How to Find a Financial Advisor
Finding a personal financial advisor starts with understanding what you need, what different types of financial professionals do and what credentials should be on your list before you hire.
Key Takeaways
Getting financial advice starts with knowing when and whether you should seek it.
Finding a professional who understands you and whom you can trust can sound difficult.
Get tips for where to start, how to choose and what to expect from a financial advisor.
Relying on a financial professional might be an easy way to simplify your finances. The dilemma? Finding the right financial advisor for you. You want someone who understands your needs—and whom you can trust. Here are suggestions for figuring out when to seek advice, what kind of advice you may need, how to find a financial advisor and what you might expect once you select one. A good place to start is understanding your own perceptions about getting advice.
Have a Specific Question About Advice? Jump to your question.
- What Does a Financial Advisor Do?
- Do I Need a Financial Advisor?
- When Should I Seek Advice?
- What Types of Financial Services Do I Need?
- What Can I Expect from a Financial Advisor?
- What Questions Do I Ask When Choosing a Financial Advisor?
- What Questions Should I Ask Myself Before Choosing an Advisor?
What Does a Financial Advisor Do?
The simple answer is that financial advisors help you manage money. Often, there’s much more to it. From creating a financial plan and choosing investments to offering tax strategies, retirement planning, and even helping you decide the best time to claim your Social Security benefits, a financial advisor can serve many roles in your financial life.
Do I Need a Financial Advisor?
Of course, we believe financial advice can be helpful, especially when clients receive a clear financial plan based on their goals. Many people think they could benefit from assistance, and more are saying they plan to get professional advice. Still, the latest data shows that 41% use an advisor.1
Why is there a disconnect? Perhaps deeper questions are holding some back. Do any of these sentiments sound familiar to you?
“I want help, but I’m not ready to discuss my finances.”
Money is personal, so it makes sense to hesitate. However, consider viewing an advisor like you would a physician. The advisor should be just as professional and not make you feel “less than” about your finances or previous financial decisions. The vibe should be, “I’m here to help.”
“Can I really trust an advisor?”
This question may be, "Am I comfortable giving up control of my investment decisions?". Some clients like to be hands-on, while others are happy to turn over the reins in a managed account where investment professionals make portfolio decisions. The good news is that you get to choose.
“It sounds too complicated.”
Nobody wants complicated when it comes to their finances, and an advisor should help make it easier. Together, you can tackle one financial goal or question at a time, then move on to the next. It doesn’t have to be all or nothing unless you want it to be.
“Financial advice is too expensive.”
Advisor fees can be misunderstood because different firms have different structures. We believe fees should be transparent, and you should know upfront what you will pay. That’s one reason our Private Client Group advisory service offers a flat fee that covers both advice and the investment fees. We’ll go over different kinds of fees later.
Another part of the “do I need a financial advisor” question may center around when you need advice.
When Should I Seek Advice?
One of the most critical times to seek advice is when life changes. A marriage, the birth of a child, or a divorce are all family changes that may warrant working with a financial advisor. The same can be true with career changes, such as a first job, a job change, starting a business or retirement.
Health changes or the passing of a family member may also be a time to consider seeking financial help. Or if you could suddenly become a caregiver for an aging parent or another family member. You may also want financial advice on receiving an inheritance, tax issues or estate planning.
No life change? You may still want to consider working with an advisor if you don’t have time to manage your finances or if your assets have grown to a point where you’re no longer comfortable or willing to manage them yourself.
At what age should you seek advice?
Though many people wait until closer to retirement to speak with a professional advisor, there’s a growing sentiment that starting younger may be more beneficial for your finances.
What Types of Financial Services Do I Need?
Different financial advisors have different areas of expertise. Areas they may be able to help include:
Investing and retirement planning: A financial advisor can help you more fully utilize your retirement accounts, such as 401(k) and IRA contributions, and determine the appropriate investment products and funds based on your risk tolerance.
Budgeting and debt management: An advisor can help you build a monthly budget to pay off high-interest debt in a timely fashion, live within your means today, and potentially find extra to invest for the future. A primary goal for budgeting before and after retirement is to help make your money last as long as needed.
