Finding a Financial Advisor – For the Middle Class

Finding a financial advisor is one of the best actions you can take to move your finances to the next level. This is true because we do not really know the best actions to take sometimes because we do not have the best knowledge.

Finding a Financial Advisor
Finding a Financial Advisor

It will take an expert, who has studied along this path to get the best information, and advice financially. The importance of getting a financial advisor cannot be over-emphasized. Who actually needs a financial advisor?

Who Needs a Financial Advisor?

You should get a financial advisor if;

You Have Lack of Experience

Financial planning can be complicated, and advisors can assist you in determining the most cost-effective way to acquire an investment. By working with a professional, young people or people who have never handled money before can get a baseline for their finances, and new investors can improve their financial literacy while taking on less risk.

Advisors can also assist them in understanding key terms and strategies for dealing with market fluctuations.

You Are Experiencing a Life Changing Event

Some of these events include;

  • Relationships such as Marriage, cohabitation, or divorce.
  • Ownership of real estate. Purchasing and selling a primary residence, a vacation home, or an investment property.
  • Medical situations. Normal aging requirements, a new chronic medical diagnosis, or a sudden disability.
  • Concerns about the elderly. Taking care of parents or receiving an inheritance.
  • The birth or adoption of a new baby.
  • Employment. Major advancement, relocation, or layoff.
  • Entrepreneurship. Starting a new business, purchasing a franchise, or taking over a parent’s business.

When you Have Losses You Cannot Recover

Investment mistakes can be overcome by holding tight and waiting for the market to recover, but it is critical to align investments in order to minimize taxes and avoid penalties. Financial professionals can assist in ensuring that assets are placed in the correct account and tapped in the most efficient manner.

When you Need Sophisticated and Complex Planning

Sometimes, you need the best financial advise to take on sophisticated planning.  With the aid of a financial advisor, you can be sure that you have made the best decisions.

Why Should You Work With a Financial Advisor?

Financial advisors provide advice and guidance to clients regarding investments, insurance and other financial planning matters. They also help clients set financial goals and make plans to achieve those goals, prevent emotionally charged decisions to buy or sell investments, and provide more than just investment advice.

Financial advisors can assist clients with retirement planning, tax management, and navigating life changes such as marriage or the birth of a child. It is important to decide which services you need and let this guide your search.

How to Find a Financial Advisor

Now that we know some of the major reasons why we all should get financial advisors, how do we go about it? How can you get a financial advisor if you do not have lots of money to pay?

Before searching for a financial advisor, you must understand the following elements;

  • How much will it cost you to hire a financial advisor?
  • How do the fees for financial advice work?
  • Where to look for a local financial advisor.
  • Things to Consider when looking for a local financial advisor.
  • What Type of Questions Should You Ask?
  • How do you avoid being duped?

By considering these factors, you will almost never go wrong with your search.

How Much Will it Cost You to Hire a Financial Advisor?

Fees for financial advisors are typically based on the amount of money you have with their firm, known as assets under management, or AUM. The industry average is around 1% of AUM per year, but some firms can go as high as 2%.  So, if you have $250,000 and a 1% annual fee, you can expect to pay $625 every three months.

How do the Fees for Financial Advice Work?

Fee-only advisors charge according to assets, while fee-based advisors charge both a fee and commissions. Commission based advisors charge commissions based on their investment sales. Depending on where you live and the scope of the work, fees can range from $100 to $400 an hour. Most certified financial planners requires minimum assets of at least $50,000 before working with you.

Find a Financial Advisor Near Me

There are lots of places to look for financial advisors. The list below contains most of them;

Finding a Financial Advisor2
Finding a Financial Advisor2

Where to Find a Financial Advisor

Here are the best ways and resources to find financial advisors near you;

  • Search engines can be used if you know you want someone to help with financial planning. Include “fiduciary” in your search terms to find fee based financial advisors.
  • Find advisors in your area by using an online advisor search and learning more about their specialties and experience.
  • Request recommendations from friends, family, and coworkers.
  • The Garrett Planning Network provides a map of the United States that can be used to locate financial advisors who serve the middle class.
  • The National Association of Personal Financial Advisors gives a website to find a financial advisor near you.
  • The XY Planning Network is geared toward advisors who work with Generations X and Y.
  • The CFP Board can assist you in locating local advisors who hold the CFP designation.
  • Robo advisors could be a low-cost option.

How do I Find a Financial Advisor – What to Consider 

Here are some major factors  you should consider when searching for a financial advisor;

  • The size of their firm.
  • Their credentials.
  • Expertise.
  • Office type depending on how you prefer to meet with your advisor.

What Type of Questions Should You Ask?

When shopping for financial advisors, it is important to understand how they get paid, what their credentials are, if they are a fiduciary, what happens if they change firms, how they measure their performance, and if their annual bonus depends on them doing something else.

All these factors should drive you on the types of questions you should ask.

How do you Avoid Being Duped?

Examine the advisor’s licenses and history on BrokerCheck, the Financial Industry Regulatory Authority’s advisor database, and the Securities and Exchange Commission’s Investment Adviser Public Disclosure database. Also request a copy of their Form ADV.

Set expectations with the advisor before beginning the relationship, and inquire about how they can assist you in reaching your objectives. Tell the advisor what you earn and your overall financial health up front.

The less time you spend looking for a financial advisor, the sooner you can start making your money work for you.


If you have searched with the query “How to Find a Financial Advisor You Can Trust”, some additional tips you can use are asking family members as well as colleagues for recommendations.

You can ask the company that manages your retirement accounts to recommend a financial advisor for your situation, or you may search the National Association of Personal Financial Advisors’ database (NAPFA).

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