Choosing a financial advisor is one of the most important financial decisions you'll make. Whether you're planning for retirement, building wealth, or managing a complex financial situation, the right advisor can make a significant difference in your financial future.
Quick answer: Look for a fee-only, fiduciary advisor with relevant credentials (CFP, CFA), experience serving clients like you, and a clear investment philosophy.
A financial advisor helps you create a plan to achieve your financial goals. This might include:
A good financial advisor doesn't just tell you what to do—they educate you about your options, explain the reasoning behind their recommendations, and help you understand the trade-offs.
The role has changed significantly over the past decade. Today's advisors are less focused on picking individual stocks and more focused on comprehensive financial planning, which research shows has a much bigger impact on your long-term wealth.
This is the single most important distinction when choosing an advisor.
How they're paid: You pay a flat fee, hourly rate, or percentage of assets under management (AUM).
Advantages:
Best for: People who want comprehensive planning, have a significant amount to invest, or want complete transparency.
How they're paid: They earn a commission when you buy or sell investments (typically 3-6% of the transaction).
Disadvantages:
Our recommendation: Fee-only advisors eliminate conflicts of interest and are far better for your long-term financial health.
Not all credentials are equal. Here's what to look for:
This is the most rigorous credential in financial planning. A CFP has proven knowledge across retirement planning, tax strategy, estate planning, and investments.
If the advisor specializes in investment management, a CFA shows deep expertise. It's harder to obtain than a CFP.
Good advisors spend time understanding your situation before making recommendations.
No one can guarantee investment returns. If they claim they can "beat the market," they're misleading you.
A good advisor spends time understanding where you are and where you want to go before recommending anything.
Fee-only advisors can explain their fees in 30 seconds. Commission-based advisors often obscure their fees.
Your portfolio should be tailored to your specific goals, timeline, and risk tolerance.
A good advisor is transparent about fees and focuses on net returns (after fees).
Check FINRA BrokerCheck for any disciplinary history. A pattern of complaints is a warning sign.
Financial planning isn't urgent. Take your time to evaluate and ask questions.
1. How are you compensated?
Listen for: Fee-only, flat fee, or clearly disclosed commissions.
2. Do you have any conflicts of interest I should know about?
Listen for: Honesty about how they make money.
3. What's your minimum investment or client size?
This tells you whether they're right for your situation.
4. Are you a fiduciary 100% of the time?
This is critical. A true fiduciary must always act in your best interest.
5. What are your credentials?
Listen for: CFP, CFA, or ChFC. Ask how long they've been in the industry.
6. What's your investment philosophy?
Listen for: A clear, coherent philosophy. Vague answers suggest unclear thinking.
7. What percentage of your clients are in situations similar to mine?
This tells you if they have relevant experience.
8. Can you explain your process for building my portfolio?
Listen for: A methodical approach starting with your goals and risk tolerance.
9. How often will we meet or communicate?
Listen for: Regular check-ins (quarterly at minimum).
10. What services do you offer beyond investment management?
Listen for: Tax planning, retirement planning, estate planning, insurance review.
11. Can you provide references?
A good advisor should provide 1-3 current client references.
12. What's your fee?
Get proposals from 2-3 advisors and compare.
Visit FINRA BrokerCheck (brokercheck.finra.org)
Check the SEC IAPD (investor.gov)
Ask the advisor for:
A good advisor should provide 1-3 current client references. Ask them:
Most advisors offer a free initial consultation (30 minutes to 1 hour). Use this to:
If you hire them, they'll typically spend 1-2 months gathering information:
Ask trusted friends, family, or colleagues who they work with. Personal referrals are often the best way to find someone good.
Search "fee-only financial advisor Des Moines" or "CFP Des Moines." Read reviews, check their website, and evaluate based on the criteria above.
Don't just work with the first advisor you meet. Get proposals from 2-3 advisors and compare:
