How to Choose a Financial Advisor in 2023

There are a ton of financial advisory bodies out there, so finding one won’t be a problem. The problem one might tend to face is how to choose a financial advisor. Imagine trying to buy ice cream, except you’ve come out with a fixed mind on what to buy, numerous choices might overwhelm one, the vanilla or the banana?

At the end of the day, you’ll have to make a single choice and live with it, which is also the case for a financial advisor. You just have to know how to choose a financial advisor and find one you’re comfortable with and stick to.

Finding a financial advisor can be extremely hard, which is why one needs to know who a financial advisor is and how to choose a financial advisor and also why you need to choose one. To help you make smart financial moves that would help your life in the long run.

Table of contents

Do You Need a Financial Advisor?

The truth is, not everyone is willing and capable of hiring a financial advisor.

Are you paid wages in your current job and do you wish to start saving and make the right financial moves? Well, the truth is not a single financial advisory service would be willing to work with you, and that is the reality.

They plan to make money too; from the clients, they advise on how to make more money. If you make only a meagre wage, you and the financial adviser both can’t work together, considering what you’re bringing to the table and what they’ll be charging as their fees. Because of what you’ll bring to the table and what they’ll take away from it in fees, neither you nor the financial advisor can reach a compromise, because they’ll be losing serving you and you’ll be losing your little savings.

So, how do know when it is time? How do choose a financial advisor in 2023? Nicole Rutledge Regilio, a certified financial planner in Orlando, Florida gave a good rule to keep by thumb: “Once someone is to the point that they have a stable and steady income and can save at least 20% of their annual income, it might be time to consider a financial advisor,”.

However, should you not meet up with this rule, meaning you can’t spare 20% of your finances, financial advisory firms and services would still be willing to assist.

Much like fashion and many other things, many websites can recommend financial planners who work with middle-class investors, websites such as the and

One of the cheap and accessible options for new investors is Robo services. Robo advisors are considered to be a splendid option for potential new investors. These services usually charge a meager fee that averages only 0.25% annually (so that’s $25 per $10,000 invested) and some very low account minimums, these services are a cost-effective way to start investing.

Another option is online financial advisors. They provide integration of robo advice while having a level of access to human advisors. A lot of these robo platforms now offer access to humans, but they usually require you to invest a substantial amount or demand a higher fee to secure access to unlock such offers and or services.

To put into context, securing access to a financial advisory house such as Betterment’s certified financial planners, you’d need to invest at least $100,000 and pay a higher annual fee of 0.4% as compared to 0.25%. However, advisors would advise that if you have $100,000 to invest, you might just want to just get your financial advisor you can meet face-to-face, although these in-person advisors can cost a yearly fee of up to 1% or even slightly higher averagely.

Should you decide you want the in-person experience, there are still possible options. Financial advisors appear in several forms, ranging from investment advisors to brokers and financial planners.

Generally, financial planners are those you’d go to if you want help with a complete and absolute financial plan. Planners have a way of helping you strategize a way to manage your financial dealings.

While investment advisors and brokers tend to be more adamant on only the side of the investment. Investment advisors focus more on directing the investor on which investment to make and can even take up the daily management of these investments. While brokers are the go-to guys for individuals that just want help with someone to buy or sell an investment and do not require deep strategic plans.

Decide What Services You Need

Asides from the money in your possession and what you wish to invest it in, a major factor that should be considered knows the exact service you need from the advisor this would help you to know how to choose a financial advisor.

If for instance, your target is to plan for your retirement, the kind of financial advisor you should choose shouldn’t be as the one planning for the schooling of his children, your plan might be to find a retirement financial advisor.

There are several categories in the financial advice industry. Below are some categories you might consider for How to choose a financial advisor in 2023:

-Retirement planning specialists (RPS); help you prepare and strategize for retirement.

-Wealth planners; This group of planners specializes in clients with higher net worth’s, at least $1 million in assets and can sometimes shoot upwards to $20 million.

-Estate planners help prepare your estate for your beneficiaries.

-Certified divorce financial analysts (CDFA) specialize in helping clients through and after divorce.

-Certified financial transitionists (CeFT) help clients plan through life-changing conditions, such as selling a business or the loss of a spouse.

