Debt management and repayment: This could be helpful if you are struggling with credit card, medical, student loan or other debt and are unsure how to tackle it.<\/p>\n
Investing: Investment advisors<\/a> help select specific places to invest money. They can work with you online or in person, or you could opt for a digital version, such as a robo-advisor.<\/p>\n Retirement: An advisor can help you find ways to save, stay or get on track, and review your retirement strategy<\/a> to provide personalized recommendations.<\/p>\n Estate planning: A financial advisor might help you set up an estate plan<\/a> or a trust<\/a> to ensure your assets disperse in a certain way or that your loved ones have everything they need after you’re gone.<\/p>\n All of the above: If the idea of having one dedicated person or firm for all your financial questions and concerns is appealing, a holistic planner might be a good fit. Plenty of financial advisors offer full-service financial support.\u00a0<\/p>\n Step 2: Look for key\u00a0financial advisor credentials<\/p>\n Don\u2019t assume that someone with an official-sounding title has any specific training or credentials. Financial advisors can go by many names (e.g., investment advisor, broker, financial planner, financial coach, portfolio manager, wealth advisor, wealth manager or even financial therapist). However, many of the titles advisors use (including the term “financial advisor”), aren’t based on specific credentials. <\/p>\n Here are two actual credentials to look for when choosing a financial advisor.<\/p>\n Certified financial planner (CFP)<\/p>\n Financial advisors who hold a certified financial planner<\/a> designation have a fiduciary duty<\/a> to their clients as part of their certification[0]. This means they are required to work in the client\u2019s best interests rather than their own best interests or their firm\u2019s best interests. Working with a CFP who has a fee-only<\/a> payment structure is another way to ensure that the advisor is paid directly by you and not through commissions for selling certain investments or insurance products.<\/p>\n Registered investment advisor (RIA)<\/p>\n Registered investment advisors<\/a> are individuals or companies that provide numerous financial services, including personalized investment advice, and are bound by fiduciary duty. RIAs are also registered with and regulated by either the U.S. Securities and Exchange Commission or state regulators, depending on how much money they manage[0].<\/p>\n Step 3: Select\u00a0a financial advisor service type<\/p>\n There are three main service models or channels through which you can get help from a financial advisor: <\/p>\n In-person access to a human financial advisor.<\/p>\n Virtual access to a human financial advisor.<\/p>\n The option that’s right for you depends on your preferences, the services you want and your budget.<\/p>\n Traditional financial advisors<\/p>\n Traditional financial advisors are humans who can meet with you in person if you want and can help you with most or all of your financial planning needs.<\/p>\n Good when: You want specialized services, your situation is complex, or you want to meet your financial advisor in person and develop a long-term relationship with them. Many traditional financial advisors offer a holistic look at your finances, including goal-planning.<\/p>\n Look elsewhere if: You only need basic advice or investment management, or you don’t want to vet a potential advisor yourself.<\/p>\n Some of these financial advisors can match you with a local advisor, while others operate online and meet with clients virtually, via phone or video call.<\/p>\n Online financial planning services and advisors<\/p>\n This gives you virtual access to human financial advisors and sometimes automated investment management. You might be able to consult with a team of financial advisors if you have questions. Many online financial advisors match you with a certified financial planner.<\/p>\n Good when: You’re comfortable meeting with an advisor online or don’t know how to find an advisor. Online advisor marketplaces such as Harness Wealth<\/a> and Zoe Financial<\/a>, and many online advisors themselves, do the work of vetting a financial advisor for you. (NerdWallet also operates NerdWallet Advisory, a registered investment advisor offering advisor matches.)<\/p>\n Look elsewhere if: You’d prefer to work with an advisor in person, don\u2019t want automated investment management or may want guaranteed access to the same human advisor.<\/p>\n Want to work with someone local?<\/p>\n If you\u2019d prefer to work with an advisor in your community, and you\u2019re prepared to do the legwork yourself, here\u2019s how to approach the process.