How to find a financial advisor you can trust
A good advisor can be worth the cost. A bad one can quietly cost you far more. Here's how to tell the difference.
Understand how they are paid
The single most important question is how your advisor makes money. Fee-only advisors charge you directly and do not earn commissions on the products they recommend, which removes a major conflict of interest. Commission-based advisors are paid by the products they sell — which does not make them dishonest, but it does change their incentives. Always ask for the full fee structure in writing.
Look for a fiduciary
A fiduciary is legally required to act in your best interest, not merely to recommend products that are "suitable." Ask directly: "Are you a fiduciary, at all times, in writing?" If the answer is anything other than a clear yes, keep looking.
Questions to ask before you hire anyone
- How exactly are you paid, and what will I pay in total each year?
- Are you a fiduciary 100% of the time?
- What is your investment philosophy, in one or two sentences?
- What are your qualifications and how long have you been advising?
- Can you show me, in writing, what you would do for me?
Do you even need one?
If your situation is straightforward, learning to invest yourself using a durable framework may serve you better and cost far less. If you want to build that skill, start with investing for beginners and the Five Criteria framework.
This is educational content, not financial or legal advice. Always do your own due diligence before hiring any advisor.