How to Find a Financial Advisor

High-net-worth and ultra-high-net-worth individuals often engage third-party services to manage their wealth, primarily because they lack the time or expertise to handle it themselves.

Working with a financial advisor can offer substantial advantages. However, finding the right advisor who understands your specific financial needs and goals is not always straightforward. While financial advisors are widely available, not every one of them will move you toward real progress—leaving you questioning, “What’s next?”

This article is designed to help you make a confident choice. We’ll cover how to find a financial advisor that suits your individual needs, what you can expect to pay for their services, and whether hiring a financial advisor is worth it for high-net-worth individuals. If you want a deeper look at how to choose the right advisor, we encourage you to review our detailed guide created for investors with $10 million or more: [Get Matched with a Financial Advisor].

Now, let’s dive into what you should know to make the right decision for your financial future.

5 Steps to Choosing a Financial Advisor

The right financial advisor can be instrumental in helping you achieve your financial aspirations and secure your wealth for the future. A skilled advisor can assist you with everything from planning your retirement to managing investments and developing effective tax strategies. However, given the abundance of personal financial advisors available today, it can be overwhelming to know where to start. To help you, here’s a clear, thoughtful process for identifying and selecting an advisor who fits your personal needs and helps you build a strong, trustworthy partnership.

A key starting point is deciding which area of your financial life needs professional assistance. Financial advisors often specialize in specific areas like retirement planning, investment management, tax strategy, or estate planning. Defining your goals and needs at the outset ensures you find the right advisor whose expertise is tailored to your objectives, saving you time and leading to more effective outcomes.

It’s equally important to understand the types of financial advisors and how they are compensated. Some advisors work under a fee-only model, meaning they are paid solely by clients, which minimizes conflicts of interest. Others receive commissions based on the financial products they sell, which can influence their recommendations. Having a solid understanding of these differences will set the stage for a more informed decision.

Step 1 — Decide Which Area of Your Financial Life Needs Attention

The first step is to assess which aspects of your financial life require guidance. You might need help with retirement planning, investment strategies, tax and estate planning, budgeting, or debt management. Clarifying these needs ensures you find an advisor with the right expertise.

For example, retirement planning is often a major focus for many individuals approaching or thinking about retirement. An advisor can design strategies around Social Security benefits, pension options, and sustainable withdrawal plans to maximize your income throughout retirement. Alternatively, if you are looking to grow and protect your investments, you will need an advisor skilled at portfolio management and market navigation.

Step 2 — Understand the Different Types of Financial Advisors

Knowing the distinctions among financial advisors will significantly increase your chances of finding the right fit.

Fee-only financial advisors are compensated solely through client fees—whether hourly, flat-rate, or based on a percentage of assets managed. Their advice is typically more objective, as they are not influenced by commissions from product sales. Many fee-only advisors also offer comprehensive services covering retirement, investment, tax, and estate planning.

Commission-based financial advisors earn revenue from selling financial products like insurance policies or mutual funds. While they can offer useful services, clients should be mindful of potential conflicts of interest where product recommendations might favor the advisor’s earnings over the client’s best interests.

Registered Investment Advisors (RIAs) are held to a fiduciary standard, legally obligated to act in the client’s best interest. Most RIAs operate under a fee-only model and provide holistic financial planning services that integrate investments, taxes, retirement, and estate planning.

Step 3 — Choose the Type of Financial Advice You Need

Financial advisors differ in the scope of services they offer. Some focus on ongoing financial planning, while others may concentrate on investment management or provide a one-time consultation. Define whether you are looking for comprehensive financial planning or advice in a specific area before selecting an advisor.

Step 4 — Decide How Much You Can Afford to Pay

Financial advisory services come at a cost, and it’s essential to find an advisor whose fee structure aligns with your budget. While high-quality advice often carries a higher price tag, it can be a valuable investment in securing your financial future. Make sure you understand whether the advisor charges a flat fee, hourly rate, asset-based fee, or receives commissions.

Step 5 — Research Financial Advisors Thoroughly

Look into advisors’ qualifications, such as Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA) designations. Verify their regulatory standing by checking with the SEC or FINRA. Reading client reviews, testimonials, and asking for references can provide valuable insight into their reputation and service quality, particularly with clients in similar financial situations to your own.

10 Key Factors in Looking for a Financial Advisor

When searching for a financial advisor, several key factors should guide your decision. It’s important to remember that advisors come in many forms—from robo-advisors to certified financial planners—and choosing wisely can have a significant impact on your financial future. For instance, opting for a robo-advisor means your investments will be handled by an algorithm rather than a human expert, which may not suit everyone’s needs, particularly for high-net-worth individuals.

