Charitable Distributions (QCDs) from IRAs after age 70 1/2

Tax planning is most valuable when it is done year-round, not just at tax time. Look for an advisor who runs tax projections and coordinates with your CPA.

The firm does not provide tax advice. Tax planning should be coordinated with your qualified tax professional.

06.Where Will My Money Be Held?

This is one of the most important questions on this list.

Your money should be held at a reputable third-party custodian, not by the advisor or the firm directly. Well-known custodians include Fidelity, Charles Schwab, and Pershing.

A third-party custodian limits what the advisor can do. They can trade on your behalf and bill agreed-upon fees. They cannot access your money for any other purpose.

You also get direct online access to your accounts and independent statements every month. A custody arrangement like this is one of the strongest investor protections you have.

07.What Is Your Investment Philosophy?

Investments are only one part of a plan, but they are a big one. Ask the advisor to walk you through how they invest.

Useful follow-up questions:

• Do you use exchange-traded funds (ETFs), mutual funds, individual stocks, or a mix?
• How do you handle alternatives, gold, or private investments?
• How do you incorporate workplace retirement accounts like a 401(k)?
• How many positions are in a typical portfolio?
• Do you have a process for tax-loss harvesting?
• Will you create a written Investment Policy Statement for my account?

Ask for a sample portfolio. Look at the expense ratios. A clear, evidence-based philosophy beats stock-picking hunches in almost every long-term study.

08.How Often Will We Meet, and How Will We Communicate?

A good advisor meets with you at least two to four times per year for formal reviews, and is reachable in between when life happens.

Get clear answers to these:

• How often are scheduled meetings, and what do they cover?
• What channels does the firm use between meetings: phone, email, video, secure portal?
• Who will I actually be working with day to day?
• What is the typical response time to a non-urgent question?
• Will you reach out when tax law changes or markets shift, or do I need to ask?

Communication style is one of the biggest reasons people stay with an advisor, and one of the biggest reasons they leave.

09.What Happens to My Plan if Something Happens to You?

If your advisor retires, becomes disabled, or leaves the firm, what happens to your accounts and your plan?

This is one of the most overlooked questions, and it matters especially for retirees. If you are hiring an advisor at 65, the relationship may need to last 25 to 30 years.

Ask:

• Is there a written succession plan?
• Who is the backup advisor, and do they already know my situation?
• What happens to my investments during a transition?
• Is the firm dependent on one person, or is there a team behind the practice?

Your money should stay at the third-party custodian regardless of what happens to your advisor. That is another reason custody (Question 6) matters.

10.Can You Show Me a Sample Financial Plan?

Before committing, ask to see a sample of the planning work product. A sample plan reveals more than any meeting can.

Look for:

• Coverage of retirement projections, tax strategies, investment allocation, insurance, estate planning, and Social Security
• Plain language with clear visuals, not 100 pages of jargon
• Specific next steps, not just analysis
• A defined schedule for when the plan is updated
• Stress-testing for scenarios like a 30% market drop, higher-than-expected inflation, or a long-term care event

If the advisor is proud of their work, they will share a sample. If they will not, move on.

11.What Is Your Experience With Estate and Legacy Planning in Maryland?

Maryland is one of the few states that has both an estate tax and an inheritance tax. The state estate tax exemption is meaningfully lower than the federal exemption, and the inheritance tax applies to certain non-lineal heirs.

Ask whether the advisor can coordinate:

• Wills and trust strategies with your estate attorney
• Charitable giving plans, including donor-advised funds and qualified charitable distributions
• Gifting strategies to children or grandchildren
• Beneficiary designations on retirement and investment accounts
• Coordination between Maryland estate and inheritance tax planning

A well-coordinated estate plan helps your legacy pass according to your wishes with fewer surprises along the way.

Estate and legal planning should be coordinated with a qualified attorney. The firm does not provide legal advice.

12.Are There Any Conflicts of Interest I Should Know About?

Every advisor and every firm has some conflicts of interest. The honest ones tell you what they are and how they manage them.

Conflicts to ask about:

• Revenue sharing from mutual fund companies or custodians
• Referral fees for recommending insurance products, attorneys, or mortgage brokers
• Proprietary investment products the firm is encouraged to use
• Compensation differences across products the advisor can recommend

Fiduciary advisors are required to disclose conflicts of interest in Form ADV Part 2. Not every client reads a 30-page regulatory document, so just ask.

Red Flags to Watch For

Across every question above, here are the warning signs most worth watching:

• They will not confirm their fiduciary commitment in writing
• They get defensive when you ask hard questions
• They start pitching annuities or insurance before they understand your goals
• They imply or claim guaranteed investment returns
• They pressure you to make a decision quickly
• They cannot give a clear, written breakdown of fees
• They have no succession plan or backup advisor
• They hold custody of your assets themselves rather than using a third-party custodian
• They have unresolved complaints on BrokerCheck or the IAPD website
• They do not ask about your life, your family, or your goals before recommending anything

Maryland-Specific Questions Your Advisor Should Be Able to Answer

If you live in Maryland and you are interviewing an out-of-state firm, ask these to see how much they actually know:

• How does the Maryland pension exclusion interact with my Social Security benefits?
• How does Maryland’s senior tax credit work, and am I likely to qualify?
• What is my total Maryland tax rate when state and county income taxes are combined?
• How does Maryland’s estate tax exemption differ from the federal one, and does my situation cross either threshold?
• Does Maryland’s inheritance tax apply to my intended heirs?
• If I roll my 401(k) into a traditional IRA, do I lose pension exclusion eligibility?
• How would you sequence withdrawals from my taxable, tax-deferred, and Roth accounts to minimize Maryland tax?

An advisor who can answer these clearly is paying attention to where you live. An advisor who waves them off probably is not.