How to Choose a Wealth Advisor

Choosing a wealth advisor comes down to four things, in order: the standard they're held to (are they a fiduciary, legally required to act in your interest, or a broker held only to a "suitability" standard — a distinction that shapes every recommendation you'll receive), how they're paid (fee-only, fee-based, or commission — because compensation drives incentives), their fit for your situation (an advisor who serves clients like you, at your level of complexity, with the services you actually need), and the relationship and trust (this is a long-term relationship touching your most private matters, so competence and character both count). Get those right and the rest follows; get them wrong and even a credentialed advisor may not serve you well. **

Start with the fiduciary question, because it's foundational. A fiduciary advisor is legally obligated to act in your best interest; others may be held only to a lower standard that permits recommending suitable-but-not-optimal products that pay them more. This single distinction affects the trustworthiness of every recommendation, which is why "Are you a fiduciary, at all times, in writing?" is the first question to ask. It doesn't mean non-fiduciaries are dishonest — many serve clients well — but you deserve to know which standard governs the advice you're paying for. **

Understand how they're paid. Compensation shapes incentives, so understand the model completely: fee-only advisors are paid solely by you (a percentage of assets, a flat fee, or hourly) with no product commissions; fee-based blend fees and commissions; commission-based are paid by the products they sell. None is automatically disqualifying, but each carries different incentives you should understand — a commission model may incentivize product sales, an assets-under-management fee aligns the advisor with growing your assets but is a recurring cost. Ask exactly how they're compensated, including any compensation from third parties, and get it in writing.

Match the advisor to your complexity, and verify. A HNW or UHNW situation — concentrated stock, business ownership, multi-state or international matters, estate and tax complexity, alternative investments — needs an advisor equipped for it, not a generalist. Ask about their typical client (are you their norm or an outlier), their credentials (CFP, CFA, CPA, and what they mean), their services (comprehensive planning vs. investment management only), and who actually handles your account. Verify credentials and disciplinary history through the appropriate regulatory records (FINRA BrokerCheck, the SEC's IAPD, and state boards for CPAs and attorneys). ** And call references. The advisor who welcomes all of this is showing you their character; evasiveness on any of it is itself an answer.

*Educational only; not financial, investment, tax, or legal advice. Consult a qualified professional about your situation.*