How To Choose a Financial Advisor

Picking a financial advisor can be tricky. Some are worth every penny. Others are just salespeople with a fancy title. Here’s how to spot the difference:

1) How they get paid
If they earn commissions for selling products, you’re the product. Look for fee-only advisors (you pay them directly—flat fee, hourly, or a % of assets). Commission means they get paid to sell things, which creates conflicts.

2) Fiduciary or not
Ask: “Are you a fiduciary 100% of the time?” A fiduciary must put your interests first—by law. If the answer isn’t a clear yes, move on.

3) Credentials help (but aren’t everything)
CFP = financial planning. CFA = investments/analysis. CPA = taxes. These show training and effort. They don’t replace integrity.

4) Fit matters
Do they work with people like you—DIY investors, retirees, business owners? Do they listen? If they talk over you in the first call, that’s your preview of the relationship.

5) Responsiveness
If they take two weeks to answer a simple question now, it won’t get better when markets drop. You want clear, timely replies and plain-English explanations.

6) What you actually get
Some only “manage money.” Others cover retirement, taxes, estate, insurance. Know exactly what’s included and what costs extra. Make sure it matches your needs.

Bottom line: You want transparent fees, a real fiduciary, solid credentials, a good fit, fast responses, and services that match your situation. Anything less is a time and money drain.