Step-by-Step Guide: How to Find a Financial Advisor

Choosing a financial advisor is one of the most important decisions you can make for your financial life. The right fit can help you organize your goals, evaluate options, and create structure for your future. But with so many titles, credentials, and fee models, it can be difficult to know where to begin.

This guide provides a clear, practical process to help you evaluate financial advisors, understand how they work, and ask the right questions.

Why Finding the Right Advisor Matters

Money is deeply personal. It touches retirement, children’s education, taxes, estate planning, and even family relationships. Many people look for a financial advisor because they want:

• Clarity – someone to make sense of complex choices

• Accountability – a partner to keep plans on track

• Structure – regular reviews and planning conversations

• Confidence – reassurance that nothing important is falling through the cracks

An advisor can provide value, but only if their model, approach, and experience align with your circumstances. That’s why due diligence is critical.

Step 1: Clarify Your Goals

Before searching for names, take time to define what you want to accomplish. This step is often overlooked, but it’s the most important.

Ask yourself:

• Am I looking for help with budgeting, saving, or debt management?

• Is my focus investments, retirement, or equity compensation?

• Do I need tax or estate coordination?

• Is this a one-time consultation or an ongoing relationship?

• Do I want someone to work with me only, or help facilitate family discussions as well?

Write down your top three priorities for the next 12–24 months. Those priorities become your filter when evaluating advisors.

Step 2: Understand Advisor Types

The term “financial advisor” is broad. Here are the most common categories:

• Fee-Only Advisors – Paid directly by you, either as a flat fee, hourly, or as a percentage of assets. Many clients prefer this structure for its transparency.

• Fiduciaries – Advisors who are legally obligated to put your interests first. Asking for a written fiduciary pledge can clarify whether this applies at all times.

• Commission-Based Advisors – Compensated by selling products such as investments or insurance. Understanding this structure is important so you can weigh potential incentives.

• CFP® Professionals (Certified Financial Planners) – Credentialed advisors trained across investments, retirement, tax, and estate planning.

• Specialists – Advisors who focus on niche areas like cross-border taxation, business-exit planning, or equity compensation.

• Robo-Advisors and Digital Platforms – Technology-driven solutions that provide investment management, sometimes paired with human support.

The right type depends on your goals, your complexity, and the kind of relationship you want.

Step 3: Know Where to Search

You can find advisors through many channels. Each has advantages and limitations.

• Professional Directories – Organizations like the CFP Board, NAPFA, and the SEC’s adviser database list credentialed professionals.

• Referrals from Friends or Family – Hearing about real experiences can be useful. Ask specific questions: “What did this advisor help you accomplish?” instead of only “Do you like them?”

• Other Professionals – Attorneys, accountants, and business advisors often know who delivers consistently.

• Financial Institutions – Banks and credit unions may offer financial planning, though services can be limited or tied to products.

• Independent Support – Third-party firms such as Select Advisors Institute can help clients run a structured search or RFP process to evaluate advisors neutrally.

Step 4: Vet and Interview Advisors

Once you’ve identified candidates, schedule conversations. Speaking to at least two or three advisors helps you compare approaches.

Key questions to ask:

1. Are you a fiduciary at all times? Can you confirm this in writing?

2. How are you compensated? (Flat fee, hourly, AUM, commission). What’s included and what’s not?

3. What credentials do you hold (CFP®, CPA, JD, others)?

4. Who is your typical client? Do you work with situations similar to mine?

5. How do you coordinate with my other professionals, such as CPAs or attorneys?

6. What does your process look like in the first year compared to later years?

7. What kind of reporting, technology, or dashboards do clients see?

8. How do you define success in a client relationship?

Bring the same list of questions to each conversation so you can compare responses side by side.

Step 5: Verify Background and Credentials

Verifying an advisor’s background is straightforward and should always be part of your process.

• FINRA BrokerCheck – Shows licenses, employment history, and any disciplinary records for brokers.

• SEC Investment Adviser Public Disclosure (IAPD) – Provides registration details, ownership, and disclosure information for investment advisors.

A few minutes on these sites can give you important clarity.

Step 6: Understand Fees

Fee structures vary widely. Understanding them upfront helps avoid surprises.

• AUM (Assets Under Management): A percentage of assets managed, often 0.25%–1% annually. Costs rise with account size.

• Flat Fee or Retainer: A set cost per year or month, regardless of assets. Predictable for budgeting.

• Hourly or Project-Based: Pay for specific work such as creating a plan or reviewing stock options.

• Commission-Based: Paid through product sales. Transparency here is essential to evaluate incentives.

Ask for a written breakdown of your total estimated annual cost, including advisory fees, fund expenses, custodial charges, and other costs.

Step 7: Watch for Warning Signs

Most advisors act with professionalism, but here are areas to probe further:

• Lack of clarity about fees or fiduciary duty.

• Heavy focus on products before understanding your goals.

• Promises of performance or guaranteed results.

• No clear plan for tax or estate coordination.

• One-size-fits-all recommendations with minimal customization.

If you see these signs, consider seeking another opinion.

Step 8: Narrow the Field and Decide

After interviews and background checks, compare your options. Consider:

• Alignment with your goals

• Communication style and accessibility

• Breadth of services relative to your needs

• Cost structure and transparency

• Your comfort level and trust

Choosing an advisor is as much about fit as it is about technical skill.

Step 9: How Select Advisors Institute Can Help

The process above takes time, research, and careful comparison. Some families prefer to have a neutral partner manage the search process.

That’s where Select Advisors Institute (SAI) can provide support.

• Structured Search Support – SAI helps families design and run formal RFPs (Requests for Proposals) so they can compare advisors side by side.

• Evaluation Frameworks – Families receive objective scoring tools to weigh fee structures, service levels, and experience.

• Cross-Professional Coordination – When clients want multiple advisors evaluated together (e.g., wealth, tax, legal), SAI helps ensure apples-to-apples comparisons.

Important to note: SAI does not provide investment advisory services, does not manage assets, and does not guarantee outcomes. Its role is to support families in organizing the process, asking better questions, and staying in control of their decisions.

FAQs

How many advisors should I interview?
Speaking with at least two or three helps you compare approaches and philosophies.

Do I need a fee-only advisor?
Many families choose fee-only advisors for transparency, but the most important factor is understanding exactly how an advisor is compensated and whether that aligns with your needs.

Does Select Advisors Institute recommend specific firms?
No. SAI facilitates searches and helps evaluate options but does not endorse or recommend specific providers unless clear referral arrangements are disclosed.

Is this article investment advice?
No. This guide is for educational purposes only. Always consult licensed professionals before making financial decisions.

Final Thoughts

Finding a financial advisor is not about discovering the “perfect” person. It’s about identifying an advisor—or team—that fits your goals, offers transparent communication, and provides the right structure for your circumstances.

A thoughtful process—defining goals, interviewing candidates, verifying credentials, and comparing options—gives you confidence in your choice. And if you prefer structured support, firms like Select Advisors Institute can help you run a neutral, organized search so you can evaluate advisors clearly and make the decision that works for you.

Disclosure: This guide is for educational purposes only and should not be considered investment, tax, or legal advice. Select Advisors Institute does not provide investment advisory services or manage assets. Always verify advisor registrations through the SEC IAPD and FINRA BrokerCheck.