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How to Choose a Financial Advisor

Published Feb. 3, 2026
James McClenathen
Author: James McClenathen
James McClenathen
James McClenathen
Editorial Strategist

James McClenathen is a full-time Managing Editor and Personal Finance Writer at Motley Fool Money, overseeing the production and quality of editorial content while also writing about credit cards, investing, and everyday money management. He has worked at The Motley Fool since 2012 and brings extensive experience as an editor, reporter, and finance expert. A graduate of the University of Michigan, James has spent more than a decade of his career helping readers make smarter financial decisions.

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Choosing a financial advisor is a big decision. You may be trusting them with your money, your peace of mind, and your financial future.

If you know what to look for, though, you can find an advisor who understands your needs and helps you achieve your goals -- for a fair price.

If you're looking for professional financial advice, follow these steps.

1. Decide what type of financial advisor you need

There's a wide variety of "financial advisors." So before you start searching, figure out what kind of help you want.

Here are some of the most trusted types of financial advisors and their specialties.

Certified Financial Planner (CFP)

Specialty: all-in-one financial planning

CFPs are the "gold standard" of financial planning. They go through extensive education, testing, and work experience to earn their certification. They're also held to a fiduciary standard when giving financial advice, which means they're required to serve your best interests.

CFPs can offer advice on almost every aspect of your finances, including:

  • Budgeting
  • Retirement
  • Investing
  • Taxes
  • Insurance
  • Estate planning

A CFP is best for long-term, big-picture financial planning.

Certified Public Accountant (CPA)

Specialty: taxes

A CPA is a state-licensed accountant who can handle more complex tax work than most financial pros. CPAs must meet high standards of education, experience, and ethics.

A CPA can:

  • Prepare and file tax returns
  • Help you lower your taxes through proactive planning
  • Advise you on complex tax issues like self-employment, investments, equity comp, and real estate
  • Assist with IRS audits and represent you before the IRS

CPAs are most helpful for people who have complicated taxes that take a lot of paperwork.

Registered Investment Advisor (RIA)

Specialty: investments

An RIA is a person or firm registered with regulators to provide investment advice and management. Like CFPs, RIAs are held to a fiduciary standard.

An RIA can:

  • Build and manage a portfolio based on your goals
  • Adjust your plan over time as the markets and your life change
  • Help you with retirement planning, risk management, and tax-smart investing

RIAs are best for people who want investment advice or hands-off portfolio management.

Do you need more than one financial advisor?

It can make sense to work with more than one financial pro, but only if each one has a clear and important role.

For example, many people hire both a CFP and a CPA. A CFP can help you set goals and build a long-term plan, while a CPA can prepare and file your tax returns.

Some advisors hold multiple certifications, making them a "one-stop shop" for your financial needs.

2. Make sure you understand the fees

There are lots of ways for advisors to charge their clients.

Here are some of the most common fee structures:

  • Flat fee: You pay a fixed price for a single financial plan or a retainer (ongoing service).
  • Hourly fee: You only pay for the time your advisor spends working for you.
  • AUM (assets under management): You pay a yearly percentage of the investments your advisor manages, often around 0.50% to 1.00%.
  • Commission-based: Your advisor gets paid when they sell you a financial product, like insurance, annuities, or mutual funds.

It's best to avoid commission-based advisors, as they're incentivized to sell you products that earn them big commissions. Instead, look for "fee-only" advisors who charge flat fees, hourly fees, or AUM fees.

3. Prepare a list of questions

Before you start calling advisors, make a list of questions to ask them.

For example, it's smart to ask:

  • What their fee structure and rates are
  • Whether they are a fiduciary at all times
  • How they can help you with your specific needs
  • How often they're available to meet and answer questions

Any good advisor will give you clear, straightforward answers. It's important that you trust your advisor and understand how they work.

4. Check credentials and look for red flags

Always do a little research on an advisor before hiring them.

There are some online tools that can help:

  • CFP Board website: Shows the credentials and disciplinary records of CFPs
  • CPAverify: Shows the license status and disciplinary records of CPAs
  • SEC Investment Adviser Public Disclosure: Shows the state and SEC registration status, and disciplinary history, of certain investment firms and professionals (like RIAs)
  • FINRA BrokerCheck: Shows certain investment professionals' credentials, job history, and disciplinary records

5. Use a financial advisor matching tool to save time

It's important to shop around before you commit. But searching for a financial advisor can feel overwhelming. There may be dozens of options in your area.

Luckily, there are online tools that can help. A short questionnaire from our partner, SmartAsset, helps match you with up to three fiduciary financial advisors, each legally bound to work in your best interest.

6. Book consultations and hire the advisor you like best

Most advisors offer a free intro call. You should use it, and you should walk away with a full understanding of:

  • What they charge
  • How they'll help you achieve your goals
  • What happens next

If anything feels off, keep looking. The right advisor will help you feel confident and in control of your financial future.