What "Getting" a Financial Advisor Actually Means

Getting a financial advisor means finding someone licensed to give you money information, meeting with them to see if you work well together, and then either paying them directly or letting them manage your accounts. You are not filling out a form or waiting for approval — you are hiring someone the same way you would hire a plumber or accountant. The process takes a few conversations and a decision about how much you want to pay.

The first step is deciding what kind of advisor you need. Some advisors manage your entire portfolio and charge a percentage of what they manage. Others charge by the hour or by the project. Some work for banks or investment firms and are paid by commission when you buy their products. Each model has different incentives, and understanding that difference matters before you call anyone.

Key Takeaways

  • Financial advisors are licensed professionals you hire directly; you can search for them by name, credentials, or firm, and you should always verify their license before meeting.
  • Fee-only advisors charge you directly by the hour or percentage, while commission-based advisors are paid when you buy products they recommend, and this difference shapes what they suggest.
  • The FINRA BrokerCheck database and the SEC's Investment Adviser Public Disclosure database let you confirm an advisor's credentials and see any complaints filed against them.
  • A first meeting with an advisor should cover their experience, how they charge, what they specialize in, and whether they are a fiduciary — meaning they are legally required to put your interests first.
  • You can work with more than one advisor, and many people start with a fee-only planner for a one-time plan before deciding whether to hire someone for ongoing management.

Understanding the Three Main Payment Models

Fee-only advisors charge you directly — either an hourly rate, a flat project fee, or a percentage of the money they manage (called assets under management, or AUM). You pay them out of your own pocket. Because they do not earn money from selling you products, they have no financial incentive to recommend one investment over another. Many people trust this model because the advisor's interests align with yours.

Commission-based advisors are paid by the investment companies whose products they sell you. If they recommend a mutual fund, a life insurance policy, or an annuity, they receive a commission when you buy it. They may not charge you an upfront fee. The risk is that they may recommend products that pay them more rather than products that are best for you. Some commission advisors are required to act in your best interest (called a fiduciary duty), but many are only required to recommend "suitable" products — a lower standard.

Fee-based advisors use both models: they charge you a fee and also earn commissions on products they sell. This can create confusion about where their incentives lie. Ask directly how much of their income comes from fees versus commissions.

How to Find Advisors in Your Area

Start by searching the FINRA BrokerCheck database at brokercheck.finra.org. This is a free public database run by the Financial Industry Regulatory Authority. You can search by name, city, or firm. Every registered broker and advisor appears here, along with their credentials, employment history, and any complaints or disciplinary actions filed against them.

For advisors who manage money (rather than just selling products), also search the SEC's Investment Adviser Public Disclosure database at adviserinfo.sec.gov. This shows advisors registered with the Securities and Exchange Commission, their credentials, and their fee structure. Not all advisors are in this database — some are registered only with their state — but it is a good place to start.

You can also ask for referrals from your accountant, attorney, or friends who have worked with advisors they trust. Personal referrals often lead to good fits because someone you know can tell you how the advisor actually works, not just what their website says. If you want a specific type of advisor — someone who specializes in retirement planning, small business owners, or a particular investment philosophy — mention that when you ask for referrals.

What to Check Before You Meet

Once you have a name, verify three things before scheduling a meeting. First, confirm their license is current and in good standing using BrokerCheck or the SEC database. Second, check whether they have any complaints or disciplinary history. A single old complaint may not be a red flag, but multiple recent ones or a pattern of similar complaints should make you cautious. Third, ask directly whether they are a fiduciary — meaning they are legally required to put your interests ahead of their own profits.

This last point matters. Some advisors are fiduciaries only when they are managing your money, but not when they are selling you products. Others are fiduciaries only for retirement accounts (IRAs and 401(k)s) but not for regular investment accounts. Ask them to explain in writing when they act as a fiduciary and when they do not. If they seem evasive or unclear, that is a sign to keep looking.

You should also ask whether they have any conflicts of interest — for example, if they own the investment firm whose funds they recommend, or if they receive bonuses for selling certain products. Conflicts do not automatically disqualify an advisor, but you should know about them and understand how they are managed.

