How Do You Know If a Financial Adviser Is Good?

You’ll know you’ve found a good financial adviser if you feel they’re competent, strategic and, most important, trustworthy. A strong relationship with an adviser can last for decades, so you want to choose someone who embodies more than the standard professional requirements.

And no matter what your co-worker says around the coffee machine or what you scrolled past on FinTok, the ultimate decision is up to you. That’s why doing your own homework and due diligence is so important.

Here’s what to look for (and what to avoid) when deciding if a financial adviser is a good fit for you.

How do I know if a financial adviser is qualified?

Credentials matter. Some advisors are bound by the fiduciary standard, which means they are legally required to act in your best interest. Others follow only a “suitability” standard, which allows them to recommend products that may fit your needs but aren’t necessarily the best option for you.

Certified Financial Planner (CFP®) professionals, for example, follow one of the highest codes of ethics in the industry. But you don’t have to take anyone’s word for it: you can verify an advisor’s background online through the CFP Board, FINRA’s BrokerCheck or the SEC’s Investment Adviser Public Disclosure (IAPD) database.

Red flag: If an adviser sidesteps questions about their credentials or seems reluctant for you to check their record, that’s a warning sign.

How should a good adviser talk about fees?

A good adviser is clear and upfront about how they get paid. Most often, fees are charged as a percentage of assets under management, but some advisers charge flat fees, hourly fees or earn commissions from selling products.

The key question is whether you understand what you’re paying and feel you’re getting value in return. If you have $100,000 invested and pay 2% annually, you’re paying $2,000. Are you receiving $2,000 worth of advice and service each year?

Red flag: If the adviser avoids fee discussions or makes the structure sound overly complicated, be cautious.

How important is a personal connection with an adviser?

Very important. This relationship should feel collaborative. A good adviser takes the time to ask questions about your life: your goals, your family, your career and the financial challenges you face.

They should want to understand what matters most to you, whether that’s buying a home, caring for an aging parent, funding a child’s education or preparing for retirement.

Red flag: If the conversation feels more like a product pitch than a dialogue about your life, it’s worth looking elsewhere.

Should a financial adviser have a process?

Yes – and you should ask about it. Managing money is complex, and without a structured process, even capable advisers can make mistakes or overlook details.

For instance, an adviser should guide you through a clear onboarding phase, build a financial plan tailored to your goals, and regularly review that plan with you as life changes.

A process is just as crucial for your investments. Your adviser should be able to explain how they design your portfolio, why they recommend certain strategies and how they’ll adjust things over time.

Red flag: If an adviser seems to “wing it” or can’t clearly explain how they’ll work with you step by step, that’s risky.

Should financial products come before financial planning?

No. A good adviser begins with your plan based on your goals, resources and challenges. Only once the plan is clear should products like investments or insurance enter the picture.

If someone leads with “I’ve got the perfect investment for you” before they’ve even learned about your situation, they’re acting more like a salesperson than an adviser.

Red flag: High-pressure tactics, quick pitches or being asked to make an investment decision before a plan is created.

What should your relationship with a financial adviser be like?

A good adviser makes it clear up front how the relationship will work. That means setting expectations around how often you’ll meet, what those meetings will cover and the best way to communicate between check-ins.

Some clients prefer quarterly in-person meetings, while others like a quick video call or email update. A thoughtful adviser adapts to your preferences while keeping you on track.

Equally important, a good adviser helps manage expectations, including what markets can realistically deliver, how your plan will evolve and what role they’ll play in supporting you through changes in your life.

Red flag: If an adviser is vague about how they’ll stay in touch or makes big promises without a clear plan for following through, that’s a warning sign.

The Bottom Line

A good financial adviser doesn’t just manage money; they help you build a plan for your life. Look for credentials, transparency, a clear process, and a relationship built on listening and trust. Pay attention to red flags, and remember: the right adviser should make you feel confident and understood, not pressured.

At Advance Capital Management, we believe financial planning is about more than numbers. It’s about walking alongside you as your goals evolve.