<\/p>\n Robo-advisors<\/p>\n A robo-advisor<\/a> is a digital service offering simplified, low-cost portfolio management. You answer questions online, then computer algorithms build an investment portfolio according to your goals and risk tolerance. Some robo-advisors offer higher-tier financial planning services.<\/p>\n Good when: You can\u2019t afford a complete financial plan just want simple investment management.<\/p>\n Look elsewhere if: You need more rigorous or holistic financial planning or want to work with a human.<\/p>\n These top robo-advisors charge low fees but still offer high-quality features, including automated portfolio rebalancing, exposure to a range of asset classes and financial planning tools. Many also offer access to financial advisors.<\/p>\n Step 4: Decide what you want to pay<\/p>\n Traditional financial advisors often charge a flat fee (the average is $2,554 per year), and a relative few charge by the hour ($268 is the average per hour). The majority, however, charge a percentage of your assets under management<\/a> (the average is 1.05%)[0]. <\/p>\n On a $100,000 account balance, 1.05% works out to about $1,050 per year.<\/p>\n Online financial planning services typically charge either a flat subscription fee, a percentage of your assets or both. For example, Empower charges 0.89% for the first $1 million of assets under management per year. Facet charges an annual fee that starts at $2,100. <\/p>\n On a $100,000 account balance, those rates work out to $890 to $2,100+ per year.<\/p>\n Robo-advisors typically charge an annual fee that is a percentage of your account balance. Fees frequently start at 0.25%; many top providers charge 0.50% or less. <\/p>\n On a $100,000 account balance, 0.25% to 0.50% works out to $250 to $500 a year.<\/p>\n Step 5: Vet the financial advisor<\/p>\n Always verify a financial advisor\u2019s credentials before you agree to work with them.<\/p>\n Research an advisor\u2019s background by looking at their Form ADV<\/a> on the SEC website.\u00a0<\/p>\n Review an advisor’s employment record (and look for red flags, such as disciplinary actions) on FINRA’s BrokerCheck<\/a> website.<\/p>\n See our list of questions you’ll want to ask before you sign on the dotted line, including whether the advisor follows a fiduciary standard, what their fee structure is, and how frequently you’ll communicate.<\/p>\n Step 6: Hire the financial advisor<\/p>\n Here is a general outline of the steps in engaging a financial planner or similar professional:<\/p>\n You have a consultation with the advisor to discuss your financial situation. This is typically free.<\/p>\n The advisor provides an engagement letter outlining their ethical principles and any potential conflicts of interest.<\/p>\n The advisor provides you with legal documents to sign.<\/p>\n The advisor begins gathering information on your financial situation and starts managing your finances.<\/p>\n Not sure whether a financial advisor is right for you? Take our quiz to help you decide.<\/p>\n Frequently asked questions<\/p>\n Who can be a financial advisor?<\/p>\n \u201cFinancial advisor\u201d is a general term that is not regulated; anyone can legally use that term. Always ask for (and verify) an advisor\u2019s specific credentials. Anyone who gives investment advice<\/a> \u2014 which most financial advisors do \u2014 must be registered as an investment advisor with the SEC or the state if they have a certain amount of assets under management.<\/p>\n When should you talk to a financial advisor?<\/p>\n You can seek out financial help at any time, but it\u2019s especially important to get financial guidance after significant life changes. Whether you\u2019re buying a house, starting a job, getting married or having a child, these life events can have major financial implications, and some upfront financial planning can go a long way toward building a stable financial future.<\/p>\n It\u2019s also wise to speak with a professional if your financial situation itself has changed. Maybe your salary has increased or you inherited some money from a relative. When money starts flowing in, it\u2019s a good idea to give it a positive direction; otherwise, it can be all too easy to spend unnecessarily.<\/p>\n Who can be a financial advisor?<\/p>\n \u201cFinancial advisor\u201d is a general term that is not regulated; anyone can legally use that term. Always ask for (and verify) an advisor\u2019s specific credentials. Anyone who gives<\/p>\n![\"Video](\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2025\/07\/sddefault.webp.webp\")
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