How to choose a financial advisor: 7 steps and the questions to ask
Short answer: To choose a financial advisor, decide what you need help with, then look for an advisor whose services, fee model, and minimums match. Confirm whether they act as a fiduciary, check their record on the SEC’s Investment Adviser Public Disclosure site and FINRA BrokerCheck, read their Form ADV brochure and Form CRS, and interview two or three before you decide.
The steps below work whether you are looking for a planner for retirement, a wealth manager for a growing portfolio, or an independent RIA.
1. What do you actually need help with?
“Financial advisor” covers several different jobs. Name yours first:
- A plan: budgeting, saving, college, insurance, and retirement targets. Look for a financial planner, often hourly or flat fee.
- Ongoing investment management: someone to manage a portfolio. Look for a registered investment adviser (RIA) or wealth manager.
- Retirement income: turning savings into income, Social Security timing, and withdrawals. Look for retirement planning experience.
- Complex wealth: business sale, equity compensation, estate and tax coordination. Look for wealth management or family office services.
Not sure you need one yet? Try the self-check.
2. Is the advisor a fiduciary, and when?
Investment advisers owe their clients a fiduciary duty under federal law. Broker-dealers that make a recommendation must meet the SEC's Regulation Best Interest, which is a different standard. CFP® professionals must act as fiduciaries when they give financial advice, under the CFP Board Code of Ethics and Standards of Conduct. Many professionals are registered as both, so ask: “Are you acting as a fiduciary for all the advice and accounts you handle for me?” Investor.gov explains the differences in Working with an investment professional.
Browse fiduciary financial advisors on Sam’s List.
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3. How will you pay, and how much?
| Fee model | How it works | Ask |
|---|---|---|
| Percentage of assets (AUM) | An annual percentage of the assets managed, usually billed quarterly | Is there a breakpoint schedule? What does the fee include? |
| Flat or retainer | A fixed annual or monthly fee | What services are covered, and does the fee change with assets? |
| Hourly or per plan | Pay for time or a one-time plan | Who implements the plan? |
| Commissions | Paid by product providers when you buy certain products | Which products pay you, and how much? |
“Fee-only” usually means the advisor is paid only by clients, not by commissions. See fee-only financial advisors, and estimate the dollar cost of any fee over time with the financial advisor fee calculator.
4. Which credentials matter?
Credentials show training and ethics commitments, not results. Common ones include CFP® (Certified Financial Planner), CFA (Chartered Financial Analyst), and CPA/PFS (a CPA with a personal financial planning credential). FINRA's professional designations database explains what each requires. Ask what a credential means for the work they would do for you.
5. What does their record show?
Search the advisor and their firm on Investment Adviser Public Disclosure and FINRA BrokerCheck. Both are free. Look at registrations, employment history, and any disclosures such as customer complaints, regulatory actions, or terminations. If a disclosure appears, ask the advisor about it directly.
6. What do Form ADV and Form CRS say?
Registered investment advisers file Form ADV. Part 2A, the brochure, describes services, fees, conflicts of interest, and disciplinary history in plain English. Form CRS, the client relationship summary, is a short document investment advisers and broker-dealers give retail investors that covers services, fees, conflicts, and standard of conduct. Read both before your first meeting.
7. What should you ask in the interview?
- What services would you provide me, and what would you not do?
- How are you paid, and what would I pay in total dollars per year?
- Are you a fiduciary for all of my accounts at all times?
- Who are your typical clients, and what is your minimum?
- Who holds my money? (Assets are usually held by a separate custodian.)
- How often will we meet, and who is my day-to-day contact?
- What happens to my account if you retire or leave the firm?
Interview two or three advisors so you can compare answers side by side.
How do you choose a financial advisor for retirement?
Use the same steps, and add: ask how they plan retirement income, Social Security timing, required minimum distributions, and health care costs before Medicare. Look for experience with clients at your stage; Sam’s List lets you filter for advisors who work with high-net-worth individuals, pre-retirees, and retirees.
Interactive: your shortlist checklist
Tick each item you have confirmed for an advisor you are considering.
Frequently asked questions
How do I choose a financial advisor?
Define what you need, confirm whether the advisor acts as a fiduciary, understand how they are paid, check credentials, look up their record on IAPD and FINRA BrokerCheck, read their Form ADV and Form CRS, and interview two or three before you decide.
What should I look for in a financial advisor?
Services that match your needs, a clear fiduciary commitment, a fee you understand in dollars, relevant credentials, a clean regulatory record, and experience with clients like you.
How do I find a financial advisor I can trust?
Check their record on the SEC's Investment Adviser Public Disclosure site and FINRA BrokerCheck, read their Form ADV brochure for conflicts of interest, and ask them to confirm their fiduciary status in writing.
What questions should I ask a financial advisor?
Ask what services they provide, how they are paid and what you would pay per year, whether they are a fiduciary for all accounts, who their typical clients are, who holds your assets, and how often you will meet.
What is the difference between a fee-only and a fee-based advisor?
Fee-only advisors are paid only by their clients. Fee-based advisors charge client fees and may also earn commissions on products they sell.
How many financial advisors should I interview?
Interviewing two or three lets you compare services, fees, and fit side by side.
Tell us what you need and we will match you with firms that fit. It is free, and you decide who to talk to.
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Some professionals on Sam’s List pay for visibility or leads. Inclusion and order do not rank professionals. This page is general education, not investment, tax, or legal advice, and it does not recommend any adviser, product, or strategy. Check any professional on Investor.gov and FINRA BrokerCheck before you hire. Firm names are never shown on Get a quote matches.