Top 5 Tips for Finding a Financial Advisor

Choosing a financial advisor is one of the most important financial decisions you’ll make. A good advisor can help you reach your goals, reduce stress, and make informed decisions — but not all advisors are created equal. Here are 5 essential tips to help you choose the right financial advisor for your needs.

1. Ask if they are a Fiduciary

Not all advisors are always held to the same legal and ethical standards. Some are “dually registered,” meaning they can act as both fiduciaries and brokers, depending on the service or product being offered. A fiduciary is required to always put your best interests first — but an advisor may only be acting as a fiduciary part of the time. Ask clearly: Will you always act as a fiduciary in our relationship? Can you describe to me the situations whereby you are not held to the fiduciary standard? It is imperative to know when your advisor is acting as a fiduciary and when they are not.

2. Understand Advisor Payment Structures

Fee structures can vary widely. Advisors typically fall into one of three categories: fee-only, commission-based, or fee-based. Fee-only advisors are paid by asset under management (AUM), hourly or fixed fees. Commission-based advisors are paid by selling investment products to you, which may create incentives that don’t always align with your best interests. Fee-based advisors use a combination of both models – charging AUM fees while also earning commissions from product sales. Knowing how an advisor is compensated helps you identify any potential conflicts of interest. A sure way to determine fees is to plainly ask: what are the all-in fees I am paying in both dollars and percentage terms?

3. Know what the advisor’s fee includes — and what it doesn’t

Advisory firms can offer a wide array of services. Some firms bundle additional services such as financial planning into their AUM fee, while others charge a separate hourly fee. You should have a clear picture of what value you are receiving for the price you are paying.

4. Check for Regulatory or Disciplinary History

A quick search on an individual or their respective firm can tell you a lot. I strongly recommend using the FINRA Broker Check website to see if the advisor or their firm has any complaints, disciplinary actions, or regulatory red flags. It’s a simple step, but one that many people often skip. A little due diligence on who you are working with now can help bring long-term peace of mind. 

5. Look for Credible Credentials:

There are several credentials that advisors may carry beyond their required licensing. A few well-recognized credentials are listed below:

Certified Financial Planner™: The CFP® designation is widely recognized as the gold standard in financial planning. To earn the credential, professionals must complete rigorous coursework, pass a comprehensive exam, meet experience requirements, and adhere to strict ethical and continuing education standards. The CFP® curriculum covers major areas of personal finance, including retirement planning, investment management, tax planning, estate planning, insurance, and education funding.

Charted Financial Consultant: The ChFC® is similar in scope to the CFP®, covering comprehensive financial planning topics like retirement, insurance, estate, and tax planning. It requires extensive coursework and exams, and it's often pursued by advisors who work in holistic planning or insurance-heavy practices. Unlike the CFP®, it doesn't require a board exam but still demonstrates advanced planning knowledge and a commitment to client-centered advice.

Chartered Financial Analyst (CFA): The CFA® designation is one of the most respected credentials in the investment management industry. It focuses heavily on portfolio management, financial analysis, economics, and ethics. Candidates must pass three notoriously rigorous exams and have at least four years of qualified investment experience.

Choosing the right financial advisor is about more than just returns — it’s about trust, transparency, and finding someone aligned with your values and goals. Take your time, ask thoughtful questions, and don’t be afraid to walk away if something doesn’t feel right. The right advisor should empower you, not pressure you.