How to Choose the Right Financial Advisor

1. Focus on Fit

The first step in choosing a financial advisor is knowing what you want help with. Your goals may depend on your life stage or situation, such as having a high net worth, receiving an inheritance, getting married or divorced, owning a business, planning for retirement, or just feeling unsure about taxes.

Whatever your reason, it’s crucial to find an advisor whose expertise aligns with your needs. Here’s a quick breakdown:

• Financial planners help with retirement, estate, tax, and education planning, tying your financial picture together.
• Wealth managers often work with high-net-worth clients across multiple areas.
• Investment managers focus on building and managing portfolios aligned with your goals.

For example, if you’ve received a windfall, a planner or investment manager can help you make smart, tax-aware decisions and avoid costly mistakes.

Not sure who’s the right fit for your needs? Start your free match now to connect with a fiduciary professional based on your goals.

2. Understand Their Fees and Minimums

Financial advisors can charge in a few different ways, and it helps to know both how they’re paid and whether you meet their minimums before getting started.

The most common fee structure is a percentage of assets under management (AUM), typically around 1% to 2% per year. For example, under a 1% AUM model, you’d likely pay about $5,000 annually if you have $500,000 managed.

Some advisors offer a flat annual fee or charge by the hour, which can be ideal for one-time planning or specific guidance.

Keep in mind that many advisors—especially wealth and investment managers—require a minimum level of investable assets, such as $250,000, $500,000, or even $1 million or more. Others, particularly those offering planning-only services, may be more flexible.

The key is transparency. A trustworthy advisor will clearly explain both their fee model and whether you meet their minimums to help you understand the value you’re getting in return.

3. Look for Fiduciary, Fee-Only Credentials

Not all financial advisors uphold the same standard, and that difference can have a direct impact on the advice you receive.

Fiduciary advisors are legally required to put your interests first. By contrast, many non-fiduciary advisors follow a less strict suitability standard, meaning they only must recommend products that are “good enough,” not necessarily what’s best for you.

But fiduciary status alone isn’t enough. It also matters how an advisor makes money.

The most transparent and trustworthy advisors use a fee-only model, which means they charge solely for their services and don’t earn commissions from selling financial products. This reduces conflicts of interest and keeps their advice focused on you, not their compensation. Be cautious of advisors who say their services are “free.” These are often paid behind the scenes through commissions.

When evaluating an advisor, look for:

• Fee-only fiduciary structure (no product sales)
• Professional certifications like Certified Financial Planner (CFP), Chartered Financial Analyst (CFA), or Chartered Financial Consultant (ChFC)
• Experience working with your financial goals, whether that’s retirement, taxes, inheritance, or investment planning

4. Ask The Right Questions

Even if an advisor looks good on paper, it’s worth asking a few key questions to ensure they’re the right fit and truly working in your best interest.

Bring these to an initial meeting or call:

• Are you a fiduciary 100% of the time? Make sure they’re always legally obligated to put your interests first.
• How are you compensated? Ask whether they’re fee-only and what their pricing structure looks like (percentage of assets, flat fee, hourly, etc.).
• Do you have any certifications? Look for credentials like CFP, CFA, and ChFC and check that they’re registered with the SEC or a state authority.
• Who do you typically work with? Some advisors focus on high-net-worth individuals, others on retirement planning, families, or business owners.
• What does working together look like? Ask how often you’ll meet, how communication works, and whether they offer virtual or in-person meetings.
• Do you have account minimums? You’ll want to know upfront whether your assets qualify for their services.

The answers to these questions will reveal a lot about the professional and their firm. You’ll learn not just about their experience and approach but about how transparent and relationship-focused they are. Before committing, you should have the confidence they can help you reach your goals.

Find the Right Financial Advisor

Choosing the right advisor is just as important as deciding to hire one. Look for a fiduciary, someone legally obligated to put your interests first. The best advisors are transparent, hold credentials, and offer guidance tailored to your unique needs—not just generic advice.

To make it easier, our free matching tool helps you find a vetted fiduciary financial advisor who aligns with your needs. Just select your state below and complete the form to get matched with a professional in minutes: