Choosing a financial planner and answers to the top financial advice questions

Navigating the world of financial planning can be daunting, especially when it comes to preparing for retirement. That’s why we’ve addressed some of the most common questions about choosing and working with financial advisors to help you make informed decisions.

How to choose a financial planner for retirement/How to hire a retirement advisor

Selecting the right financial planner is one of the most important steps you can take toward a secure retirement. Start by assessing your specific financial needs and goals, then look for an advisor who specializes in that area. Consider their experience, reputation, and whether they have a fiduciary duty to act in your best interest.

Much like choosing a primary care physician, finding the right planner comes down to trust and comfort. You’ll be sharing personal details about your finances, goals, and concerns—so it’s critical to find someone you connect with and feel confident in.

Steps to finding the right advisor

1. Assess your retirement planning needs—Clarify what you want help with. Examples might include budgeting, savings optimization, balancing competing goals, insurance retirement income planning, investments, charitable giving, maximizing your after-tax estate, or Social Security claiming, among others.
2. Research and gather recommendations—Ask friends or family and check online reviews.
3. Check credentials and qualifications—Look for designations such as the CERTIFIED FINANCIAL PLANNER^® professional designation and ensure they specialize in retirement planning. If the prospective planner is a registered investment advisor or the firm is a registered broker‑dealer representative (holds FINRA Series 7 and/or 63), you should also search for the them on brokercheck.finra.org/. Disclosures such as bankruptcies, legitimate allegations of fraud, financial settlements, crimes, etc., are all reported here in addition to industry experience, licensing status, and employer history.
4. Evaluate experience and expertise—Ask about their track record with clients who have similar goals.
5. Understand their approach and services—Make sure that it aligns with how you want to manage your money.
6. Consider fee structures—Understand whether they charge a flat fee, an hourly rate, or a percentage of assets.
7. Verify fiduciary status—Ensure that they are legally required to put your best interests first.
8. Interview multiple advisors—Schedule consultations to compare approaches and see who you feel most comfortable with.
9. Check references and reviews—Speak with current or former clients when possible.
10. Evaluate ongoing support—Ask how they’ll help monitor progress and adjust your plan over time.

By following these steps, you’ll not only find an advisor who meets your technical needs but one who can also guide you with confidence, clarity, and trust.

Helpful tips from our CONFIDENT CONVERSATIONS^® on Retirement podcast season 3 episode on financial advice.

What is the difference between a retirement planner and a financial planner?

A retirement planner focuses specifically on strategies to ensure you have sufficient income during retirement. A financial planner, on the other hand, provides broader financial advice, including budgeting, investing, tax planning, risk management and insurance, estate planning, and retirement savings and income planning.

Knowing this difference can help you decide which type of advisor best suits your needs.

What qualifications should my advisor have?

Your advisor should have relevant qualifications such as earning the CERTIFIED FINANCIAL PLANNER^® professional, Chartered Financial Analyst^®, or Chartered Retirement Planning Counselor^(TM) designations. FINRA licenses may be applicable as well. If so, you can look up an advisor’s experience and disclosures on FINRA BrokerCheck.

“It’s crucial to find someone you trust and feel comfortable with, much like choosing a primary care physician.”
Francisco Negrón

Each designation serves a different purpose and is suited to various career paths within the financial industry. Understanding their qualifications is crucial, but it’s also important to know how advisors charge for their services. Someone who needs holistic financial planning as their life needs and goals change might opt for a CERTIFIED FINANCIAL PLANNER^® professional. However, an individual who is very well funded for retirement and already has an accountant and lawyers but only needs investment help might choose a Chartered Financial Analyst^®.

“It’s important to find someone who can act as a financial coach, helping you identify goals, develop a plan, and monitor progress over time.”
Emily Herstein, CFP^®

What benefits can I expect from hiring an advisor?

The benefit of working with a financial advisor can be that they have received extensive, formal board-registered training, passed a comprehensive exam, and met stringent education and experience requirements. They also must adhere to ongoing continuing education and ethics requirements, have a fiduciary duty to clients, and follow a holistic approach to planning. 

Hiring an advisor can provide:

• Peace of mind
  One of the most significant benefits of hiring a financial advisor is the peace of mind that comes from knowing your financial future is in capable hands. Managing finances can be stressful, especially when dealing with complex investment decisions, tax implications, and retirement planning.
  
  A financial advisor can alleviate this stress by providing clarity and confidence in your financial plan. They help ensure that your financial strategies are aligned with your goals, allowing you to focus on other aspects of your life without constantly worrying about your financial well-being.

“Having someone to help you stay the course during market changes and life events is invaluable.”
Emily Herstein, CFP^®

• Personalized financial strategies
  Financial advisors offer personalized financial strategies tailored to your unique circumstances, goals, and risk tolerance. They take the time to understand your financial situation, including your income, expenses, assets, and liabilities.
  
  Based on this comprehensive understanding, they develop a customized plan that addresses your specific needs, whether it’s saving for retirement, funding a child’s education, or purchasing a home. This personalized approach ensures that your financial plan is not only effective but also adaptable to changes in your life or financial situation.

“A financial professional can help you adjust your plan as life throws curveballs or presents new opportunities.”
Emily Herstein, CFP^®

• Expert guidance
  Financial advisors bring a wealth of knowledge and expertise to the table, offering guidance that can be invaluable in navigating the complexities of financial markets and regulations.
  
