How to Find a Fiduciary Financial Advisor to Work With

Choosing a financial advisor is an important financial milestone. That is why you need to know whether they follow a fiduciary standard. A fiduciary advisor is required to act in your best interest, offer unbiased advice and clearly explain any fees or potential conflicts. This can help you get trustworthy support when planning for retirement, investing, or working toward other financial goals.

Do you have questions about investing, retirement planning, taxes or another financial situation? Speak with a fiduciary financial advisor today.

How to Find a Fiduciary Financial Advisor

To find a qualified fiduciary financial advisor you must first learn about their legal and ethical standards. Here’s how to get started.

Use a Professional Organization

Professional organizations can be a helpful way to find advisors who follow high ethical standards. The National Association of Personal Financial Advisors (NAPFA), for example, requires its members to be legally bound fiduciaries.These organizations maintain directories that let you search for advisors by location, credentials and specialty. Many listed advisors go through background checks and meet continuing education requirements. Reviewing profiles on these sites can help you compare options and choose someone who fits your financial needs.

Get Matched

Another strategy uses online platforms that match clients with financial advisors based on your unique needs. For example, SmartAsset’s financial advisor matching tool can help you find advisors in your area who operate under a fiduciary standard.

These platforms ask you to answer a series of questions about your financial goals, risk tolerance and specific requirements. The matching process curates a list that makes comparing services, fees, and credentials simple. This personalized approach increases the likelihood you’ll find a professional well-suited to your individual financial situation.

Ask Friends or Family for a Referral

Word-of-mouth recommendations can be a valuable resource when searching for a fiduciary advisor. Ask trusted friends, family members, or colleagues who have had positive experiences with their financial advisors for referrals. Personal referrals often provide insights that online reviews and directories cannot. It’s a great way for you to learn about the advisor’s style, responsiveness, and reliability in challenging market conditions. Once you receive referrals, schedule consultations. Come prepared to discuss your financial goals and gauge whether their approach aligns with your needs.

What to Consider

Fiduciary advisors at a meeting in their firm.

Once you have a list of candidates, it’s time to evaluate them. Here are some key factors that should factor into your approach:

Verify the Advisor’s Certifications

You should verify that the advisor holds the necessary license and is registered to operate as a fiduciary. You may also want to look for designations such as a Certified Financial Planner™ (CFP®) or Chartered Financial Analyst (CFA), which require members to adhere to a fiduciary standard. You can also use resources like the CFP Board’s directory to confirm that their credentials are current and free of disciplinary actions.

Know Which Services You Need

Consider the range of services the advisor offers. Financial planning can encompass retirement planning, investment management, estate planning and tax optimization. Assess your own financial needs and ensure the advisor’s expertise aligns with your priorities.

Have Them Explain Their Fees

Fee transparency is key when selecting a fiduciary advisor. You’ll want to know whether your advisor charges fee-only, fee-based, or commission-based fees. Each structure creates different incentives and potential conflicts of interest.

Fee-only advisors, for example, are paid directly by clients, which removes incentives to recommend products for commissions and reduces potential conflicts of interest. They typically charge a flat fee, percentage of assets under management or hourly fees.

Fee-based advisors, on the other hand, earn a combination of fees for their advice and commissions on the products they sell. While they still provide financial advice, their mixed compensation model can lead to potential conflicts. Commission-based advisors, for example, earn income solely from the sale of financial products. They may favor products that generate higher commissions, which might not always be in your best interest.

Request a clear breakdown of all fees during your initial consultation, ask for any disclosures regarding commissions, and ensure you fully understand the overall fee structure before proceeding.

Ask Questions

Prepare a list of key questions to ask during consultations. Inquire about the advisor’s fiduciary duty, how they handle conflicts of interest, their investment philosophy and how they monitor and adjust your portfolio over time. Asking about communication frequency, the services included in their fee and client references can also help you determine if their approach aligns with your expectations. Ensure that you feel comfortable with their responses and that they are willing to provide evidence of their fiduciary commitment.

Bottom Line

A fiduciary advisor reviewing a document for a client.

Fiduciary advisors offer the assurance that their decisions are made with your best interest in mind. Their expertise can help you navigate the complexities of investing and planning for retirement. Leveraging professional organizations, online matching tools like SmartAsset, and personal referrals, are how to find advisors who meet rigorous standards. Before making a final decision, verify their certifications, understand their fee structure, and ask plenty of questions.

Financial Planning Tips

A financial advisor can help you mitigate risk for your portfolio. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
If you want to build your savings up consistently, consider setting up automatic transfers from your checking to your savings accounts. This approach could help you make saving a routine part of your financial life.