How to choose a financial advisor
Your style and your needs should drive your decision in choosing a financial advisor. Follow these steps to help find the one who's a good fit for you.
Choosing a financial advisor
Each stage of life is an opportunity for a new chapter you get to write. Whatever your next chapter looks like, we’re here to back you up with actionable plans and personalized strategies unique to your financial story.
Maybe you're thinking about planning for a fulfilling retirement, preparing for education costs or opening a business.
You don't have to go it alone. Partnering with one of our financial advisors can give you the support you need to achieve your financial goals.
You can learn more about the benefits of working with a financial advisor. Here, we’ll take a look at the different types of financial advisors first, then go into the best way to find one who’s the right fit for you.
Understanding the role of the financial advisor
Before you begin the process of selecting a financial advisor, it's important to know what they’re offering and if that matches your style.
Types of financial advisors
You can categorize financial advisors in a few different ways. First, you might group them by how they offer their services. Let's take a closer look.
- "Robo-advisors" – Some financial services are provided entirely online, sometimes referred to as robo-investing. In this case, you don't meet with an in-person advisor. Instead, you get all your advice online. After you input your information, computer algorithms give you feedback and answer your questions. This type of service is less personalized, and therefore less expensive. However, there may be account minimums or additional fees for various activities.
- Online financial planners – This option provides similar services as robo-advisors, but you’ll also have access to a professional advisor. Keep in mind that the advisor may not always be the same person, so it can be difficult to build a relationship and have someone who truly understands you and your goals.
- Traditional financial advisors – The advantage of a consistent financial advisor is the opportunity for a long-lasting relationship and a partner to help you stay on track toward long-term goals. Your dedicated financial advisor should take the time to get to know you, including who and what matters most to you. With this deep, consistent knowledge and understanding, you can make the right decisions together as a team.
You can also categorize financial advisors by how they charge for their services. They might be commission-based, fee-based, fee-only or a combination of approaches. Always feel free to ask questions of a potential financial advisor about how they’re compensated for their services. They should be willing to answer your questions and make you feel comfortable and confident working with them.
Services you may need
Another consideration when looking for a financial advisor is what services you may need. Some of the information you might want to ask for includes:
- A complete list of the services they offer. These might include financial planning, individual investing, trust services and insurance options, among others
- Information about how they work with clients. Do they only interact online or do they meet with you in person? Are they full-service or do they offer limited services?
- A complete list of the investment products they offer
- Tools and technology, like online access and savings calculators
- Financial education resources, including up-to-date market guidance and investment research
- Clear, easy-to-find information on how to meet with or contact them. For instance, their hours, locations, customer service contacts, websites and social media platforms
Your guide on how to find a financial advisor
Building a financial future can feel overwhelming. The sea of savings vehicles and investment options is vast, and conflicting advice can make it difficult to know if you're making the right decision.
A financial advisor can cut through the confusion so you can more clearly see the path to your savings goals. But how do you find an advisor that works for you?
The trick is to understand your options, identify the services you need, research prospective candidates, and match with a professional you trust. This guide will teach you about fees, functions, best qualities, services and how to find a reputable professional so you can plan with confidence for years to come.
Edward Jones can help you choose a financial advisor who fits your needs.
What services do financial advisors offer?
Financial advisors can provide services for every area of your financial life, from investing and saving to insurance policy selection, estate considerations, tax-sensitive investing and retirement. But financial advisors go beyond just providing financial solutions. They personalize a wealth strategy to make those solutions as impactful for you as possible.
What to look for when picking a financial advisor
To get the full benefits of working with a financial advisor, look for these three important factors when choosing:
- They offer the services you need when you need them
A trusted financial advisor makes data-driven insights during all stages of life as you move through them, suggesting the appropriate financial services, like debt management, higher education and housing savings, or retirement planning. If you’re unsure of your goals or the services you need, you can contact a financial advisor now to pinpoint them. - They create a safe space for your finances and risk tolerance
A dedicated financial advisor can provide 1:1 service that prioritizes your financial well-being. Whether you’re planning for retirement, saving for your child's education, or planning your estate, your financial advisor can create a personalized long-term strategy while respecting your risk tolerance. - They provide the products your portfolio needs
The right financial advisor can recommend a specific financial products for wherever you’re at in your financial journey, which may include insurance, annuities or a variety of other investment products.
Choosing a financial advisor that's right for you
Many investors research their options online or talk with family and friends when they're looking for a financial advisor. Both of these options can provide great information to help narrow your search.
If you find candidates you're interested in pursuing, consider vetting them and their firms.
What to ask for during your vetting process
A good place to start is the Canadian Investment Regulatory Organization (CIRO) who regulates all Canadian investment dealers and their approved employees and agents. The CIRO Advisor Report available on the CIRO website will help you find an Advisor's background, qualifications and disciplinary information for registered Advisors. The CIRO Advisor Report displays industry courses that an advisor has passed in connection with a CIRO approval. This report only provides information about individuals who are currently approved with a CIRO-regulated firm. If you're looking for disciplinary information about an individual who's no longer working for a CIRO-regulated firm click here.
Know your advisor
Advisors must meet educational standards to receive CIRO approval to work in specific positions at their firms. The Advisor Report provides information about an individual's educational background including industry courses that have been completed to attain certain proficiency standards.
Advisors may have other certifications or designations that may not be in this database.
Get to know your candidates
If you have a few financial advisors to narrow down further, you may want to set up interviews to talk with them individually and get to know their teams and organizations. These 10 important questions to ask a financial advisor can help you start the conversation.
The right candidate should take the time to understand your and your family's situation and goals. And, remember, it's not unreasonable to ask them to draw up a preliminary plan for how they would help you before committing to them.
Think about the long term
For a financial advisor to be effective, they need to know personal things about your financial life. So, on top of making sure they are knowledgeable, trustworthy and experienced, it's important to feel like you can connect with them. You'll want to find someone you can communicate with, easily and candidly.
Do they seem like a partner who will keep you at the center of every decision? Will they value their relationship with you? Do you feel like they really listen to you? Developing a close and comfortable working relationship together can help the two of you to realize the possibilities of your future, together.
While it might take some research and legwork to find the right financial advisor, it’s well worth it. Having a financial professional by your side who understands your needs and goals for the future can make your journey much easier, more enjoyable and more impactful.
Match with a financial advisor near you
Edward Jones financial advisors offer clear, thoughtful guidance tailored to help you achieve the future you want. Our personalized, long-term approach is centered on your goals so you can move forward with confidence, supported every step of the way.
Take our 3-minute quiz to be instantly matched with a short list of financial advisors with the skills and experience you need. Review your matches and set up a free first meeting with the ones who seem like a good fit.
FAQs on choosing a financial advisor
What are the pros and cons of a financial advisor?
Pros of using a financial advisor can include added knowledge, access to financial tools and education, and support for building long-term financial discipline and planning habits. Cons can include the overwhelming process of picking an advisor, fees, varying levels of experience and quality, and potential conflicts of interest.
Where else can I find a financial advisor?
You can find a financial advisor through personal recommendations, online platforms or financial institutions like your bank.
What is the best type of financial advisor to have?
The best type of financial advisor depends on your goals and situation. However, the most effective professionals often nurture a long-term relationship with you, where every strategic decision is collaborative and data-driven.
How can I determine if a financial advisor is right for me?
Understanding the types of financial advisors you can use, along with their different services and tools, can help you decide if using one is necessary. This financial insight report can also help determine if a financial advisor is right for you.
How much money should I have before getting a financial advisor?
While there is no universal amount of money you should have ready to invest before getting a financial advisor, fees and services can vary across financial institutions and professionals. You may need $0 to invest, or you may see minimums of $5,000 or more to access certain services and accounts.
What is a normal fee for a financial advisor?
There isn’t one normal financial advisor fee, as portfolios and investments can vary drastically across clients.
What are common fee structures?
Common fee structures can have commission, fee, or fee-only based payment structures. Commissions require you to pay each time a transaction takes place. Fee structures typically mean you’ll make an annual payment equal to a percentage of the assets you have in management, while fee-only structures mean you’ll pay a set hourly fee for services.
Learn more about what a financial advisor can do for you
Still not sure if you need a financial advisor? This free report can help you decide.