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Pathstone Find an Advisor Assets Under Management $100,444,137,501 Number of Advisors 342 Time in Business Founded in 2010 Fee Structure Fee-only Office Location 10 Sterling Boulevard Suite 402 Englewood, NJ 07631 Website https://www.pathstone.com/ At the top of the list, Pathstone Family is a fee-only firm with billions in assets under management. Individual clients are mostly high-net-worth individuals. The firm also works with pooled investment vehicles, charitable organizations and other corporations. Services offered by the firm include discretionary investment advising, financial planning services, tax compliance, financial consulting and tax return preparation. The minimum portfolio size is $2 million. Fees for investment management are based on a percentage of assets under management, though some qualified clients may enter into an agreement for performance-based fees. Pathstone may use the following strategies in client portfolios: long-term purchases, short-term purchases, trading, short sales, margin transactions, option writing, structured products and, and derivatives.Generally, Modern Portfolio Theory informs the process of determining asset allocation and manager selection for advisors. Each client has a determined return objective and risk tolerance that drives investment decisions.

Advisors Capital Management Find an Advisor Assets Under Management $9,470,063,452 Number of Advisors 41 Time in Business Founded in 1998 Fee Structure Fee-based Office Location 10 Wilsey Square Suite 200 Ridgewood, NJ 07450 Website https://advisorscapital.com/ Advisors Capital Management, LLC works with more non-high-net-worth individuals than high-net-worth individuals. Additionally, Advisors Capital Management works with pension and profit-sharing plans, businesses and charitable organizations. The account minimum at this Ridgewood-based firm varies depending on the type of account. Advisors Capital Management provides most of the services that typical financial advisor firms do. Its services include budget and cash flow planning, investment management, retirement planning, estate planning and insurance analysis. Advisors Capital Management takes into account a number of factors when deciding which industries are worth investing in. These factors include interest rate outlooks, demographics, business cycles and more. Once it has considered these elements, the firm selects specific companies within the viable industries that present strong return possibilities or are currently undervalued. The final choices your advisor makes throughout this process are not only based on the aforementioned research but also on how well the investments align with your personal risk tolerance and time horizon. However, this firm heavily emphasizes long-term investments.

Modera Wealth Management Find an Advisor Assets Under Management $15,510,482,152 Number of Advisors 113 Time in Business Founded in 1983 Fee Structure Fee-only Office Location 56 Jefferson Avenue Westwood, NJ 07675 Website https://www.moderawealth.com/ Individuals comprise the largest percentage of Modera Wealth Management’s client base, although that’s not the only group the firm serves. The firm has built relationships with pension and profit-sharing plans, estates, trusts, businesses, investment limited partnerships and charitable organizations. Modera Wealth Management does not require new clients to have a minimum level of investable assets, but it does have a minimum quarterly fees. This firm’s services can be split into a few overarching categories, like wealth management, portfolio management, investment consulting and monitoring, retirement planning and financial planning and consulting. Modera offers business planning, insurance review, estate planning, tax mitigation, cash-flow planning and education funding as well. Modern Portfolio Theory has become popular with financial advisor firms in recent years, but this firm chooses to focus on just three main tenets it: First, the markets work (the market will usually set fair prices). Second, diversification is key (use international securities in different markets to fill out portfolios). Finally, there’s a relationship between risk and return (if you want a boost in return, make sure the risk only increases proportionately). To put these ideas into practice as fully as possible, Modera Wealth Management remains open to a plethora of investment opportunities, including exchange-traded funds, stocks, bonds, real estate investment trusts, commodities and more.

Bleakley Financial Group Find an Advisor Assets Under Management $10,066,772,972 Number of Advisors 84 Time in Business Founded in 1994 Fee Structure Fee-based Office Location 100 Passaic Avenue Suite 300 Fairfield, NJ 07004 Website https://www.bleakley.com/ Bleakley Financial Group offers financial planning, retirement consulting and wealth management services to individuals, business entities, trusts, estates and charitable organizations. Most client assets are managed on a discretionary basis, while a smaller portion are managed under advisement. The firm offers wrap and non-wrap accounts. The firm uses what it calls the “Banyan Assessment” to create a financial plan tailored to each client’s short-term and long-term goals, income and risk tolerance and uses it to develop a personalized wealth management strategy. Bleakley uses economic, fundamental and technical analysis to identify appropriate investment opportunities for clients. Depending on the client, the firm may buy stocks, fixed-income securities, funds, master limited partnerships and alternative investments.

Circle Wealth Management Find an Advisor Assets Under Management $12,479,780,365 Number of Advisors 9 Time in Business Founded in 2006 Fee Structure Fee-only Office Location 47 Maple Street Suite 201 Summit, NJ 07901 Website https://www.circlewm.com/ Circle Wealth is a fee-only financial advisor firm, meaning it only receives income from client fees. This avoids the conflicts of interest found at a fee-based firm, which can receive commissions for insurance or securities transactions. There is a $30 million account minimum. Circle Wealth Management’s client base consists entirely of high-net-worth individuals and charities. Circle Wealth provides highly customized financial planning and investment management services to its clients, on both a discretionary and non-discretionary basis. These services include estate planning, tax planning, insurance planning, retirement planning and more. Circle Wealth Management looks to tailor its advisory services to the financial objectives, risk tolerance and time horizon of each client. Part of the process of understanding the client involves an evaluation of their existing investments. Based on these findings, the firm may recommend that those investments should be held or sold. Based on the entirety of this information, the firm will put together an investment policy statement (IPS). The firm uses both quantitative and qualitative analysis when crafting client portfolios. The firm draws from a wide range of databases to inform their decisions. Based on this research, the firm may recommend investments like individual equities, fixed-income securities, options, mutual funds, private equity funds, funds of funds, hedge funds, exchange-traded funds (ETFs) and structured notes.

Simon Quick Advisors Find an Advisor Assets Under Management $6,716,999,364 Number of Advisors 55 Time in Business Founded in 2004 Fee Structure Fee-only Office Location 360 Mount Kemble Avenue Morristown, NJ 07960 Website https://simonquickadvisors.co… Coming in next on our list is Simon Quick Advisors, LLC. The firm is fee-only, which means it does not receive any sales or transaction commissions that could introduce conflicts of interest. Simon Quick provides several different financial advisory services across the investing and financial planning verticals. The firm and its advisors help clients with wealth management, investment planning, retirement planning, tax planning, estate planning and more. Simon Quick primarily provides services to individual clients, with most of them having a high net worth. The firm also commonly works with pooled investment vehicles, retirement plans, charities, insurance companies, other investment advisors and municipal government entities. Rather than impose a minimum account size, the firm charges a $10,000 minimum annual fee, which could be cost-prohibitive for smaller account sizes. In order to properly help clients manage their investments, Simon Quick creates unique investment plans that fit the objectives of each client. Through extensive interviews, the firm determines precise investment goals and the asset management styles that would pair well with them. The firm then allocates client funds to a number of securities, such as stocks, bonds, mutual funds and exchange-traded funds (ETFs). As your portfolio ages, the firm will rebalance your investments. Simon Quick primarily utilizes fundamental analysis when crafting client portfolios to determine a security’s intrinsic value. In terms of investment strategies, the firm enagages in long- and short-term purchases, short sales and options trading. Each portfolio is given periodic performance updates to ensure proper growth targets are being met.

Beacon Trust Find an Advisor Assets Under Management $4,352,787,884 Number of Advisors 38 Time in Business Founded in 2015 Fee Structure Fee-only Office Location 163 Madison Avenue Morristown, NJ 07960 Website https://www.beacontrust.com/ Beacon is a fee-only advisory firm. A majority of its individual clients have a high net worth. The firm also maintains advisory relationships with high-net-worth individuals, charitable organizations, government entities, retirement plans and investment companies. Beacon Trust provides financial planning, asset management, consulting and tax preparation services. The firm guides its clients through all of the steps it takes to achieve their financial goals. It performs asset management services on a primarily discretionary basis and offers wrap fee programs as well. Beacon Trust’s portfolio programs look to invest client’s assets in a wide variety of securities. The firm looks to preserve wealth and drive growth while maximizing liquidity, tax efficiency and adaptability. Risk mitigation tends to be at the center of each portfolio strategy. The firm’s strategies include small-cap, mid-cap, large-cap, international, bond and high-yield securities. It also uses mutual funds and exchange-traded funds (ETFs) in client portfolios. The firm rebalances and evaluates client portfolios on a consistent basis.

Palisade Capital Management Find an Advisor Assets Under Management $4,225,941,279 Number of Advisors 13 Time in Business Founded in 1995 Fee Structure Fee-only Office Location 1 Bridge Plaza North Suite 1095 Fort Lee, NJ 07024 Website https://palisadecapital.com/ Founded in 1995, Palisade Capital Management LLC primarily offers investment management through separately managed accounts. The minimum to open an account depends on the investment strategy and ranges from $1 million to $50 million. The firm also serves as sub-advisor to several mutual funds and as advisor to a collective investment trust, private equity funds and private hedge funds. Palisade Capital has been offering comprehensive, bottom-up, fundamental investing for 25 years. Its strategies include small-cap core equity, focused all-cap equity, convertible securities, short-duration convertible bonds, hedged convertibles, private equity and hedged equity. Private wealth management individuals with separately managed accounts typically choose one of the following investment goals: growth, preservation of principal/income or balanced/conservative growth. Their assets are typically invested in securities of individual issuers, mutual funds, exchange-traded funds and/or investments in funds managed by Palisade.

Journey Strategic Wealth Find an Advisor Assets Under Management $3,764,311,936 Number of Advisors 20 Time in Business Founded in 2020 Fee Structure Fee-based Office Location 104 Summit Avenue Summit, NJ 07901 Website https://journeysw.com/ Journey Strategic Wealth offers wealth management services to individuals, high net worth individuals, families, trusts and estates. Journey provides Clients with wealth management services, which generally include a broad range of comprehensive financial planning and consulting services in connection with discretionary management of investment portfolios. The actual services include investment management, retirement accounts and financial planning. Wealth management fees are paid quarterly, in advance of each calendar quarter pursuant to the terms of the wealth management agreement. Wealth management fees are based on the market value of assets under management at the end of the prior quarter. Wealth management fees are generally tiered and blended and range from 0.30% to 1.75% annually based on the complexity of the services performed, the level of assets to be managed, and/or the overall relationship with the Advisor. Journey employs fundamental and technical analysis methods in developing investment strategies for its Clients. Research and analysis from Journey are derived from numerous sources, including financial media companies, third-party research materials, Internet sources, and review of company activities, including annual reports, prospectuses, press releases and research prepared by others. Journey generally employs a long-term investment strategy for its clients, as consistent with their financial goals. Journey will typically hold all or a portion of a security for more than a year but may hold for shorter periods for the purpose of rebalancing a portfolio or meeting the cash needs of clients.

If you’ve ever wished for a robot to clean your house or walk your dog, you’ll likely understand the appeal of a robo-advisor. These services don’t do windows or pet-sit, but what they do offer is a relatively hands-off way to invest.

Robo-advisor definition

A robo-advisor — also known as an automated investing service — is a service that uses computer algorithms and software to build and manage your investment portfolio. Services can include automatic rebalancing and tax optimization. Robo-advisors require little to no human interaction, but many robo-advisors have human advisors available for questions.

Traditional portfolio management services often require high balances, but robo-advisors typically have low or no minimum requirement. Because of that and their low costs, robo-advisors let you get started investing quickly — in many cases, within a matter of minutes. Also, if you want to grow your wealth but are unsure how to start, robo-advisors can be one way for beginners to start investing.

» Ready to get started? Check out NerdWallet’s picks for the year’s best robo-advisors

How much does a robo-advisor cost?

Most robo-advisors charge an annual management fee of 0.25% to 0.50%. This is usually much cheaper than in-person human financial advisors.

As with many other financial advisors, robo-advisor fees are a percentage of your assets under the robo-advisor’s care. For example, for an account balance of $10,000, you might pay as little as $25 a year. The fee is typically deducted from your account, prorated and charged monthly or quarterly.

You won’t usually pay transaction fees with a robo-advisor. In a standard brokerage account, you might pay a commission to buy or sell investments, both during a rebalancing of your portfolio and when you deposit or withdraw money. Robo-advisors frequently waive these charges.

You will probably pay fees (called expense ratios) on the exchange-traded funds (ETFs) and index funds the robo-advisor offers. These are in addition to the robo-advisor’s management fee.

Some robo-advisors require an initial investment of a few thousand dollars, but some have no account minimum and others have account minimums of a few hundred dollars.

How does a robo-advisor work?

When you sign up with a robo-advisor, your first interaction will almost always be a questionnaire designed to learn your risk tolerance, goals and investing preferences.

Robo-advisors then build a portfolio out of low-cost exchange-traded funds (ETFs) and index funds, which are baskets of investments that aim to mirror the performance of a stock market index, such as the S&P 500. Robo-advisors generally offer between five and 10 portfolio choices, ranging from conservative to aggressive. The service’s algorithm will recommend a portfolio based on your answers to the questionnaire, but you should be able to veto that recommendation if you’d prefer a different option.

The business strategy for many advisors is the same: automate investment management so it can be done by a computer at a lower cost. At most robo-advisors, you can expect:

Regular rebalancing of that portfolio, either automatically or at set intervals — for example, quarterly. Most advisors do this via computer algorithm, so your portfolio sticks to its original allocation.

Financial planning tools, such as retirement calculators.

Tax strategies, such as tax-loss harvesting, which involves selling losing investments at a loss to offset capital gains taxes on sales of profitable investments.

Most robo-advisors manage individual retirement accounts (IRAs) and taxable accounts. Some also manage trusts, and a select few will help manage your 401(k). It comes down to whether you want automated portfolio management.

» Not sure which type of advisor is right for you? Learn how to choose a financial advisor

Pros and cons of a robo-advisor

Whether a robo-advisor is right for you depends on what you need from a financial advisor and how involved you prefer to be in the day-to-day management of your money.

Pros Usually less expensive than an in-person human advisor. Low or no account minimums. Hands-off, set-it-and-forget-it approach can save you time. Can get started quickly. Cons No human day-to-day involvement. Investment options may be relatively limited. May not be able to manage all types of accounts.

If you don’t want to manage your own portfolio but you want or need more comprehensive financial planning than a robo can provide, it may suit you better to find a human financial advisor. One middle-ground option to consider: online financial planning services.

What are online planning services?

Online planning services operate as online financial advisors, and they’re sort of a robo-advisor/traditional advisor hybrid. You’ll receive unlimited access to a team of financial planners (or, in many cases, your own dedicated financial advisor), but you’ll meet virtually via phone or video rather than in person. This model means you get human oversight and interaction at a higher cost than a robo but at a lower cost than a traditional financial advisor.

You can expect the cost and minimum investment requirements of online financial advisors to increase with the level of human involvement, certification (such as access to a certified financial planner) and personalization:

Facet Wealth charges $2,100 to $6,600 per year, based on the complexity of your planning needs. You get custom advice and a complete financial plan, and the service includes investment management.

Charles Schwab Intelligent Portfolios Premium offers access to a team of advisors who will prepare a custom financial plan for you and manage your portfolio. Schwab requires a $25,000 account balance and charges a flat fee of $30 a month plus a one-time planning charge of $300.

Vanguard Personal Advisor offers access to a team of financial advisors for a $50,000 account minimum and an annual fee of 0.30% to 0.31%. You’ll get a customized financial plan, portfolio management and access to financial planning tools.

» View a full list of the best financial advisors

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Paying a 1% annual fee to a financial advisor for managing a $2 million investment portfolio is pretty typical, but that doesn’t necessarily mean it’s the right amount for every investor. Even small-sounding financial advisor fees can seriously erode long-term returns when compounded over years or decades. A 1% annual fee on a $2 million portfolio earning 7% could cost you more than $375,000 over 10 years. You may be able to get better performance by choosing a less costly advisor or otherwise finding a lower fee rate. The key is to identify specific services you are receiving in exchange for those fees and carefully evaluate whether your portfolio’s performance and advisor relationship justify the costs from a mathematical and personal perspective.

Do you have questions about retirement planning, tax planning or investing? Speak with a financial advisor today.

Understanding Financial Advisor Fees

According to a 2021 study by Advisory HQ, the average financial advisor fee is 1.02% for $1 million in assets under management (AUM) as an annual fee. Advisors and firms all have their own fee schedules, though, so these can vary. This type of fee usually covers investment management, portfolio monitoring and performance reporting services, hence why they’re usually based on asset tiers. For things like financial planning and other services, hourly and fixed fees are more common, though percentage-based fees can still apply.

Advisors with more years of experience, advanced expertise or special certifications like certified financial planner (CFP) can sometimes charge higher fees. The exact fee percentage can also typically differ depending on the overall account size and specific mix of services provided.

For example, an advisor may offer a tiered fee schedule where the percentage rate decreases as asset amounts rise. In other words, on the first $1 million in a portfolio, the annual fee may be 1.2%, while assets above $2 million are charged at a rate of just 0.8%. This structure allows firms to serve clients across the wealth spectrum, while still being incentivized to help those clients continue accumulating assets.

Some advisors also customize service offerings and related fees to match a client’s needs. An advisor may charge a lower percentage fee, but exclude financial planning and instead focus narrowly on investment management. Others may set up a comprehensive service bundle that includes financial planning, tax preparation, estate planning review, insurance analysis and other, more specialized offerings. In those cases, the fee paid may be higher but aims to encompass full-scope financial guidance rather than just investment portfolio oversight.

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.

Some financial advisors might charge a hefty fee, treat you to lunch, and ask for referrals while still managing your investments responsibly. Others might dazzle you with charm, but your portfolio doesn’t grow as expected. So, how do you choose a financial advisor?

We put together a seven-step guide to help you navigate the process—from figuring out your financial needs and the type of advisor who fits them, to selecting the right fee structure for your assets and deciding whether you prefer someone located in your state.

Step 1: Realize You Need Financial Help

Financial advisors assist clients with varying levels of financial knowledge, ranging from beginners to seasoned veterans.

Regardless of why you need help, there will be a financial advisor who specializes in your situation and can help guide you through it, and often for less money than you think.

Financial advisors offer a range of different types of advice. Here’s how they can help you.

Investment advice. Financial advisors research different investment options and make sure your investment portfolio stays within your desired level of risk while meeting your financial goals.

Personal finance. Financial advisors can help you craft budgets, spending plans and set up short and long-term financial goals. Part of their role is to keep you on track, with regular check-ins as well as offering you objective advice.

Tax strategy and planning. Tax planning involves strategizing ways to decrease the amount of taxes you may pay. Remember that not all financial planners are tax experts and that tax planning differs from tax preparation.

Retirement planning. Financial advisors can help you build funds for the ultimate long-term goal: retirement. Then, once you’re retired or nearing retirement, they can help ensure you’re able to keep your money safe.

Estate planning. For those who wish to leave a legacy, financial advisors can assist in figuring out a strategy to transfer your wealth to the next generation, whether that’s family, friends or charitable causes.

People are usually prompted to find an advisor due to a pressing issue. Maybe it’s a new job, an inheritance, or a big family change. But take a little extra time to think about where else you could use support with your finances. – Jessica Goedtel, a certified financial planner and owner of Pavilion Financial Planning.

Step 2: What to look for in a Financial Advisor

Ask any prospective financial advisor if they would act as your fiduciary. In most situations, you want to enlist a financial advisor who is bound by the fiduciary standard.

What is a fiduciary?

A fiduciary is someone entrusted to manage assets or wealth who is bound to serve in your best interests at all times. Fiduciary advisors must disclose to you any conflicts they may have when managing your account and how they are compensated.

What is a fiduciary duty?

Fiduciary duty is the legal obligation of a fiduciary to act in the best interest of their client. This includes the duty of loyalty and the duty of care. When an advisor has a fiduciary duty, they must put your financial interests first, above their potential compensation.

Some, but not all, financial advisors are bound by the fiduciary standard, meaning that they are ethically required to work in your financial best interest.

Not all advisors have to abide by this code. For example, broker advisors are held to a “suitability” standard, meaning they must only suggest products that are suitable to a client’s needs. But that doesn’t necessarily mean the suggestions are the best available options.

The rule “requires that a firm or associated person have a reasonable basis to believe a recommended transaction or investment strategy involving a security or securities is suitable for the customer. This is based on the information obtained through reasonable diligence of the firm or associated person to ascertain the customer’s investment profile,” according to the Financial Industry Regulatory Authority, an organization that regulates brokerage and exchange markets.

What credentials should a financial advisor have?

First, you’ll need to decide what type of firm you want to manage your money. Do you prefer a well-known name like Fidelity or Schwab, brokerage firms with advisory services, or an independent registered investment advisory (RIA) firm? Either way, it’s important to choose a setup that aligns with your goals and comfort level.

Just note: Investment advisors managing $110 million or more in client assets are regulated by the Securities and Exchange Commission, whereas those handling up to $100 million fall under the authority of state securities regulators.

The SEC maintains a comprehensive online database, including a directory of investment advisors by the individual’s name.

Registered investment advisor (RIA)

Registered investment advisors can be either individuals or firms that provide financial services. As fiduciaries, they are legally obligated to act in their clients’ best interests.

Should I look for an online or local financial advisor?

Sometimes, finding a financial advisor who’s both local and online can be one in the same. What really matters is how you plan to meet with them and whether local knowledge is important to your situation.

Start by asking yourself:

How will you meet with your advisor? Will your conversations happen by phone, Zoom or in person? Even if an advisor is technically “local,” that doesn’t guarantee you’ll meet face-to-face. Make sure their meeting style matches your preferences.

Do they need local or state-specific expertise? For example, if you lease out property as a side business, you might need someone familiar with your state’s landlord-tenant laws or who can refer local CPAs. In that case, having a financial advisor with local connections could be extremely helpful.

It’s also important to know what kind of firm or advisor you are looking for. Your options might include:

A large brokerage firm with a wealth management arm

A registered investment advisory (RIA) firm

An independent certified financial planner (CFP) who emphasizes long-term planning

Related: Find A Financial Advisor in 3 minutes.

Step 3: Decide How Much You Can Pay Your Financial Advisor

Make sure you understand the fee your advisor charges.

Commission-only financial advisors may seem free on paper, but they may receive a portion of what you invest or purchase as a payment.

Fee-based financial advisors may charge fees based on the total amount of assets they manage for you, or they may charge by the hour, by the plan, through a retainer agreement, or via a subscription model, to name a few examples.

Average financial advisor fee rates are listed in the table below. This data comes from Envestnet’s MoneyGuide 2024 State of Financial Planning and Fees Study.

Financial Advisor Fee Structures

Financial Advisor Fee Type Average Cost Percentage of assets under management (AUM) 1.05% Hourly fee $268 Flat fee $2,554 Retainer $4,484 See More See Less

Robo-advisors generally charge less than their human counterparts. It’s not unheard of to pay an AUM fee of 0.24% with an automated investor program. Some robo-advisors come with low barriers to entry. Take Fidelity Go, for example. It charges no advisory fee to start. But once your balance hits $25,000 or more, the fee switches to 0.35% of assets under management (AUM), and you gain access to 1-on-1 financial coaching. If your portfolio is $500,000 or higher, you may qualify for a dedicated advisor.

As a general rule of thumb, if you’re looking for a dedicated traditional “human” advisor, expect to meet a higher portfolio minimum—often starting around $500,000. This level of service typically falls under the wealth advisory divisions of financial institutions or brokerages. For example, you’ll need at least $500,000 to get started with Schwab Wealth Advisory; fees start at 0.80% AUM but decrease at higher asset levels.

Traditional asset-based compensation models steer financial advisors to focus on preretirees and retirees. However, emerging hourly and flat-fee structures are enabling advisors to also support midcareer individuals. Working with financial advisors early allows you to benefit from the compounding effect of good investments and financial habits for decades to come. – Lei Deng, CFP, chartered financial analyst and founder of Savor Financial.

Here’s a general overview of what you can expect from the following financial advisors:

Traditional financial advisors (AUM–based)

Advice-only advisors

Robo-advisors

Traditional financial advisors

Fee-Based Financial Advisors

Fee-based financial advisors earn money through a combination of fees and commissions. They generally will charge a percentage for the assets under management (AUM), but some opt for an hourly charge.

Best for:

Reduced conflict of interest

Comprehensive financial planning

Reasons to consider alternatives:

Cheaper investment management

Don’t meet the asset minimum

Advice-Only Financial Advisors

Advice-only financial advisors provide financial planning services without managing your investments or selling products. These advisors are more apt to charge flat fees. You might find this type of advisor suited for niche needs, such as retirement planning, or as a second option on your investment portfolio.

Best for:

Looking to build an investment plan

Wanting a second opinion on an investment portfolio

Reasons to consider alternatives:

Ongoing investment monitoring and management

Hands-off approach to your financial planning and investments

Robo-Advisors

Robo-advisors offer low-cost, automated investment advice. Most specialize in helping people invest for mid- to long-term goals through preconstructed, diversified portfolios of funds.

While most robos specialize in basic portfolios, some now offer fancier features like tax-loss harvesting and access to human advisors.