Portfolio tax questions: Some advisors provide detailed strategies for planning for and mitigating the impact of taxes on your investments, whether it be managing your tax-advantaged retirement accounts, such as your 401(k) or decreasing the effects of capital gains taxes.
College investment strategies: Financial planners can help you develop a college investment strategy and choose a tax-advantaged account, such as a 529 college savings plan.
Estate planning: Some financial planners can help plan your financial legacy to help protect your loved ones.
What Can I Expect from a Financial Advisor?
While styles may vary, the most important result should be a sound financial plan. At a minimum, advisors should help you:
Establish your goals. Short-term goals are those you want to accomplish in the next year, such as building an emergency fund or purchasing a new car. Mid-term goals are for the next three to five years—like purchasing a home. Long-term goals are further out, such as retirement.
Understand what kind of investor you are. That includes understanding when you'll need the money for each goal and how you feel about risk. Your advisor should respect your comfort with risk and help build your portfolio accordingly.
Create, implement and monitor your plan. It’s reasonable to expect an advisor to:
Create a comprehensive financial plan for your future based on your discussions.
Implement your plan and begin your investments.
Monitor your investments and recommend changes, if necessary.
Adapt your plan as your circumstances change (e.g., marriage, divorce, retirement).
Check on your progress. Your advisor should schedule regular reviews and be available when significant changes occur in the investment environment.
What Questions Do I Ask When Choosing a Financial Advisor?
Finding the right advisor takes homework. Friends and family can make suggestions, but ultimately, you need a professional who has qualities that make you feel comfortable sharing about your life and money. You also need to know the details about working with them. Here’s what to ask a financial advisor when you’re shopping around:
Are You a Fiduciary Financial Advisor?
It might not feel like the first question to ask a prospective financial advisor, but it should be one of your non-negotiables.
Under the “suitability standard,” non-fiduciary advisors are allowed to make recommendations that reasonably fit your goals—and don’t generate excessive fees. So, a non-fiduciary advisor might push you to invest in a fund that also pays them a high commission. They are not required to put your interest over their own.
Fiduciary advisors are obligated to act in your best interest. Non-fiduciary advisors operate under a suitability standard, but don’t have the same obligation. All financial consultants with our Private Client Group advisory services are fiduciaries.
However, a fiduciary advisor must operate on a higher level. These advisors are legally bound to act only in your best interest regarding your finances.3 So you can have more confidence that a fiduciary advisor is truly working with you.
How Are You Paid?
Many advisors charge an annual fee based on the amount of money they manage for you, called an assets-under-management fee.
If your potential financial advisor doesn’t charge an assets-under-management fee, ask them to describe their fee structure. Here are some potential ways they could charge:
Fee only: The advisor collects a fixed fee only—usually an annual charge or an hourly rate
Commission only: In this case, they collect a fee based solely on the investments they sell you
Fee-based: The advisor collects both a fixed fee and commissions for investments sold
Our Private Client Group advisory services offer a unique fee structure. Clients pay one flat fee for both advice and investment management fees of the underlying funds. At 0.90%, it's lower than what many pay for investments alone.
Find out more: Private Client Group
Before you choose your advisor, tally a rough estimate of the costs under that professional’s fee structure. Consider how often you’ll be in touch, the frequency of your trades and the types of investments you plan to own.
Additional Advisor Fees You May See
Your advisor’s rates aren’t the only expenses you’ll pay. You may be charged for trades your advisor makes on your behalf. And you’ll need to factor in expense ratios for any funds in your portfolio.
Check-in with your advisor to get a sense of what these costs might be for you. If your advisor buys and sells frequently, your trading fees might be higher than if they hold assets for longer periods. And actively managed investments, including mutual funds and exchange-traded funds (ETFs), will generally come with higher management costs than index funds.
Expense ratios are determined by dividing the costs to operate a fund by the total value of the investment’s assets.
What Services Do You Offer?