Let’s explore the critical factors to consider:

1. Track Record and Experience

The track record and experience of a financial advisor speak volumes about their ability to manage large portfolios, particularly those ranging from $5 million to $500 million in liquid assets. You should review how long they have been practicing, the results they have achieved, and how clients rate their services. Seeking recommendations from friends, colleagues, or others in your network can also help you find trusted advisors with proven expertise.

2. Fiduciary vs. Suitability Standard

One major distinction between financial advisors lies in whether they follow a fiduciary or suitability standard. Advisors tied to the suitability standard are obligated to suggest investments that are “suitable” for you but may still favor options that benefit them financially.

Conversely, fiduciary advisors are legally bound to act in your best interests, even if it means recommending products that yield them no personal gain. Choosing a fiduciary advisor minimizes potential conflicts of interest and ensures the guidance you receive is fully aligned with your financial goals.

3. Understanding Costs

Understanding all costs associated with wealth management is essential. Beyond the visible advisor fee or taxes, hidden costs such as transaction fees, bond sale spreads, internal fund expenses, and margin interest can silently erode your wealth. An exceptional advisor will openly discuss these costs and take proactive steps to minimize them, helping you preserve more of your returns.

4. Constant Monitoring and Adjustments

Financial plans should not be set in stone. Life events such as marriage, divorce, market downturns, or economic recessions require a flexible strategy. A capable financial advisor will regularly monitor your portfolio and make necessary adjustments to align with your evolving goals and changing market conditions, rather than leaving you tied to a rigid plan.

5. Commission vs. Fee-Based Payment Models

How an advisor is paid can influence their advice. Advisors working on commissions may have incentives to recommend more frequent trades or specific products, potentially creating conflicts of interest. In contrast, fee-only advisors charge a set rate based on services or assets managed, ensuring that their advice remains objective and focused solely on your best interests.

6. Holistic Approach to Wealth Management

When searching for a financial advisor, consider choosing one who takes a holistic approach to wealth management—not just someone focused on producing short-term portfolio results. A truly comprehensive advisor looks beyond performance to align your financial plan with your broader life goals, such as retirement, legacy planning, and philanthropy. Holistic wealth management helps ensure your investments serve your long-term aspirations.

7. Services

Look for a financial advisor who offers services that fit your individual situation.
If you’re primarily concerned with retirement planning, choose an advisor specializing in that.
If you have significant assets, a family, and complex financial goals, you’ll want an advisor who offers broader services like estate planning, investment management, and risk management.

8. Credentials

Always verify an advisor’s professional credentials. Some designations sound impressive but may lack meaningful requirements. Look for respected designations like CFP (Certified Financial Planner) or CFA (Chartered Financial Analyst) to ensure you’re working with a qualified professional.

9. Frequency of Updates

A great advisor communicates proactively. Choose someone who provides regular portfolio reviews, performance reports, and strategy updates—not someone you hear from only once a year.
Good communication ensures you’re always informed and allows you to adjust plans when needed.

10. Personalized Financial Plan

The best advisors don’t offer cookie-cutter strategies. Instead, they design personalized financial plans based on your specific goals, needs, and lifestyle. Whether you’re planning for retirement, building wealth, or preserving your legacy, your plan should be customized around what matters most to you.

Key Questions to Ask When Choosing a Financial Advisor

When selecting a financial advisor to help you reach your goals, asking the right questions is crucial. Start by inquiring about their qualifications, professional certifications, and educational background. Understanding the areas in which they are certified will give you insight into their expertise and whether it matches your needs.

It’s equally important to understand how they are compensated. Ask whether they follow a fee-only, commission-based, or hybrid model, and be sure to uncover any potential conflicts of interest that could influence their advice.

You should also ask if the advisor operates under a fiduciary standard, meaning they are legally obligated to prioritize your best interests. If they provide financial planning services, clarify what aspects they focus on—whether retirement, tax strategies, investment planning, or a broader combination of services.

Be sure to explore their investment philosophy, including how they assess risk and incorporate it into a comprehensive financial plan. Lastly, discuss any potential conflicts of interest and how they are managed. The answers to these foundational questions will help you evaluate whether the advisor’s approach fits your financial needs and long-term objectives.

How Much Money Do You Need to See a Financial Advisor?

There is no fixed benchmark for how much money you need before consulting a financial advisor. Whether you are just starting your financial journey or managing substantial wealth, working with a financial advisor can provide critical support at every stage. Financial advisors can fill a variety of roles traditionally handled by stockbrokers, accountants, insurance agents, and other specialists—while offering a more comprehensive, coordinated approach.

For younger individuals, financial advisors can help tackle issues like managing student debt, setting up savings plans, or starting investment accounts. For high-net-worth and ultra-high-net-worth individuals, a financial advisor becomes even more essential. Proper planning with the right advisor can help prevent large tax losses, preserve significant assets, and ensure that wealth is protected and positioned to achieve long-term financial goals.

If you’re ready to explore your options and take the next step: