5 Things to Look Out for When Searching for a Financial Advisor
There’s a saying from financial expert Tim Maurer: personal finance is 99% personal and 1% finance.
You can have the spreadsheets. The projections. The retirement calculators.
But if your financial advisor does not understand you, your values, and your lived experience, the numbers will not mean much.
If you are the first in your family to earn more, invest, buy a home, or build wealth, choosing a financial advisor can shape not just your portfolio, but your confidence.
Here are five things to look out for when searching for a financial advisor.
1. What Is Their Mission and Purpose?
Before you look at credentials, look at heart.
Why do they do what they do?
Are they passionate about helping first generation wealth builders? Entrepreneurs? Purpose driven professionals? Families supporting parents while building their own future?
Their mission should connect to what you are seeking.
If you want long term planning and clarity, but their focus is primarily selling investment products, that may be a mismatch.
Questions to Ask a Financial Advisor About Their Mission
Who do you primarily serve?
Why did you become a financial advisor?
What does financial success mean to you?
How do you define impact?
You are not just hiring someone to manage money. You are inviting them into important life decisions. Alignment matters.
2. Are They a Fiduciary?
This one carries weight.
A fiduciary is legally required to put your interests ahead of their own. (Full definition of fiduciary found here)
Some financial professionals operate under a suitability standard. That means a product has to be suitable, but not necessarily the most advantageous option available.
If you are trying to build wealth intentionally, protect your family, and avoid costly mistakes, you want someone who is legally obligated to act in your best interest.
Questions to Ask About Fiduciary Responsibility
Are you a fiduciary at all times?
How do you mitigate conflicts of interests?
Clear questions often lead to clearer expectations.
3. How Are They Compensated?
Can you clearly understand what they will charge and how they get paid?
There are generally three common compensation structures:
Fee only, where you pay them directly
Commission based, where they are paid for selling products
A hybrid of both
Questions to Ask About Fees and Compensation
How do you get paid?
Do you receive commissions?
Do you receive compensation for referring me to other professionals?
Are there additional fees I should know about?
What would this cost me annually in dollars?
If you struggle to explain their fee structure after they walk you through it, that may be a sign to pause and ask more questions.
You deserve clarity.
4. What Services Will You Actually Receive?
Not all financial advisors provide comprehensive financial planning.
Some focus primarily on managing investments, which may include:
Portfolio management
Asset allocation
Rebalancing
Comprehensive financial planning usually looks at a broader picture:
Cash flow and spending plans
Tax strategies
Retirement projections
Insurance analysis
Debt management
Estate planning coordination
Major life decisions
If you want clarity and structure, ask them to outline what you will receive, how often you will meet, and what ongoing planning looks like.
Specific answers tend to create more confidence.
5. Do They Practice Value Based Planning?
Money is emotional.
Especially if you are the first to break financial barriers in your family.
Tim Maurer’s quote reminds us that spreadsheets alone do not build confidence. Personal finance is deeply tied to identity, upbringing, and responsibility.
Value based financial planning integrates the human side into the strategy.
It asks:
What does freedom mean to you?
What are you afraid of financially?
What are you proud of?
What do you want your money to represent?
How do you balance building wealth while supporting family?
Without this layer, financial planning becomes mechanical.
With it, your plan becomes more connected to who you are.
If you experience guilt around spending, feel like you are not doing enough, or wonder whether you are making the right moves, you may benefit from an advisor who understands behavior and mindset, not just investments.
The numbers matter. The meaning behind them often matters just as much.
Frequently Asked Questions About Choosing a Financial Advisor
How can I evaluate whether a financial advisor is acting in my best interest?
Ask whether they operate as a fiduciary and whether they will confirm that in writing.
Review how they are compensated and whether there are potential conflicts of interest.
Transparency, clarity, and a willingness to answer questions are helpful indicators.
Is working with a fee only financial advisor better?
Fee only advisors are paid directly by clients and do not earn commissions from selling products.
This structure may reduce certain conflicts of interest. However, what matters most is whether the advisor is transparent and aligned with your goals.
Understanding the compensation model helps you make a more informed decision.
How much does a financial advisor cost?
Costs vary based on services and structure.
Some charge a percentage of assets under management. Others charge a flat fee, monthly retainer, or hourly rate.
Instead of focusing only on the percentage, consider what services are included. Are you receiving ongoing comprehensive planning, or primarily investment management?
When might it make sense to hire a financial advisor?
You might consider working with a financial advisor if:
Your income has increased
You are navigating a major life transition
You are balancing multiple financial goals
You feel overwhelmed or uncertain about next steps
You want proactive planning rather than reacting to circumstances
If you are building wealth for the first time and want structure, clarity, and accountability, the right advisor can help you move forward with intention.
Final Thoughts
Searching for a financial advisor is less about finding someone who talks about returns and more about finding someone who understands you.
Look for someone who:
Aligns with your mission
Is willing to act as a fiduciary
Is transparent about compensation
Offers comprehensive financial planning if that is what you need
Integrates your values into the strategy
You deserve more than product recommendations.
You deserve guidance that supports both your financial goals and the life you are building.
This material is intended for educational purposes only. You should always consult a financial, tax, or legal professional familiar with your unique circumstances before making any financial decisions. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns. Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost. Advisory Services offered through Avise Financial Cooperative Inc, a Registered Investment Adviser with the SEC. Registration of an investment adviser does not imply a certain level of skill or training.