Best for:

Low-cost, automated investment management

Simple financial situation

Reasons to consider alternatives:

Making complex investment decisions

Looking For A Financial Advisor? Get In Touch With A Pre-screened Financial Advisor In 3 Minutes Find A Financial Advisor

Step 4: Find a Financial Advisor

There are a few good ways to find a financial advisor. Ask friends, family, and peers for recommendations when trying to find a financial advisor near you. Keep in mind that unless they are financial experts themselves, their recommendations may be more about an advisor’s charisma than their credentials and ethics.

Alternatively, you can look for financial advisors online. Many professional financial planning associations provide databases of financial advisors:

Step 5: Check a Financial Advisor’s Background

When evaluating financial advisors, consider their credentials and research their backgrounds and fee structures.

You can view disciplinary actions and complaints filed against financial advisors using FINRA’s BrokerCheck. Remember, just because someone is part of a financial planning association, that doesn’t mean they’re a fiduciary financial advisor.

Check if the financial advisor is a fiduciary.

Use the BrokerCheck to verify their investment advisor (IA) status.

Check if they earn any commissions that could create conflicts of interest.

How to check a financial advisor’s background online

It’s a good idea to look up a potential financial advisor using FINRA’s BrokerCheck service. On the site, you can check for any disciplinary actions, customer complaints or regulatory issues.

You can also verify their employment history, licenses and registrations. The SEC’s Investment Adviser Public Disclosure database is another valuable resource for researching advisor credentials and any potential red flags.

Step 6: Hiring a Financial Advisor

Once you’ve picked out a financial advisor, it’s time to hire them.

Each financial advisor and firm operates differently. But your experience hiring a financial advisor will most likely include these steps:

Contact the advisor or firm you’d like to work with. Many firms have a calendar link on their website to schedule an initial consultation call.

Gather some basic information before your consultation call. If you have a partner, sit down with them to determine your short-term and long-term financial goals.

During the consultation, your advisor will ask you some basic questions. A great advisor will focus on more than just numbers.

After (and sometimes before), your financial advisor will send you a form about your financial picture to complete.

Once you decide to hire a financial advisor or advisory firm, you’ll probably receive legal documents to sign. These usually outline the scope of their practice, fee schedule, and rights and responsibilities.

From there, you’ll have follow-up conversations with your financial advisor.

Looking For A Financial Advisor? Get In Touch With A Pre-screened Financial Advisor In 3 Minutes Find A Financial Advisor

10 Questions To Ask a Financial Advisor Before Hiring

When meeting a financial advisor for the first time, it’s important to obtain the answers to these questions and ensure you’re satisfied with their responses:

Are you a fiduciary, committed to acting in my best interest? How do you make money? What is your approach to financial planning? What financial planning services do you offer? What kind of clients do you typically work with? Do you have any account minimums? Do you have any conflicts of interest in managing money? What information do you need me to provide to develop my financial plan? How many times and how often will we meet? Will you collaborate with my other advisors, such as certified public accountants (CPAs) or attorneys?

Related: Find a financial advisor in 3 minutes

Looking For A Financial Advisor? Get In Touch With A Pre-screened Financial Advisor In 3 Minutes Find A Financial Advisor Via Datalign Advisory

If you’re thinking about hiring a financial advisor, make sure you hire the best person for you and your situation. Here are 10 questions you should ask an advisor before hiring one.

1. Are you a fiduciary?

A fiduciary works in the best interest of the client and only recommends investments that are the best fit. Nonfiduciaries, such as broker-dealers, need only to recommend products that are “suitable” — even if they’re not the lowest-cost or most ideal for you.

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2. How do you get paid?

Advisors can use a variety of fee structures. To keep it simple and avoid conflicts of interest, consider focusing on fee-only advisors. They don’t get commissions for selling products.

“Make sure it’s fee-only — those particular words,” says Alice Finn, founder of PowerHouse Assets and author of “Smart Women Love Money,” a guide to investing. (Some of the questions here are from her book.)

Fee-only advisors might charge a percentage of the assets they manage for you (1% is common), a flat fee for services, or an hourly fee. If cost is a concern, you may want to go with a low-fee robo-advisor, or an online planning service like those mentioned above.

3. What are my all-in costs?

In addition to paying the advisor, you’ll face other fees — and you’ll want to know what they are. Fees can reduce your savings over time. “You can lose half your net worth without even knowing it,” Finn says. “You want to be vigilant.”

» Need to back up a bit? Read our cheat sheet for how to choose a financial advisor.

