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By
Miranda Marquit
Miranda Marquit
Contributor
Miranda Marquit, MBA, is a freelance contributor to Newsweek’s personal finance team. She has an M.A. in journalism from Syracuse University and has been writing and podcasting about money since 2006. With a passion for financial wellness, Miranda has written thousands of articles about money management and beginning investing. Miranda is based in Idaho, where she enjoys spending time in the outdoors and volunteering with local nonprofits.
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Reviewed By
Robert Thorpe
Robert Thorpe
Senior Editor
Robert is a senior editor at Newsweek, specializing in a range of personal finance topics, including credit cards, loans and banking. Prior to Newsweek, he worked at Bankrate as the lead editor for small business loans and as a credit cards writer and editor. He has also written and edited for CreditCards.com, The Points Guy and The Motley Fool Ascent.
Read Robert Thorpe's full bio
The best financial advisors offer access to insight and can help you focus on your money goals. Whether you’re looking to plan for retirement, save for short- and long-term goals or find the right investment strategy, a financial advisor can help.
Today, there are financial advisors for just about any budget. This includes robo-advisors and in-person financial advisors. Here’s a look at the best financial advisors and tips on how to choose the right one for you.
Our Methodology
Our research is designed to provide you with a comprehensive understanding of personal finance services and products that best suit your needs. To help you in the decision-making process, our expert contributors compare common preferences and potential pain points, such as affordability, accessibility, and credibility.
Our Picks
- Best Robo-Advisor: Schwab Automated Investing
- Best Traditional Brokerage: Vanguard Personal Advisor
- Best for Woman-Focused Financial Advice: Ellevest Online Investing
- Best Welcome Bonus: Facet Wealth
- Best for Independent Advisor Options: Wealthramp
- Best Initial Consultation: Zoe Financial
- Best Tax Planning: Harness Wealth
- Best Financial Overview: Empower Wealth Management
- Best for Different Goals: Betterment Premium
- Best Low Minimum Investment: Merrill Guided Investing
Best Financial Advisors of 2024
Best Robo-Advisor
Why we chose it
Schwab offers a robo-advisor with two levels of support to help create a portfolio based on your goals. Schwab Intelligent Portfolios is the non-premium version with lower minimum and no advisory fees for investors who don’t need access to unlimited human advice. There’s also Schwab Intelligent Portfolios Premium which comes with unlimited access to financial planning tools and human guidance.
Pros
- Non-premium version with a lower minimum and no advisory fees
- Includes tax-loss harvesting and automatic rebalancing
- Access to unlimited financial planning tools and advice
Cons
- Doesn’t include individual stocks
- An initial setup fee of $300 in addition to the monthly advisory fee
- You’ll still pay the expense ratio on the ETFs in your portfolio on top of the other fees
Additional Information
- Fees: $0 commissions
- Account minimum:
- Schwab Intelligent Portfolios: $5,000
- Schwab Intelligent Portfolios Premium: $25,000
- Promotion:N/A
- Pricing:
- Schwab Intelligent Portfolios: $0 advisory fee
- Schwab Intelligent Portfolios Premium: One-time $300 initial planning fee and $30 monthly fee
Best Traditional Brokerage
Why we chose it
Vanguard is a traditional brokerage that has long been considered a good choice for low-cost index investments. The relatively low annual fee allows you access to guidance about tax strategies, retirement spending and other life events that might impact your money.
Pros
- Tax planning help
- Access to a wide variety of low-cost index investments
- ESG choices
Cons
- Fee could grow as your account balance grows
- Some account choices can result in higher fees
- Relatively high minimum balance requirement
Additional Information
- Fees: $0 commissions
- Account minimum:$50,000
- Promotion:N/A
- Annual gross advisory fees:
- 0.35% for all-index investment options
- 0.40% for active/index mix
Best Woman-Focused Financial Advice
Why we chose it
Ellevest focuses on women-centric investment and financial planning advice. While non-women can use the services, women might find the focus on specific challenges and issues, plus the all-women team of advisors in the Private Wealth Manager team might be attractive to women feeling discomfort with the status quo in financial planning.