  They stay informed about the latest financial trends, investment opportunities, and tax laws, ensuring that you receive up‑to‑date advice.
  
  This expert guidance can help you:
  • Make informed decisions,
  • Avoid common pitfalls, and
  • Capitalize on opportunities that align with your financial goals.

Additionally, advisors can provide an objective perspective, helping you stay disciplined and focused on your long‑term objectives, even during market volatility or economic uncertainty.

“It’s important to have a trusted professional who understands your plan and can help you navigate challenges.”
Matt Spratt, CFP^®

Overall, these benefits combine to create a comprehensive support system that enhances your financial well-being and helps you achieve your financial aspirations.

Advisors can help:

• Optimize your investments,
• Minimize taxes, and
• Ensure that you’re on track to meet your financial goals.

How do advisors charge for financial advice?

It’s important to understand ways advisors are compensated/incentivized as well as referral compensation or conflicts of interest. Advisors may charge in several ways:

• A percentage of assets under management (AUM) after enrollment in a service—calculated and charged monthly or quarterly.
• Flat annual fee, hourly rate, or retainer fee (x dollars per quarter)—this fee might be based on: value provided, client’s net worth, complexity of client situation, time required to service client.
• Commission-based (earning a commission on products sold) or from their firm. This is less common than it once was (before free online trades, no-load mutual funds, and exchange-traded funds became highly prevalent).

Some individuals opt for a fee-only advisor due to their perceived objectivity in that they do not earn commissions on product sales.

How much will I have to pay for an advisor?

The cost of hiring an advisor varies.

• Clients should make sure they also examine the underlying weighted expenses for the investments they hold to understand the total annual fee.
• For instance, the T. Rowe Price advisory service charges a .5% investment management fee (AUM) and assumes .5% weighted expense of underlying funds. All-in costs shall not exceed 1%.
• Firms that charge a 1% management fee and have .5% expenses on underlying investments have an all-in cost of 1.5%.

It’s important to understand the fee structure up front and ensure that it aligns with your growth objectives and perceived value for the cost.

“While no one likes paying fees, the value derived from expert advice can outweigh the costs.”
Matt Spratt, CFP^®

At what age should I hire a financial advisor?

There’s no specific age to hire a financial advisor, it largely depends on your situation, but starting early can be beneficial. Many people seek advice in their 30s or 40s as they begin to accumulate wealth and plan for retirement. Others choose to seek a financial advisor as life gets more complex—more accounts, more money, higher income, more competing goals (college, retirement, real estate, etc.), multiple real estate properties, growing taxable account balances—or upon life events such as an inheritance, a major move, a major promotion, or stock compensation plans. Also, many people seek an advisor in the five years before and 10 years after retirement.

At what net worth should I hire a financial advisor?

This largely depends on the person and their situation. While there’s no set net worth threshold, individuals with a growing portfolio or complex financial situations may benefit from professional advice. Generally, those with $250,000 of assets or more to invest may benefit from working with a financial advisor. Keep in mind that some advisors have minimum asset thresholds that could range from $25,000 to $1 million or even more. If managing your finances feels overwhelming, it might be time to consult an advisor.

How do I know when I need a financial advisor? What are the signs I need a financial advisor?

There’s no single moment when everyone needs a financial advisor—it depends on your personal circumstances. But there are common signs that may indicate it’s time to seek professional guidance.

You may benefit from an advisor if you’re:

• Uncertain about your financial future or unclear about your goals.
• Experiencing major life changes, such as marriage, the birth of a child, divorce, or receiving an inheritance.
• Lacking time or expertise to manage your investments effectively.
• Facing growing tax complexity or a complicated financial situation where prioritization feels overwhelming.
• Building wealth and realizing you have more to lose without a plan.
• Struggling with debt or unsure how to balance competing financial priorities.
• Unsure about your investment strategy or prone to emotional investing, where a trusted partner could provide accountability and coaching.
• Starting to think seriously about retirement and want a structured plan.

Ultimately, if you find yourself feeling stressed, uncertain, or simply too busy to manage your finances confidently, a financial advisor can help you create clarity, stay on track, and prepare for what’s ahead.

“Anytime you hear ‘congratulations’ or ‘I’m sorry,’ it’s a good time to check in with your financial professional.”
Emily Herstein, CFP^®

When should I ask for help with my investments?

Seek help if you’re:

• Inexperienced and could benefit from education to feel confident in your investment strategy.
• A sophisticated investor and want to get a second set of eyes/gut check on your approach.
• Without the skill, will, or time to manage your investments responsibly.
• Prone to panic based on market performance and could use coaching.
• Prone to taking undue or unnecessary risk.

Or when you:

• Are unsure about investment choices and the risks and opportunities involved,
• Want to diversify your portfolio, or
• Need to align your investments with your long-term goals.

An advisor can provide valuable insights and help you reach your financial goals and make informed decisions.

Final thoughts

Hiring a financial advisor can be a crucial step in securing your financial future. By understanding the role of advisors and knowing when to seek their help, you can make informed decisions that align with your financial goals.

“It’s not just about finding an advisor, but finding one who aligns with your goals and priorities, ensuring a trusted partnership throughout your financial journey.”
Francisco Negrón