Finding a Financial Advisor You Can Actually Trust

Most people don't need an advisor forever — but at the moments that matter (a job change, an inheritance, five years out from retirement, or realizing you're behind), an hour with the right professional can be worth far more than it costs. The hard part is that "financial advisor" is a title almost anyone can use. This page explains how to find one who is legally on your side, and how to check them yourself for free.

Two words that do all the work: fiduciary and fee-only

• Fiduciary means the advisor is legally required to put your interests ahead of their own. Many salespeople who call themselves "advisors" are held only to a lower "suitability" standard — they can sell you something that merely isn't unsuitable, even if a cheaper, better option exists.
• Fee-only means they are paid only by you — a flat fee, hourly, or a percentage of assets — and earn no commissions for selling products. This removes the biggest hidden conflict of interest. (Watch for "fee-based," which sounds similar but means they can also earn commissions.)

A fee-only fiduciary is the combination you want: paid by you, legally bound to you.

Vet anyone for free, in ten minutes

Before you hire — or even meet — an advisor, check them against these free, official sources:

• SEC Investment Adviser Public Disclosure — adviserinfo.sec.gov — see their registration, services, fees (Form ADV), and any disclosures.
• FINRA BrokerCheck — brokercheck.finra.org — employment history and any complaints or disciplinary actions.
• CFP Board — cfp.net — confirm a CERTIFIED FINANCIAL PLANNER™ credential is current and clean.

Prefer to do it yourself? Start with these directories

If you'd rather find your own advisor, these organizations list professionals who commit to the fee-only, fiduciary model:

• NAPFA — napfa.org — the National Association of Personal Financial Advisors; every member is fee-only and takes a fiduciary oath. A strong starting point for the DIY crowd.
• XY Planning Network — xyplanningnetwork.com — fee-only fiduciaries, many offering flat monthly or hourly plans rather than assets-under-management fees.
• Garrett Planning Network — garrettplanningnetwork.com — fee-only advisors who work by the hour, useful if you just want a one-time plan review.

Five questions to ask before you hire anyone

1. Are you a fiduciary 100% of the time, in writing?
2. How exactly are you paid — and is that your only source of compensation for my account?
3. What are the all-in costs: your fee, plus the fees of anything you'd put me in?
4. What are your credentials, and can I see your Form ADV?
5. Who is your typical client, and have you worked with people in my situation?

Red flags

• Dodges the fiduciary question, or will only commit "when acting as your advisor."
• Compensation comes from commissions, or they won't give you a straight fee number.
• Pressure to buy whole/universal life insurance or a variable annuity as the centerpiece of your plan.
• Promises of market-beating returns, or any guarantee that sounds too good.

Retirement Eagle publishes educational information only. It is not financial, tax, or legal advice. We may earn a commission if you connect with an advisor through some links, at no extra cost to you — see our disclosure.