Pros
- Access to a team of women advisors
- Lower fees with higher account balances
- Variety of mixes for different goals
Cons
- High minimum balance requirement
- Relatively high advisory fees
Additional Information
- Fees: $12 per month
- Account minimum:
- Ellevest Online Investing: $0
- Ellevest Private Wealth Management: $500,000
- Promotion:N/A
- Pricing:
- 1For Ellevest core (non-Impact) portfolios: 0.05% to 0.19% per year
- Ellevest Impact Portfolios: 0.13% to 0.19% per year
- Private Wealth Management: 0.55% to 1.00% based on account assets
Best Welcome Bonus
Why we chose it
Facet Wealth offers financial planning and investment management services with no minimum assets and a flat annual financial planning fee. You can work virtually one-on-one with a Certified Financial Planner to develop a plan and receive ongoing guidance to stay on track.
Pros
- No minimum asset requirement
- Welcome bonus if you maintain a minimum for 90 days
- Pricing is based on your financial situation, not assets under management
Cons
- Hefty annual fees for planning help
- There’s an enrollment fee in addition to planning fees
- No in-person meetings
Additional Information
- Fees: $0 commissions
- Account minimum:$0
- Promotion: $450 kick-start offer – Get $200 added to your brokerage account and receive a waiver of the $250 enrollment fee for new annual members. To qualify, you must invest and maintain $5,000 within the first 90 days. Expires March 31, 2024
- Pricing:
- Enrollment fee: $250
- Flat membership fee: $2,400 to $8,000 annually
Best for Independent Advisor Options
Why we chose it
Wealthramp is designed to match you with a financial advisor who is also a fiduciary, meaning they are supposed to make recommendations based on what’s best for your finances. Wealthramp gives you options after you take a survey and you can contact potential candidates on your terms.
Pros
- No minimum assets or fees to find an advisor
- Receive matches that you can contact on your terms
- All advisors on the platform are fiduciaries
Cons
- Fees can vary widely based on the advisor
- Finding fee information can be difficult until you talk to an advisor
- Limited customer support options
Additional Information
- Fees: Varies based on advisor
- Account minimum:$0
- Promotion: N/A
- Pricing: Varies based on advisor
Best Initial Consultation
Why we chose it
Zoe Financial connects you with a financial advisor and offers free initial consultations. Additionally, there’s a satisfaction guarantee that allows you to get a fee refund if you’re not happy after three months. You can choose an advisor and begin investing with the Zoe Financial platform relatively quickly.
Pros
- Free initial consultations with potential advisors
- No fee for getting matched with advisors
- Zoe refunds your fees if you’re not happy after three months
Cons
- It’s hard to determine fees since they are set by advisors
- While there’s no minimum account balance to get matched, different advisors have varying account minimums
- Many of the terms are vague
Additional Information
- Fees: Varies based on advisor
- Account minimum: Varies based on advisor
- Promotion: N/A
- Pricing: Varies based on advisor
Best Tax Planning
Why we chose it
Harness offers a variety of services to investors and business owners, including tax planning. You connect with highly-vetted firms and choose from a menu of services ranging from specific planning help to holistic wealth management.
Pros
- Variety of flat-rate and asset-based service choices
- No fee when using Harness to find an advisor
- No set minimum account balance to use Harness
Cons
- Pricing can be hefty, depending on the advisor
- Some firms require high minimums for investment management
- It can be difficult to determine pricing from information on the website
Additional Information
- Fees: Varies
- Account minimum: Varies based on advisor
- Promotion: N/A
- Pricing:
- Standalone financial planning:
- Basic: $1,200 to $5,000
- Intermediate: $5,000 to 10,000
- Advanced: $10,000 to $20,000
- Holistic wealth management: 0.6% to 1.5%, quarterly fee based on assets
- Standalone financial planning:
Best Financial Overview
Why we chose it
Empower offers a dashboard that allows you to get an overview of your financial picture, including your net worth and pulling in information from all your accounts. Additionally, it’s possible to get more personalized help with planning as well as investment management.
