Type the words “financial planner” or “financial advisor” into your search engine and you’ll get well over two and a half million hits. Face it – many people (perhaps even most people) would benefit from the services of a qualified financial planner, but when it comes to selecting the right one, we’re stumped.
Make no mistake: choosing the “right” planner or adviser to guide you through the financial wilderness is essential. That’s because, in the area of personal finance, every one of us is unique. We’re all at different stages of life. We each have different tolerance for risk. Our family situations vary widely, as do our retirement dreams. Considering the array of variables, how do you pick the financial adviser or planner who’s right for your particular situation?
Last summer, we came across this article from Kiplinger in which freelance financial writer Laura Gariepy takes a stab at answering that question. (Elsewhere on the Blog this week, we’re offering a related article discussing how much you should be charged for a planner’s services.)
Gariepy’s premise is simple. “Not all advisers are created equal,” says Kiplinger. “From verifying credentials to trusting your gut, follow these rules to find a financial adviser.” We should point out that much of Gariepy’s advice is going to require effort on your part. But with your financial security at stake, we’d say the benefit is well worth the effort.
Why a Certified Financial Planner Is Essential as Life Gets More Complicated
The older we get, the more complicated our finances seem to become, says Gariepy: “You have assets to protect (and continue to grow), taxes to optimize, a legacy to leave and more. It makes sense to seek help to ensure everything is done correctly.”
But that said, she recognizes that finding the ideal financial adviser is “easier said than done,” especially with so many qualified professionals out there and so little guidance about the best fit for you and your situation.
“Keep reading for a step-by-step approach to finding and vetting a financial adviser,” she writes. “That way, you can start working with a professional with a background and skill set tailored to your needs today — and reap the rewards long into the future.”
Step 1: Understand Your Own Needs and Preferences
The first step in asking for help is always going to be understanding exactly what kind of help you need. Before you start looking for a financial adviser, Gariepy encourages you to make a list of everything you want them to do for you.
“You might need help with managing your retirement income in the most tax-efficient way [or with] planning your legacy,” she writes. “You might need someone to help select the right insurance policies for your future, such as long-term care coverage. You may need assistance growing your assets in a way that feels safe and sustainable.”
She also advises making a list of must-have characteristics and personality traits. “For instance, you might want a fiduciary (someone who will work in your best interest, not their firm’s) who is warm, a great listener and funny,” she adds. After all, personal chemistry definitely matters.
Step 2: Ask Your Friends and Conduct a Targeted Search
You can give yourself a much-appreciated shortcut in the search process by asking around to your trusted friends who are in similar financial situations. Ask them for referrals and be sure to press for their candid opinions.
But that doesn’t always yield actionable results, so Gariepy writes, “If you can’t find a financial adviser via word-of-mouth, run searches on the CFP Board and National Association of Personal Finance Advisors (NAPFA) websites. You’ll receive pre-vetted listings of professionals in your area, sparing you from the hassle of searching on Google.”
Step 3: Make Sure Candidates Have the Right Professional Credentials
Once you have a solid list of contenders, Gariepy says, it’s time to start the filtering process.
“The first step is to verify their credentials,” she writes. “For instance, if they claim to be a certified financial planner (CFP®), you can check their status on the CFP Board website. Search results will also reveal whether the adviser has ever been disciplined by the board or declared bankruptcy within the last decade.”
Step 4: Check Online Sources to Gauge Their Specific Expertise
Not all financial advisers are created equal, and many specialize in certain specific fields, age groups, or financial situations.
“They might also specialize in taxes, estate planning, investing or other financial areas,” Gariepy writes. “You’ll want to partner with someone with deep expertise in the situations and concerns associated with your life stage and goals.”
To gauge where their strengths lie, Gariepy suggests carefully reviewing their company website, professional social media presence (such as LinkedIn), and any other relevant work they’ve shared, such as books, talks, or research papers.
“Look at the language they use,” Gariepy suggests. “Does it resonate with you?”
Step 5: Check References and Scour Online Reviews
And now it’s time to dig into whatever you can find online. Or, as Gariepy puts it: “At this stage, Google is your friend.”
Search for each adviser on your list and see what pops up in the search results. Certain specific platforms can give you more details, like the Better Business Bureau, Trustpilot, Yelp, or your local Chamber of Commerce.
“Read several reviews, testimonials and note any patterns, positive or negative. Generally, you’ll want to see a long history of happy clients,” Gariepy writes.
Step 6: Interview the Top Financial Advisors You’re Interested In
After you’ve whittled your list down to the closest matches, it’s time to reach out. Call their office or use the online form on their website to start the conversation. “You shouldn’t have to pay anything to learn more about their practices,” Gariepy adds.
She provides a comprehensive breakdown of things you should ask them about in your first chat, covering credentials, typical clientele, and offered services like tax preparation or investment management. She emphasizes exploring their investment philosophy to see if they operate as a fiduciary, checking their accessibility, reviewing an example portfolio, understanding their fee structure, looking up disciplinary history, and confirming a robust succession plan.
If you’ve done your research ahead of time, the odds are good that you’ll already have the answers to these questions, but Gariepy encourages asking them anyway so you can check for any inconsistencies in their replies.
“Pro Tip: Believe your gut,” she adds. “If it starts waving red flags, move on to the next name on your list.”
Step 7: Do a Side-by-Side Comparison of Your Top Picks
You’ve hit the home stretch now! The last step according to Gariepy is to compare your top two or three options side-by-side. Pay special attention to key details such as services, fees, performance, and investment strategy. You could even use a table to make this task easier.
“Which adviser has the edge?” Gariepy writes. “If they all seem the same on paper, which professional made you feel most comfortable and confident when interviewing them?”
When you select a winner, book your initial appointment. And don’t feel compelled to stick with the same adviser forever. If you ever become dissatisfied with the relationship, you can always change to a different professional.
Step 8: Think of Your Wealth Management as a Team Effort
In her conclusion, Gariepy reminds us that we don’t have to hire just one person to handle all of our financial needs, although that’s certainly an option.
“You might have met several qualified professionals during your research, each with their expertise,” she writes. “If that’s the case, you might want to build a team that supports various aspects of your financial life, such as taxes, estate planning, insurance and overall planning.”
If all has gone to plan and with a solid professional—or team of professionals—behind you, you’ll be well on your way to a healthier financial future.
Rajiv Nagaich – Your Retirement Planning Coach and Guide
Rajiv Nagaich’s newest program on PBS, called Designing Your Ideal Future, is bringing Rajiv’s powerful message to Americans from coast to coast. This engaging and challenging PBS show is prompting thousands to take a fresh look at the type of planning that will help them succeed in retirement.
In this one-hour PBS special, Rajiv Nagaich takes viewers step-by-step through the principles of creating a retirement plan that truly supports the life you want to live. Instead of generic check-the-box paperwork, Rajiv reveals how to infuse your perspective — your values, goals, and priorities — into every legal document and life plan component so your plan becomes a living system for your future.
Designing Your Ideal Future includes insights from real-world planning examples and a live Q&A with Rajiv Nagaich that answers viewer questions about retirement planning, legal readiness, and family communication. It’s perfect for anyone approaching retirement, currently retired, or responsible for a loved one’s future care — and for those who want a clear, effective approach to planning that prioritizes personal choice and quality of life.
What About Your Own Retirement Plan?
You’ve heard Rajiv say it repeatedly: 70 percent of retirement plans will fail. If you know someone whose retirement turned into a nightmare when they were forced into a nursing home, went broke paying for care, or became a burden to their families—and you want to make sure it doesn’t happen to you—then these materials are your key to retirement success.
Visit your local PBS station’s schedule to find airtimes and learn how to access companion resources—including a free Legal Readiness Quiz and tools to help build your complete LifePlanning system.
Don’t remain among the millions of Americans sleepwalking their way into a retirement they never wanted. Instead, your retirement can be the exciting and fulfilling life you’ve always hoped it would be. Start by watching, reading and sharing Rajiv’s important message.
And remember, Age On, everyone!
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