The Process of Hiring a Financial Adviser Made Simple

Hiring a financial adviser can feel like a daunting task. After all, you’re entrusting someone with your financial future.

But the process doesn’t have to be overwhelming. By breaking it down into clear steps, you can confidently find and hire the right adviser for your needs – and set yourself up for a smooth working relationship.

This blog covers 7 simple steps that summarize how the process of hiring a financial adviser works, from start to finish.

Key Takeaways:

• Before beginning your adviser search, know what your goals are and why you are seeking out their services.
• Use personal referrals or trusted online searches to create a short-list of advisers that align with the goals you have and then narrow down your list through introduction meetings and additional research.
• Use a checklist to compare advisers and take your time coming to a decision on which adviser you feel most confident with.

Step 1: Understand Your ‘Why’

Before you start searching for an adviser, it’s important to know why you’re seeking one. Are you planning for retirement? Navigating a major life change like a divorce or inheritance? Or do you simply want to ensure your money is working as hard as it can?

Not all advisers are the same, so you want to find one that aligns with your needs. Some focus on comprehensive financial planning, while others emphasize investments, tax strategies, or estate planning. Knowing what you want helps narrow your search.

If you’re not sure what your ‘why’ is, read our blog on How to Know If You’re Ready to Talk to a Financial Adviser.

Step 2: Research and Referrals

Once you know your goals, it’s time to start looking. Here are a couple of good places to begin:

• Referrals: Ask friends, family, or colleagues for recommendations. Bonus points if you can ask people that are in similar financial situations or have similar goals to you. Ask them about their experience ─ the good and the not-so-good.
• Online Searches: AI tools have made it easier to search for credible recommendations for services such as financial advisers. Whether you search using Google, Claude, ChatGPT or a similar platform, results tend to draw on human-credibility signals such as Google Business reviews, third-party awards or recognitions, or authority contributions in the media. A search like "fiduciary financial advisers near me" is a solid starting point as long as you treat it as one input among several.
• Notable Rankings: sources like CNBC, Barron’s, or Forbes publish annual rankings of advisory firms based on their own specific criteria. Looking at some of these lists could be a great resource for finding some of the top firms in the country.

When you receive any recommendations, don’t forget to look for credentials like CFP® (Certified Financial Planner) or CFA (Chartered Financial Analyst), which indicate rigorous training and a commitment to ethical standards.

Step 3: Narrow Down Your Options

Once you have a list of vetted candidates, start digging deeper. Visit their websites, read their client reviews and check their regulatory records through FINRA’s BrokerCheck or the SEC’s Investment Adviser Public Disclosure. These tools let you confirm credentials and spot any red flags, like past client complaints or legal issues.

At this stage, pay attention to:

• Services Offered: Do they provide the help you need?
• Fee Structure: Are they fee-only (earning money solely from client fees) or commission-based (earning from selling products)? Fee-only advisers typically have fewer conflicts of interest.
• Fiduciary Duty: Look for advisers who operate as fiduciaries, meaning they are legally obligated to act in your best interest, not their own.
• Philosophy: Do their investment or planning approaches align with your values and goals?

Step 4: Set Up Initial Consultations

Some advisers offer no-obligation initial consultations, either in person or virtually. This is your chance to get to know them and see if the relationship feels like a good fit. Once you feel confident in your short-list of possible advisers, schedule a few of these consultations.

Come prepared with questions, such as:

• What is your approach to financial planning?
• Who are your typical clients?
• How do you charge for your services, and what can I expect to pay annually?
• How often will we meet, and what’s the best way to reach you?
• Can you provide examples of how you’ve helped someone like me?

Trust your instincts during this meeting. The adviser should listen carefully, explain things clearly, and make you feel comfortable. If you feel rushed, confused or pressured, keep looking.

Step 5: Compare Options and Make Your Decision

After meeting with a few advisers, take some time to compare them. Ask yourself:

• Who best understood my financial goals?
• Which adviser’s communication style felt the most natural?
• Whose fee structure aligns with my budget and expectations?

Remember there is no need to rush this step. If there is an adviser that is giving you a sense of urgency or putting a deadline on a decision, they probably aren’t the adviser for you.

Your adviser will (hopefully) play a key role in your financial planning for a very long time, so it’s important to you make that decision on your own or with your partner, and that you don’t feel any outside pressure.

Step 6: Start the Onboarding Process

Once you’ve chosen an adviser, the onboarding process begins. Here’s what to expect:

• Paperwork: You’ll likely sign an engagement letter outlining the scope of their services, fees and responsibilities. They may also request access to your financial documents – including tax returns, account statements and insurance policies – to create a clear picture of your finances.
• Plan and Portfolio Creation: After gathering all the necessary information, your adviser will develop a personalized financial plan and investment strategy tailored to your goals. This step includes setting up your accounts based on your agreed-upon strategy and, if needed, reallocating your existing assets to align with the new plan.

The adviser will guide you through this process, explaining any changes and ensuring your portfolio is structured to meet your objectives. They will also handle the logistics of moving funds or transferring accounts to streamline the transition.

Read more our blog: Help Prepare Yourself for Your First Meeting with Your Adviser.

Step 7: Build a Long-Term Relationship

Hiring a financial adviser isn’t the finish line. It’s the start of an ongoing relationship. Here’s how to make the most of it:

• Stay Engaged: Regular check-ins (usually annual or quarterly) ensure your plan stays on track.
• Communicate Changes: Life happens ─marriages, new jobs, health issues. Let your adviser know about any big changes so they can adjust your plan.
• Ask Questions: Don’t hesitate to reach out if you don’t understand something or need clarification. A good adviser welcomes your questions.

The Bottom Line

A great adviser isn’t there to just run the numbers. They’re a partner who helps you navigate life’s twists and turns while staying focused on your goals. Take your time, ask questions and trust the process. By understanding your needs, doing your research and taking the time to find the right fit, you can feel confident about the person helping guide your financial journey.

Use our “Choosing a Financial Adviser” checklist as a resource to help you along your search. And if you’d like to add Advance Capital Management to your search process, schedule a free consultation with one of our advisers here.