You’ll want to ensure the advisor you choose has the skills to help you achieve the goals you identify. But they might offer additional services to make managing your money even easier.
For instance, ask whether your advisor offers a selection of pre-designed portfolios or sits with you to create a custom one—or both. Your professional might provide automatic rebalancing or dividend reinvestment. And maybe they can handle the day-to-day investment decisions for you if you’re looking to authorize that.
How Do You Communicate with Your Clients?
Choose an advisor with a level of contact that fits your personal needs. That might mean monthly or quarterly meetings. Maybe you want regular check-ins or simply email updates. Ask your advisor how they communicate and see if they can accommodate your preferences.
Additionally, find out how they respond to one-off questions or concerns. Do you need to set up an appointment? Can you reach them quickly by phone or email? How fast can you expect a response?
Besides these questions, you can research your advisor candidates. The BrokerCheck website, sponsored by the Financial Industry Regulatory Authority (FINRA), provides the career history of an advisor, including where they’ve worked and for how long, as well as any regulatory issues or client complaints. You can also do a simple Google search as well.
What Questions Should I Ask Myself Before Choosing an Advisor?
The questions you ask yourself before hiring a financial professional may be just as important as those you ask the prospective advisor. Before deciding to hire a particular advisor, give yourself a gut check by considering these questions:
Does this person get me? You want your advisor to understand your needs, goals, dreams and fears.
Do I feel comfortable with them? Your advisor works for you, so you shouldn’t feel nervous or uneasy about stating your needs, declining recommendations and sharing personal information.
Do they respect my comfort level with risk? Steer clear of advisors who use pressure tactics or hard sell you on specific investments. It’s your money, after all.
Can I understand them easily? Find an advisor who communicates clearly and in plain language—not confusing jargon.
What do I want to get out of this relationship? Why did you decide to hire an advisor in the first place? Recall those reasons and make sure your chosen professional checks all the boxes.
Advisor Chosen, Now Prep for Your First Meeting
Your work isn’t over once you set your first meeting with a financial advisor. To make sure you’re prepared, be ready to discuss goals, your current and expected family situation and what you need from your portfolio.
Deciding to work with a financial partner is significant, but finding the right one is even more important. If you have an advisor, we suggest you talk about any questions this article may have sparked.
Authors
Investor Center Manager
Let Us Help You Get Direction and Make Sense of Your Financial World
Americans Still Turn to People for Financial Advice, Gallup, May 2025.
Northwestern Mutual Planning and Progress Study 2025, May 2025.
What is a Fiduciary Advisor? U.S. News, August 2025.
Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. Past performance is no guarantee of future results.
Private Client Group advisory services are provided by American Century Investments Private Client Group, Inc., a registered investment advisor. This service is generally for clients with a minimum $50,000 investment. Call us to determine the level of service that is appropriate for you. The advisory service provides discretionary investment management for a fee. All investing involves risk.
Annual Investment Advisory Fee is 0.90% for balances $5 million and under and 0.70% for balances over $5 million. American Century Investments Private Client Group charges a single annual fee based on the value of your assets under management with us. The single fee includes our Private Client Solutions, along with any underlying trading costs, commissions, and custody services related to our recommendations. American Century Investments' financial consultants do not receive a portion, or a range of the advisory fee paid by clients. Client-oriented trades outside of our recommendations and other activities like wire transfer fees, may result in additional cost.
IRS Circular 230 Disclosure: American Century Companies, Inc. and its affiliates do not provide tax advice. Accordingly, any discussion of U.S. tax matters contained herein (including any attachments) is not intended or written to be used, and cannot be used, in connection with the promotion, marketing or recommendation by anyone unaffiliated with American Century Companies, Inc. of any of the matters addressed herein or for the purpose of avoiding U.S. tax-related penalties.
This information is for educational purposes only and is not intended as tax advice. Please consult your tax advisor for more detailed information or for advice regarding your individual situation.
The opinions expressed are those of American Century Investments (or the portfolio manager) and are no guarantee of the future performance of any American Century Investments portfolio. This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.