Questions to Ask at Your First Meeting

A good first meeting should answer these questions. How long have you been advising clients, and what is your experience with people in my situation (your age, income level, goals)? What is your investment philosophy — do you believe in picking individual stocks, using index funds, or something else? How often will we meet or talk, and how will you keep me updated on my accounts?

Ask about fees directly and in detail. If they charge a percentage of assets under management, what is the percentage, and does it change if your account grows? If they charge hourly, what is the hourly rate, and how many hours do they estimate your plan will take? If they earn commissions, which products pay them the highest commission, and how will they disclose that to you? Do not accept vague answers like "we charge competitive rates." Ask for a number.

Finally, ask what happens if you want to leave. Is there a contract, and if so, how long is it? Can you end it early, and if so, what are the costs? Will they help you move your accounts to another advisor, or will they make it difficult? An advisor who is confident in their work should be comfortable with these questions.

Different Routes Depending on What You Need

If you want a one-time financial plan — a roadmap for retirement, college savings, or debt payoff — look for a fee-only planner who charges by the project. This usually costs $1,500 to $5,000 depending on complexity, and you get a written plan you can take with you. You do not have to hire them for ongoing management. Many people use this route to get a plan, then manage their own investments or take the plan to a lower-cost provider like a robo-advisor.

If you want someone to manage your money for you, look for an advisor who charges a percentage of assets under management (typically 0.5% to 1.5% per year). This works well if you have $100,000 or more to invest, because the percentage fee becomes reasonable at that scale. Below that, hourly or flat-fee advisors may be cheaper.

If you are buying specific products like life insurance or annuities, you may work with a commission-based advisor. Just understand that they earn money when you buy, so get a second opinion before committing to anything expensive. Some people use a fee-only advisor to evaluate whether a product makes sense, then buy it from a commission advisor if they decide to proceed.

Red Flags and What to Avoid

Walk away from an advisor who guarantees returns, promises you will beat the market, or claims they have a secret strategy. No one can may provide investment returns, and anyone who says they can is either lying or breaking the law. Similarly, be cautious of advisors who push you to make quick decisions, pressure you to move all your money at once, or discourage you from asking questions.

Avoid advisors who do not disclose their fees upfront or who get defensive when you ask about conflicts of interest. If they will not put their fee structure in writing, that is a reason to look elsewhere. Also be wary of advisors who recommend complex products you do not understand — good advisors explain things in plain language and make sure you understand before you commit.

Finally, check whether an advisor has had any regulatory actions. A clean record does not may provide they are good, but a history of complaints, fines, or suspensions is a strong reason to choose someone else.

Frequently Asked Questions

Do I need a financial advisor, or can I manage my own investments?

You can manage your own investments, especially if you have a straightforward situation — a job, a 401(k), and a savings account. Many people do this successfully using low-cost index funds. An advisor makes more sense if your situation is complex (multiple income sources, inheritance, business ownership), if you have a large amount to invest, or if you find investing stressful and would rather delegate it.

How much does a financial advisor cost?

Costs vary widely. Fee-only advisors charge $150 to $400 per hour, $2,000 to $10,000 for a comprehensive plan, or 0.5% to 1.5% per year of assets under management. Commission-based advisors charge nothing upfront but earn a percentage when you buy products. Fee-based advisors use both models. Ask for a written fee schedule before you hire anyone.

What is the difference between a financial advisor and a financial planner?

The terms overlap, but generally a financial planner creates a written plan covering your whole financial life (retirement, college, insurance, taxes), while an advisor may focus on managing investments. Some people are both. Check what services they actually offer rather than relying on the title.

Can I fire an advisor if I am not happy with them?

Yes. If there is no contract, you can stop working with them anytime. If there is a contract, read it to see if there are early termination fees. Most advisors will help you move your accounts to another provider, though some may charge a fee for this. You have the right to change advisors whenever you want.

Should I work with an advisor from my bank or investment company?

You can, but understand that they may be incentivized to sell you the bank's or company's own products. Before hiring, ask whether they are a fiduciary, what percentage of their recommendations are the company's own products versus competitors' products, and whether you could get better terms or lower fees elsewhere. Getting a second opinion from an independent advisor is often worth the cost.