Which financial advisor

The best financial advisor for you is the one that meets your needs, both in terms of services offered and the cost of advice. There are several different types of financial advisors too, so be sure to understand what their designations are and how they can best help you.

Is it important that you can speak with your advisor in person? If so, you may want to consider a financial advisor near you who knows both your face and your community. Is cost the biggest driving factor? If you don't mind meeting with an advisor virtually — via phone or video conference — online financial advisors can save you money and provide the comprehensive financial planning and investment management you need.

While there are technically no requirements to call yourself a financial advisor, some relevant education will help you reach your goal. While not always required, many personal financial advisor job postings list it as a desired qualification.

It helps to have a degree in finance, economics or another related topic. Gain experience. If possible, try to find an internship that will help you get some firsthand experience. Many advisory firms also offer on-the-job training for the first year a new advisor is working with them.

Having a certification pertinent to your field can help you grow your reputation, gain more clients and earn a higher salary. Summary of Best Financial Advisors of November Learn more. Read review. Vanguard Personal Advisor Services. Fees 0.

Promotion None no promotion available at this time. View details. Pros Low management fee and lower account minimum for an online planning service. Cons No tax-loss harvesting. Facet Wealth. Pros Free initial consultation. No upfront setup fee. Cons Wide fee range makes it difficult for potential customers to estimate costs. No in-person meeting option. Zoe Financial.

Fees Varies by advisor. Why we like it Zoe Financial isn't actually a financial advisory firm — the company connects clients to financial advisors. Pros Makes it easy to find a financial advisor. Cons Difficult to know financial advisor fees upfront. Betterment Premium. Promotion Up to 1 year of free management with a qualifying deposit.

Pros Unlimited access to a team of certified financial planners. Low management fee. Cons Clients don't receive a dedicated advisor. High account minimum. Harness Wealth.

Why we like it Harness Wealth isn't itself a financial advisory firm — the company serves to connect clients to carefully vetted firms. Pros Reduces uncertainty when selecting a financial advisor. Easy to get started. This helps you determine if their recommendations are actually better for you—or for their wallets. Fee-only financial advisors earn money from the fees you pay for their services. These fees may be charged as a percentage of the assets they manage for you, as an hourly rate, or as a flat rate.

Almost all fee-only advisors are fiduciaries. Generally speaking, they have chosen to work under a fee-only model to reduce any potential conflicts of interest. Some financial advisors make money by earning sales commissions from third parties. Others may charge fees, meaning they derive only part of their income from third-party commissions. Either way, financial advisors who earn third-party sales commissions derive some or all of their income from selling you certain financial products.

If you choose to work with a financial advisor who earns sales commissions, you need to take extra care. Commission-only advisors are not fiduciaries. They work as salespeople for investment and insurance brokerages, and are only held to suitability standards. Some financial products are predominantly sold under a commission model. Take life insurance: A fee-based planner who receives compensation for helping you purchase a life insurance policy may still have your best interests at heart when advising on other financial products.

Purchasing financial products via financial advisors that earn commissions may be a matter of convenience, especially if someone will receive a commission regardless of where you buy the product. And if you work with a fee-based financial advisor, understand when they are acting as a fiduciary, especially when they help you purchase financial products. Get started with a financial advisor with Personal Capital to work out your financial strategy.

IARs may call themselves financial advisors, and may be fee-only or fee-based. Some may have additional credentials, including the certified financial planner CFP designation.

A CFP designation indicates a financial advisor has passed rigorous industry exams covering real estate, investment, and insurance planning as well as has years of experience in their fields. Because of their wide range of expertise, CFPs are well suited to help you plan out every aspect of your financial life. They may be particularly helpful for those with complex financial situations, including managing large outstanding debts and will, trust, and estate planning. Robo-advisors offer low-cost, automated investment advice.

Most specialize in helping people invest for mid- and long-term goals, like retirement, through preconstructed diversified portfolios of exchange traded funds ETFs. People with complex financial needs should probably choose a conventional financial advisor, although many robo-advisors provide financial planning services a la carte or for higher net worth clients. The nature of the advisory field is also changing. Investors now usually have access to their accounts digitally and so, beyond traditional, in-person meetings, may meet with their advisors virtually for some or all of their portfolio review sessions.

Additionally, many robo-advisors offer a hybrid advice model, which combines the typical asset allocation and advice services of a traditional advisor with a digital, automated platform. These are computer algorithms, though, so don't expect customized advice, unique strategies, and hand-holding from them.

When deciding on the type and the scope of advice that you might need from a financial advisor, it's important to ask the right questions about your money needs and to assess your own level of comfort in managing your own finances.

Some consumers may balk at the idea of paying hundreds of dollars just to plan, budget, and invest their money, but think of it as an investment: The money can buy you a quality plan that can be put together in a few hours and last you 20 years, with only a minimal need for a financial checkup with the planner from time to time. CFP Board.

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If you don't understand something, ask the adviser to explain it. Be sure you're not receiving generic advice that could apply to anyone — ask questions about the suitability of the recommended products with your situation. You're trusting this person with one of the most important things in your life — your financial wellbeing — so they need to be right for you. This will prepare the adviser for what you're like and save time at your first meeting.

Ask your adviser to send you the form before your first meeting. They should also give you something called a 'key facts document', outlining their fees and what you can expect from your relationship.

Fees may vary depending on what you want advice for, and the amount of money in question. For more information on fees, check out our dedicated guide.

If you are happy to use the services of a financial adviser, they will carry out a 'fact find'. This provides the adviser with information about your finances, goals and attitude to risk so that they can recommend suitable products for you. This will be followed by a full financial plan, including product recommendations and any tax benefits available to you. Once you have agreed with a financial adviser's recommendations, and the cost of using his or her services , the plan that they have put forward will be implemented.

You may get the option of an ongoing review. Financial advisers are regulated by the FCA, and this gives you access to redress should anything go wrong with your advice through the Financial Ombudsman Service FOS. This means that you can complain to the FOS if you're unhappy with any advice you've been given or if you think you've been mis-sold, and the FOS will take the appropriate action — for example, ordering your adviser to pay compensation.

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Limited on behalf of Which? In this article. What can a financial adviser do for me? How do I find a good financial adviser? Independent financial advice Restricted advice Alternatives to financial advisers. Financial adviser qualifications explained What should I look for when choosing a financial adviser? What happens after I've selected an adviser?