Guides · How to choose a financial advisor

How to choose a financial advisor

A practical checklist for comparing advisors, from credentials to fees.

Start with what you need

Decide whether you need help with a specific task, such as retirement planning or tax-aware investing, or ongoing financial planning. A clear goal makes it easier to compare advisors.

Check registration and background

Look up any advisor on FINRA's BrokerCheck or the SEC's Investment Adviser Public Disclosure site. Both show registration, employment history, and disclosures such as complaints or regulatory actions.

Ask how they are paid

• Fee-only: paid directly by you, not by commissions on products.
• Fee-based: charge fees and may also earn commissions.
• Commission-based: paid when you buy a product.

Ask for every fee in writing, including fund costs.

Ask about fiduciary duty

A fiduciary must put your interests first. Ask every advisor whether they act as a fiduciary at all times, and whether that applies to all of their advice.

Questions to ask before you sign

• What services are included, and what do they cost?
• How often will we meet, and who will I speak with?
• How do you handle conflicts of interest?
• Can you explain how you are paid in plain language?