It's also important to ask advisers about another kind of oversight: how the advisers conduct due diligence on any money managers they recommend investing with. Do they check out the managers' balance sheets, and how their actions line up with their investment strategies? Do the advisers have a personal relationship with the managers or get kickbacks from referring you?

Note, though, that it isn't uncommon for advisers to get a referral fee, 'as long as they disclose who is getting the money and demonstrate why they are recommending' the particular money manager, says Ken Springer, president of Corporate Resolutions Inc., a corporate-consulting and investigative firm.

5. What's the adviser's track record?

Advisers sometimes say they can't easily describe their track record, since they tailor each portfolio to an individual client's needs. But that excuse doesn't hold up. 'There are many ways to evaluate an adviser's track record,' Mr. Sonnenfeldt says.

For example, you might ask: How many clients beat their benchmarks or are in line with their goals? How have clients similar to me fared during recessions? Can you combine all of your clients into a single portfolio and tell me how the overall portfolio did? Remember to ask about both short-term (one year) and long-term (10 years or more) records, and ask if your adviser is using absolute returns or returns relative to the performance of the market.

Next, use the advisers' record to understand how they make decisions. 'You can ask about performance, but what you're really after is how the adviser processes decisions,' says Mr. Rogers of RayLign Advisory.

He suggests asking advisers to dissect a specific situation that has occurred to them. For instance, you could say, ''Take your worst investment and evaluate how you made the investment, monitored it and the decisions you made along the way to stick with it or get out,'' he says.

'If you feel they are dodging the question or putting a positive spin on everything, it's a red flag,' Mr. Rogers says. 'It could mean they're not going to deal with or handle the tough decisions.'

Finally, be watchful for claims of all-too-consistent returns. No adviser can deliver 10% to 20% returns every year. More reasonable -- and responsible -- is an adviser who says they may get you 10% one year, 2% the next and so on, Mr. Rogers says.

6. Can the adviser put it in writing?

Ask for a formal written outline of the services the adviser will be providing and what fees you will be paying. By setting concrete expectations, you can determine if an adviser is going to, say, 'help you set goals and do budgeting or just make investment decisions,' says Ellen Turf, chief executive of the National Association of Personal Financial Advisors.

Also ask advisers to spell out who else stands to gain from your relationship -- such as affiliated broker-dealers and insurance agencies -- as well as exactly how much the adviser, the adviser's firm and all those other parties will earn from your business. liuxuepaper.com