Where do I find a financial advisor?

You can find a financial advisor through personal recommendations, online platforms, or financial institutions. There are also local financial advisors that you can contact to discuss your financial goals.

What should I look for in a financial advisor?

When looking for a financial advisor, it's important to consider their qualifications and experience level. You should also consider looking for a local financial advisor where you can easily schedule times to discuss your finances.

How to Choose a Financial Advisor

Q: What is the best type of financial advisor to have?

The best type of financial advisor depends on your individual financial goals and circumstances. For instance, a Certified Financial Planner (CFP) can provide comprehensive financial planning, while a Chartered Financial Analyst (CFA) might be more suitable for those seeking investment advice. Regardless of their area of focus, a financial advisor should work to understand your specific goals and customize a strategy that works for you. And the long-term relationship you build with your financial advisor should be the hallmark of every strategic decision. Get in touch with a financial advisor to learn more about how they might fit your needs.

Key takeaways

Financial advisors provide services that support all areas of your financial life, from saving and investing to estate considerations and insurance.
The best advisor for you will offer services at the appropriate time, respect your goals, and recommend products that fit your needs.
Edward Jones can help you match with a financial advisor who aligns with your goals so you can plan for the future.

How to choose a financial advisor in 5 steps

Now that you know what to look for, ask those you trust for a reference and conduct online research which may provide more insight to your advisor's investing approach and values.

It’s vital you feel confident in your advisor’s qualifications, so consider these steps to guide your selection process.

1. Know the services you need and which type of professional provides them

Not every financial advisor offers or focuses on the same services, so understanding what you need—and what you don’t—can help you quickly narrow the field. The key is to align your choice with what matters most: your personal situation, and financial goals. Define your aspirations, such as building a savings plan, managing investments, or preparing for retirement. The services you need will change over time, so choose an advisor who can evolve with you.

For example, a young person just starting their career might need immediate advice on investing and retirement planning. But over the next five years, they plan to buy a house and start a family. By choosing a financial advisor who can help them with debt management and college savings plans when they’re ready, they can continue building their financial future with the same level of trust.

In addition to services, your financial advisor may offer investment products like mutual funds, insurance policies, or annuities. They can explain which of these products would make a good fit for your financial strategy and why.

2. Check backgrounds and credentials

When choosing a financial advisor, you might notice a string of letters after their name – like CFP, CFA or chFC. These abbreviations represent professional designations that signal specific training and expertise. But what do they actually mean? Explore our guide that breaks down the most common financial advisor credentials, helping you understand what each designation stands for, the qualifications required to earn them, and how they might align with your financial goals.

Use the Financial Industry Regulatory Authority’s (FINRA) online Broker Check tool to search the certifications, registrations, and complaints that may be tied to a financial advisor. You can also ask the advisor about their credentials and issuing agency to help you decide which certifications are relevant to you.

3. Research financial advisor fees

No one structure is “better” than another, but it’s important to understand how your financial advisor is compensated.

Commission-based: You pay each time a transaction takes place
Fee-based: You make an annual payment equal to a percentage of the assets you have in management
Fee-only: You pay a set hourly fee for their services

4. Create a list of first meeting questions

There are two kinds of questions you should ask to gauge how well you and a potential advisor will work together. Practical questions about their services, tools and communication styles help you understand how the advisor runs their business, and relational questions, such as financial goals and pathways to achieve them, can help ensure you and an advisor align on a mutual investing approach.

Ask trusted friends and family members what questions they would ask or have asked their financial advisors.
Create a list of first meeting questions to ask in advance, including topics like communication frequency, investment philosophy, services, available investment tools, and their professional experience.

5. Narrow down a list of candidates and schedule a first meeting

Once you've narrowed your list to the top candidates, you know what services they provide and you’re confident in their reputation and qualifications, it's time to schedule an initial meeting.

Understand that the first meeting is for you and the advisor to learn about each other and make sure they’re a good fit for you.
Be prepared to discuss your current financial situation, savings and life goals, risk tolerance, communication style, and how involved you'd like to be in day-to-day investing.
Ask the financial advisor before the meeting if you can send any current investments, assets, income, expenses, debt, and insurance coverage through a secure document exchange tool to review beforehand.

The success of your relationship with your financial advisor comes down to trust and communication. The best advisor will explain your options clearly and welcome your questions.

FAQs on choosing a financial advisor

What are the pros and cons of a financial advisor?

Pros of using a financial advisor can include added knowledge, access to financial tools and education, and support for building long-term financial discipline and planning habits. Cons can include the overwhelming process of picking an advisor, fees, varying levels of experience and quality, and potential conflicts of interest.

Where else can I find a financial advisor?

You can find a financial advisor through personal recommendations, online platforms or financial institutions like your bank.

What is the best type of financial advisor to have?

The best type of financial advisor depends on your goals and situation. However, the most effective professionals often nurture a long-term relationship with you, where every strategic decision is collaborative and data-driven.

How can I determine if a financial advisor is right for me?

Understanding the types of financial advisors you can use, along with their different services and tools, can help you decide if using one is necessary. This financial insight report can also help determine if a financial advisor is right for you.

How much money should I have before getting a financial advisor?

While there is no universal amount of money you should have ready to invest before getting a financial advisor, fees and services can vary across financial institutions and professionals. You may need $0 to invest, or you may see minimums of $5,000 or more to access certain services and accounts.

What is a normal fee for a financial advisor?

There isn’t one normal financial advisor fee, as portfolios and investments can vary drastically across clients.

What are common fee structures?

Common fee structures can have commission, fee, or fee-only based payment structures. Commissions require you to pay each time a transaction takes place. Fee structures typically mean you’ll make an annual payment equal to a percentage of the assets you have in management, while fee-only structures mean you’ll pay a set hourly fee for services.