Select Which Type of Advisor You Want

Considering all these, there’s a pool of diverse advisors you can decide to work with, ranging from the old or traditional financial advisors you can have a physical meeting with, to robo or virtual advisors who offer their services online.

The most suitable kind of advisor as Regilio most notably said, “Depends on the complexity of their situation and whether or not they have a desire to have a more personal relationship with their advisor,”

Before you engage your financial advisors, ponder on the kind of relationship, both in terms of the service as well as the interactions that you would want to have with the investor, as each of them would have completely different approaches.

Traditional Financial Advisors

Traditional financial advisors have more interest and are the most opportune in building a well-founded personal relationship.

Also, traditional advisors normally have at their disposal a highly intellectually diverse team of financial specialists – such as restructuring specialists and debt consolidation. Naturally, different advisors would have access to the different catalogs of services and professionals; one should keep in mind all this dynamicity.

However, this would come at a heavy cost. Human/traditional advisors are by default the most costly type of advisor, Regilio says, but “the advice you receive should be more specific to you and your goals.”

Robo Advisors

Potentially the least-costly option out there, these kinds of advisors, the robo advisors are most likely the simplest types of financial advisor one could work with, given that their access is almost a 24/7 access and coupled with the low or no account minimums. These Robos services try to keep emotions and sentiments out of investing and they definitively try to keep the investor on their financial plans.

But due to the limitations of these platforms to contextualize situations and see the better picture, they are limited to certain scenarios, thus making their decisions not always favourable for the investor. Over time, it can even be detrimental for the investor.

Amongst the downsides of these services is that your needs and concerns won’t be attended to by a single individual, and at some points, connecting with an individual might be impossible to do. This is why they’re used by professional investors, however, as someone just starting; these platforms would give a good runway to understand a bit of the financial world.

Hybrid Advisors

Hybrid advisors are dedicated to tapping the positivity of both worlds; having accessibility to humans who would define the murky complexities of life and an automated low-cost investing platform.

These solutions are good solutions for advanced investors who don’t require the direct services of the traditional financial advisor, and robo advisors won’t function to his expectations.

The limitations to these solutions are that at some point, conditions might work against themselves, and this could invariably lead to the discoordination of the financial plan.

Know the Difference between a Fiduciary Financial Advisor and Nonfiduciary

There are two sets of compliances in the financial industry followed by advisors called the suitability standard or the fiduciary standard. Knowing the two help in deciding on how to choose a financial advisor in 2023.

The fiduciary standard is when your financial advisor is bound legally to act in a way that favours you best. For fiduciary advisors, their clients’ interests become primary and theirs secondary.

They don’t accept commissions on any investment they recommend as they only accept a fee for their services. A fiduciary advisor is paid a quarterly fee that’s calculated as a percentage based on the assets they’re managing.

The suitability standard on the other hand is only legally required to make sure the investments are suitable for you and not necessarily the best. The suitability standard advisor works on commission, so their advice could position you to profit them more than yourself.

To be on the safer side, one should look at a good credential, which is known as the certified financial planner, CFP. The CFPs are advisors that are better educated as well as have tremendous experience and the requirements to better serve their client’s financial planning needs.

Determine What You Can Afford

This stands with all life matters, choose whatever goods and services that you know you can afford. Except the financial advisor is your diligent child, this service will likely not be free and will come with its cost.

So usually you don’t just limit your questioning mind to what type of financial advisor you need but also consider the type of financial advisor your money will allow you to afford.

Ask for Referrals from Friends or Net

One of the easiest and smartest ways to find a good advisor is to, first of all, ask friends for their certified financial planner – or any advisor – to save one’s self from unnecessary stress.

Also, a good way to go about it is to Google the recommendations gotten from them.

Check the Advisor’s Credentials

Much like everything in life, the need to verify the legitimacy of credentials is highly important, and when it comes to financial dealings, one ought to be extra careful. One could verify his/her advisor’s credentials on BrokerCheck or AdviserInfo

Interview Multiple Advisors

Also, consult multiple firms, sample as many choices as you can and make a well-guided decision regarding your financial dealings.


To choose a financial advisor can be easy. As long as you consider the question, do you need a financial advisor in the first place, what services do you need and what you can afford? The rest is easy. Just follow the steps outlined in this article, and you will find the right financial advisor.



Leave a Reply
You May Also Like