How To Find and Hire a Fee Only Financial Advisor

In today’s financial landscape, hiring the right advisor to guide your financial future can be a daunting task. There’s a lot of information out there, and not all financial advisors have your best interests at heart. In this post, we’ll go over how to put together a list of fee-only financial advisors and, most importantly, how to interview them to find the right fit for you.

Step 1: Create a List of Fee-Only Financial Advisors

The first step in finding the right advisor is creating a list of potential candidates. But before you start, ask yourself a few key questions:

• Do you want to work with a local advisor?

  If meeting face-to-face is important to you, then you might want to limit your list to local advisors. However, if you’re comfortable working remotely, then you can expand your search nationwide.

• Do you have a specific specialty in mind?
  For instance, are you looking for someone who specializes in retirement planning, college planning, or helping executives with their financial needs?

Identifying a specialty can narrow down your search and help you find an advisor with the right expertise.

Once you have clarity on these questions, you can begin your search. A quick Google search for terms like “fee-only advisor near me” or “retirement planning advisor near me” can give you a starting point. But keep in mind, it’s tough to find one single website that has a complete list of fee-only financial advisors.

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Step 2: Where to Find Fee-Only Advisors

While there’s no one-stop website to find every fee-only advisor, here are some trusted resources:

• Certified Financial Planner (CFP) Board
  The CFP designation is considered the gold standard in personal financial planning. By visiting the CFP Board’s website, you can search for advisors by location and specialty. However, keep in mind that not all CFPs are fee-only, so further research is required.

• NAPFA (National Association of Personal Financial Advisors)
  NAPFA is an organization of fee-only advisors, but it’s important to note that not all fee-only advisors are members due to the high membership costs. Still, it’s a good place to start.

• XY Planning Network & Garrett Planning Network
  These networks are dedicated to fee-only financial advisors, and they have searchable directories that can help you find the right fit.

Once you have your list, it’s time to narrow it down and ensure they’re truly fiduciaries.

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Step 3: Verify They Are True Fiduciaries

Not all advisors who claim to be fiduciaries are actually fiduciaries. Here’s how you can ensure the advisors on your list are meeting their obligations:

• Check Their Website
  Look for any claims that they are a fee-only advisor. Also, see if they offer financial planning services, or if they specialize in wealth management (which might come with extra fees).

• Use BrokerCheck
  Visit BrokerCheck (brokercheck.finra.org) to check if your advisor has any history as a stockbroker. If they do, they may not be a true fiduciary, since stockbrokers are held to a different standard.

• Review Their ADV Form on AdvisorInfo
  Every registered investment advisor (RIA) must file an ADV form with the SEC. This form will tell you about their background, services, and any conflicts of interest. If an advisor has a broker-dealer or insurance agent registration, they’re likely not a fee-only fiduciary, and you might want to move on.

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Step 4: Interviewing Potential Advisors

Once you’ve narrowed your list down to a few fee-only fiduciaries, it’s time to interview them. This is where you can really dig deep into what they offer and how they work. Here are the 10 Questions you should ask every potential advisor during your interview:

• Are you a fiduciary, and will you sign a fiduciary oath?
  A true fiduciary will sign an oath to always act in your best interest.

• Do you have any disclosures or complaints?
  Review their background for any complaints or issues with past clients.

• Do you have any certifications or designations?
  Certifications like Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA) indicate that an advisor is serious about their career.

• What services do you offer, and do you specialize in any area?
  Find out if they specialize in retirement planning, tax planning, or other areas that align with your needs.

• How are you compensated, and what is your fee structure?
  They should be transparent about their fee structure, whether it’s based on assets under management (AUM) or flat fees for financial planning.

• What other costs will I incur?
  Find out if there are additional fees for investment management or mutual fund expenses.

• What is your investment philosophy?
  Understand whether they use a passive or active investment strategy, and ask about past performance (keeping in mind that past performance is not indicative of future results).

• Where do you keep client assets, and who holds the money?
  It’s essential to know that your money is held with a reputable third-party custodian, not with the advisor directly.

• How often will we communicate, and how do you prefer to communicate?
  Establish how often you’ll meet or talk to ensure you’re on the same page with communication expectations.

• How long have your longest clients been with you, and how many clients do you manage?
  This will give you insight into their experience and the number of clients they manage. A reasonable client load ensures better service.

Taking the Next Step

Finding the right financial advisor is a long-term decision that can significantly impact your financial future. By taking the time to follow these steps—researching, verifying their credentials, and interviewing potential candidates—you’ll be in a strong position to choose a trusted advisor who is genuinely looking out for your best interests.

By taking the time to carefully select your advisor, you’ll set yourself up for financial success and peace of mind in the years to come.

If you have a question or topic that you’d like to have considered for a future episode/blog post, you can request it by going to www.retirewithryan.com and clicking on ask a question. 

As always, have a great day, a better week, and I look forward to talking with you on the next blog post, podcast, YouTube video, or wherever we have the pleasure of connecting!

Written by Ryan Morrissey

Founder & CEO of Morrissey Wealth Management

Host of the Retire with Ryan Podcast