4. What are your qualifications?

Financial professionals can have a confusing list of initials behind their names. And whether a finance professional goes by “investment advisor” or has a certified financial planner designation, it’s your job to vet them.

The Financial Industry Regulatory Authority’s (FINRA) professional designations database will tell you what they mean; if there are any education requirements; if anyone accredits the designation; whether there’s a published list of disciplinary actions; and if you can check professional status [0] View all sources Financial Industry Regulatory Authority . FINRA Professional Designations database . Accessed Aug 4, 2025.

You can also use a Form ADV to check an advisor’s record.

5. How will our relationship work?

Put another way: How much access will you have to the advisor? You want to know how often you’ll meet and whether they’re available for phone calls or emails outside of scheduled appointments. (Learn more about what financial advisors do and what you can expect from the relationship.)

6. What’s your investment philosophy?

It’s important to know whether you have the same investment management philosophy. Here’s why: “You have to believe in what they’re doing to stick with it,” Finn says. “When financial advisors really do their job is when the market is down and they can convince you to stick to the same page,” she says.

It’s also important to make sure you and your advisor align on investment style. For example, if impact investing is important to you, you may want to ask whether your advisor will be able to help you create a portfolio that aligns with your values.

Also ask: Who are your typical clients? Find an advisor who is used to a situation like yours and is able to help you meet your goals.

7. What asset allocation will you use?

You’ve heard how important it is to be diversified, right? Your asset allocation is how you create a diversified portfolio.

“It drives most of your returns,” Finn says. “You don’t want someone who is just going to pick U.S. large-company stocks.”

She says your portfolio should include domestic and international stocks, and small-, mid- and large-cap companies.

8. What investment benchmarks do you use?

Advisors should use benchmarks that directly relate to what they’re invested in, or be able to explain why they don’t.

Some managers will use a “straw-man benchmark,” Finn says. For example, the advisor says: “My goal is to beat the Standard & Poor’s 500.” But if that advisor is investing in a diversified portfolio beyond simply large-cap U.S. companies, that benchmark is a mismatch.

“Over time, they should beat the S&P 500, because they’re taking on more risk,” Finn says.

9. Who is your custodian?

Ideally, your financial advisor has hired an independent custodian, such as a brokerage, to hold your investments rather than act as their own custodian. That provides an important safety check.

“If I send my clients performance information … and it tells them how much I say is in their account, they can go online any minute and double-check,” Finn says.

10. What tax hit do I face if I invest with you?

This route helps ensure the advisor has your tax bill in mind when making financial decisions. And asking about investment taxes and fees is a way to explore what your estimated net return might be.

“What you want to know is: What do you get to keep after fees and after taxes?” Finn says.

What type of financial help are you looking for?

I want a local advisor or a wide array of financial advice.

If you want in-person financial planning or have a complex situation, a traditional financial advisor near you may be the right choice. A financial advisor will take inventory of your current financial situation, find areas for improvement and then create a personalized plan. Most local advisors can help you do things such as:

Create an emergency fund.

Get better at saving and budgeting.

Set short- and long-term money goals.

Plan for retirement.

Tax planning.

Understand which account structures and investment products make sense for your situation.

Decide the right asset allocation or investment mix for your portfolio.

Pay off debt.

Manage investments.

I want personalized financial advice but don’t need to meet my advisor in person.

Many services offer online financial planning for less than you’d pay a traditional in-personal financial advisor or financial consultant. These companies provide investment management and holistic financial planning; the major difference is that you’ll meet your advisor virtually — by phone or video chat — rather than in a local office. Most services pair you with a dedicated advisor or certified financial planner; some less-expensive options offer access to a team of advisors.

» Learn more: See our full list of the best financial advisors

I just need to get started investing for my financial goals.

I just need to get started investing for my financial goals.

A robo-advisor may be the best fit if you’re just starting out or only need investment management. For a low fee, these computer-based services choose and manage an investment portfolio for you. Some also offer access to financial advisors if you have questions about your investments or your goals. Robo-advisors often have low or no account minimums, so it’s easy to get started.

If building out an investment portfolio is your main goal, another option is to open an account with a broker. This route often requires more hands-on involvement than working with a robo-advisor, but it can also offer you the ability to select your own investments and the flexibility to set your own investment strategy. Some online brokerages also offer ancillary services that allow you to meet with a financial advisor.