6 Things To Look For When Choosing a Financial Advisor

Nov 13, 2025

Choosing a financial advisor is one of the most important financial decisions you’ll ever make. The right advisor should be someone you trust, connect with, and feel confident in guiding your financial future.

The financial advisory profession is growing quickly, with nearly 15,870 registered investment advisors serving 68.4 million clients in 2024.^_i With so many professionals to choose from, it’s no surprise that almost 97% of Americans plan to interview multiple advisors and 96% will research online before making a decision.^_ii

Credentials and resources matter, of course, but just as important are values, communication, and the fit between you and your advisor.

How to choose a financial advisor

If you plan to start your search online, you aren’t alone. To decide if an advisor is the right fit, 83% of surveyed prospects choose to research the advisor’s reputation by looking for online reviews and awards, followed by an introductory call with the advisor (73%) and visiting the advisor’s website (72%).^_iii There is nothing wrong with that approach! The key is to know what to look for as you do your research.

Here are six things to keep in mind as you evaluate your options:

1. Look for someone who listens first

Great advice starts with understanding your goals, values, and concerns. A good advisor will spend more time asking thoughtful questions than talking during your first meeting. You should walk away feeling heard, not pitched.

This is even more important in today’s digital world. One third of survey respondents said an advisor’s location is not a factor, as they prefer to meet exclusively online.^_ivIf you fall into that category, be sure to consider not only your conversations with them but also their online responsiveness.

2. Experience and credentials matter, but context matters more

Certifications such as CFP®, CFA, or CPA demonstrate specialized training and a commitment to the field. But what really counts is how an advisor applies that expertise to your unique circumstances. Equally important is understanding what type of advisor they are — fiduciary, RIA, wealth manager, or investment manager — so you know the scope of services and responsibilities they bring to the table.

3. Alignment with your goals, not just your investments

Your advisor should help you align your money with the life you want. That means looking at your complete financial picture, including retirement, tax strategies, college funding, estate planning, and even charitable giving. McKinsey’s Affluent and High-Net-Worth Consumer Survey of U.S. investors indicates that clients increasingly seek more holistic advice as they age, and their needs become more complex across the full spectrum of planning services and balance sheet and investment products. In fact, the share of investors seeking more holistic advice grew from 29 percent in 2018 to 52 percent in 2023.^_v

4. Transparency around fees

Most people want to understand two things before reaching out to an advisor for the first time: their specializations (64%) and their fees (62%).^_viYou should always know how your advisor is compensated and what you’re paying. Clear, straightforward answers about fees foster trust and lay the groundwork for a lasting relationship.

If those two questions are immediately answered by a quick skim of their brochure or website, it is worth a phone call to quickly clarify. The answers to your questions should be straightforward to provide. If they aren’t, and you can’t find clarity, you may want to move on.

5. Resources and team support

Even if you value personal attention, it helps when your advisor has the backing of a strong team and firm. A robust platform provides research, planning tools, and investment options, while your advisor provides the personal connection and customized guidance.

Interestingly, most respondents are generally comfortable with advisors using artificial intelligence (AI) tools to streamline admin tasks and somewhat comfortable with AI to help generate personalized financial plans. They tended to be uncomfortable with investment decisions outsourced to AI.^_vii

Almost 80% of affluent households surveyed indicate that they would rather pay a premium of 50 basis points or more for human advice than use a customized digital advice service priced at about ten basis points. 29% say they are willing to pay a premium of 100 basis points or more. Furthermore, among investors with more than $1 million in investable assets, the share willing to pay a premium of 100 basis points or more grew by 50 percent from 2021 to 2023. ^_viii

6. Comfort and trust are non-negotiable

Ultimately, your relationship with your future financial advisor should be characterized by comfort, respect, and support. Trust is the deciding factor. 60% of Americans say trust is the most important factor when choosing an advisor.^_ix

If you don’t feel heard or understood in your first conversations, that’s a red flag, and you may want to reconsider your options.

Unsure what all of these terms and credentials even mean? Download our PDF guide for more details.

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