By Vincent Birardi, CFP®, AIF®, Senior Wealth Advisor

Key Takeaways

  • Clarify what you need before you search. Understanding your financial goals, whether investing, retirement planning, or comprehensive advice, helps you identify the right type of advisor from the start.
  • Transparency and fiduciary duty matter. Look for clear explanations of fees, compensation models, and a commitment to act in your best interest at all times.
  • The right fit goes beyond credentials. Strong communication, shared values, and trust are just as important as experience and professional designations.

What to Look for in a Financial Advisor

Choosing a financial advisor is one of the most important decisions you’ll make for your financial future. The right advisor can help you build wealth, plan for retirement, and work toward achieving long-term goals, while the wrong one may cost you time, money, and peace of mind.

It’s well worth investing the time and energy to find the right advisor for you. You should be seeking not only impeccable professional qualifications, but also—particularly if you’re pursuing a longer-term advisory relationship—someone you’ll enjoy working with and who listens to your concerns.

Here’s a brief overview of important considerations that can help guide you in making an informed choice.

1. Understand Your Financial Needs

Before you start searching, clarify for yourself what kind of guidance and expertise you’re seeking in an advisor. Knowing what you need can help you in your initial choice of the candidates you’ll want to interview. This can include:

  • Investment management
  • Retirement planning
  • Tax strategies
  • Estate planning
  • College planning
  • All of the above and more

2. Learn How Financial Advisors are Paid and Ask About Their Fees

Financial advisors are remunerated in different ways. Transparency is key—you should avoid advisors who are vague about what they charge for their services. Compensation models include:

  • Fee-Only Advisors: Charge a flat fee, an hourly rate, or a percentage of assets under management (AUM); no commissions.

One benefit of a flat fee is that fees are predictable. For one-time consultations, hourly rates or flat fees can be ideal. Advisors who use the AUM model typically charge 1-1.5% annually. This percentage can vary among advisors, depending on the services included as well as the amount of assets invested with them.

  • Commission-Based Advisors: Earn a fee from commissions on selling financial products and/or accounts.

Those who work on this basis may earn money from steering you towards financial products their firm has an interest in. It’s wise to be cautious, as their recommendations may be influenced by commissions.

  • Fee-Based Advisors: These advisors get paid via a mix of fees and commissions.

Understanding these models can help you choose someone whose compensation structure aligns with your comfort level and the kinds of services you’re seeking.

3. Check Their Credentials

You should look for advisors with recognized certifications. These certifications can help give you confidence that a given advisor has a high degree of professional knowledge in their discipline, and continues to keep pace with industry standards and innovations:

  • CFP® (Certified Financial Planner): Indicates rigorous training and ethical standards.
  • CFA® (Chartered Financial Analyst):
  • CPA (Certified Public Accountant): Useful for tax planning. Credentials signal professionalism and competence.

4. Verify the Fiduciary Status of the Advisors You’re Interviewing

A fiduciary is legally obligated to act in your best interest. Always ask: “Are you a fiduciary at all times?” This is critical, as non-fiduciary advisors are not held to the same legal standards: They may prioritize their own compensation when advising you on where to invest your assets.

5. Research Their Backgrounds

To eliminate red flags, resources like these can be helpful:

6. Understand Their Investment Philosophy

Ask about their investment approach. For example: Do they favor active management or passive investing—or a balance of both? How do they work with clients’ varying levels of risk tolerance? Their philosophy should align your own attitude towards risk and your long-term objectives.

7. Evaluate Prospective Advisors’ Communication Styles

You’ll be sharing personal financial details, so trust and comfort matter. Ask them questions such as:

  • How often will we meet?
  • Will I have direct access to you?
  • Do you provide written plans and updates?

Hiring someone who can explain complex topics clearly and listen to your concerns is essential to a great advisory relationship, particularly if you’re looking to hire a professional for the long haul.  You should also identify how often you’d expect initially to communicate with your advisor and who should most often be expected to initiate those conversations.

8. Look for Transparency—and State-of-the-Art Technology

Nowadays, most advisors rely on digital tools for portfolio tracking and planning. Ask if they offer secure online portals and real-time updates. You should also ask about other security protections they use to help safeguard their clients’ assets.

9. Trust Your Instincts

Credentials and experience matter, but so does rapport. Are they truly listening to you? If something feels off—whether it’s pressure tactics, a lack of engagement or unclear answers—walk away.

Final Thoughts: Finding a Financial Advisor That Suits You

Choosing the right financial advisor requires some careful due diligence on your part. But it can be a straightforward process and worth the effort. At our firm, CFP® professionals work with clients at every stage of their financial journey. Our LifePhase Investing® process is focused on your goals and current life stage.

Ultimately, you should feel great about the advisor you choose. The right advisor act as a trusted partner, working to guide you toward financial security and feeling more confident about your financial future.

 

Halbert Hargrove Global Advisors, LLC (“HH”) is an SEC registered investment adviser with its principal place of business in Long Beach, California. HH may only transact business in those states in which it is registered, notice filed, or qualifies for an exemption or exclusion from registration or notice filing requirements. Registration does not imply a certain level of skill or training. For information pertaining to the registration status of HH, please contact HH or refer to the Investment Adviser Public Disclosure web site (www.adviserinfo.sec.gov). Additional information about HH, including our registration status, fees, and services can be found at www.halberthargrove.com.

This blog is provided for general information purposes only. No portion of the content serves as the receipt of, or as a substitute for, personalized investment advice from HH or any other investment professional of your choosing. It should not be construed as a solicitation to offer personal securities transactions or provide personalized investment advice. Different types of investments involve varying degrees of risk, and it should not be assumed that future performance of any specific investment or investment strategy, or any non-investment related or planning services, discussion or content, will be profitable, be suitable for your portfolio or individual situation, or prove successful. Neither HH’s investment adviser registration status, nor the achievement of any professional designation, certification, degree, or license, or any amount of prior experience or success, should be construed that a certain level of results or satisfaction will be achieved if HH is engaged, or continues to be engaged, to provide investment advisory services. HH is neither a law firm nor accounting firm, nor does it serve as an attorney, accountant, or insurance agent. No portion of its services, or this content, should be construed as legal or accounting advice. HH does not prepare legal documents or tax returns, nor does it sell insurance products. No portion of the content should be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results if HH is engaged, or continues to be engaged, to provide investment advisory services. All opinions or views reflect the judgment of the author as of the publication date and are subject to change without notice. All information presented herein is considered to be accurate at the time of writing, but no warranty of accuracy is given and no liability in respect of any error or omission is accepted.

Have Questions? We can help. Talk to one of our Advisors today

Contact Us