Pros
- Holistic overview of your finances
- Free version of the dashboard to get your financial picture
- Access to socially-responsible investing
Cons
- High minimum requirement
- You need a higher minimum to get access to one-on-one advice
- Relatively high advisory fees
Additional Information
- Fees: Varies
- Account minimum: $100,000
- Promotion: N/A
- Pricing: Annual management fees based on assets under management, ranging from 0.49% to 0.89%
Best for Different Goals
Why we chose it
Betterment Premium offers access to a team of CFPs to help you with various aspects of goal-based financial planning. There’s one management fee based on assets under management, with the advisors paid a salary rather than being paid based on commissions or recommendations.
Pros
- Team of CFPs to provide advice
- Tailored approach based on goals
- Reasonably competitive advisory fee
Cons
- High minimum balance requirement
- No dedicated advisor
- Can only access advisors by phone and email
Additional Information
- Fees: 0.40% annual fee
- Account minimum: $100,000
- Promotion: N/A
- Pricing: 0.40% of assets under management
Best Low Minimum Investment
Why we chose it
Get one-on-one help with your portfolio construction with a relatively low minimum balance requirement. If you don’t care about having a human advisor, there’s a version that has a lower minimum and lower advisory fee.
Pros
- Non-human option with a $1,000 minimum and 0.45% fee
- Connect to your Bank of America account for preferred rewards
- Access to socially responsible portfolios
Cons
- Promotion only applies to the lower minimum and fee, not the human-assisted option
- Management fee is relatively high
- Doesn’t offer tax strategy help
Additional Information
- Fees:
- Annual program fee:
- Annual program fee:
- Online with an advisor: 0.85% of account balance
- Annual program fee:
- Account minimum:
- Online: $1,000
- Online with an advisor: $20,000
- Promotion: Six months with no program fee for Online plan
- Pricing: 0.85% of account balance
How to Choose the Best Financial Advisors
When choosing a financial advisor, it’s important to consider your individual needs. As you hire a financial advisor, you want to make sure you’re getting the best bang for your buck based on your individual needs and money goals.
Services Offered
Start by considering what services you need from a financial advisor. For example, if you’re just looking for a robo-advisor to manage a basic retirement portfolio, the best financial advisor for you will be different than if you’re looking for someone who can help you create a financial plan or manage your tax strategy.
Others might offer full-service advising, including helping you manage your investment portfolio, create a succession plan for your business, and file your taxes. But it’s important to note that many financial advisory firms won’t file your taxes for you unless they include certified public accountants (CPAs) on staff.
Consider your needs and then review financial advisors to determine which meet your needs.
Minimum Balance
Some financial advisors require that you have a specific minimum balance with them. Depending on the situation, you might need to have as much as $500,000 in investible assets to work with some financial advisors. Other advisors might have smaller minimums—or impose no minimum balance.
If you’re just starting out with financial planning, you might need to look for an advisor with a lower minimum balance. Before moving forward, make sure you can maintain the minimum requirements.
Fees
Any fee you pay to a financial advisor or investment manager will eat into your long-term returns. As a result, you want to compare fees for the services that you receive. In some cases, a higher fee might be worth paying if you’re getting more access to personalized advice.
Some fee structures you’ll likely see include:
- Assets under management: You pay a fee based on your account balance with the financial advisor. For example, if you have $100,000 under management with an advisor and they charge 0.35% per year, your fee would be $350 for the year. But if you have a higher balance, like $1 million, your fee could be $3,500 per year. Some advisors offer tiered advisory fees, so you might pay a lower percentage of assets under management as your balance increases.
- Flat fee for services: Others charge a flat fee for ongoing services or for specific types of services. For example, you might pay $30 a month for access to advisors, instead of paying a percentage of your assets. Some financial advisors charge specific fees for certain services, such as creating a financial plan or providing tax planning help.
Pay attention to enrollment fees and one-time fees as well. Some financial advisors might charge an initial enrollment fee and then charge ongoing flat fees or advisory fees. Make sure you understand the structure and how that can impact your costs to access advice.
Finally, pay attention to whether the advisor gets paid by commission. In general, watch out for advisors who receive kickbacks for recommending certain products and services. They might not be fiduciaries and they could be padding their own pockets by putting you in funds or other investments that give them a better commission.
Type of Access to Advice
Don’t forget about the type of access to your advisor. If you’re looking for one-on-one help with a dedicated advisor and you want to speak in person, that might come with higher fees. But it might be worth it to you if you prefer to sit across the table from someone.
Many of the best financial advisors are mainly accessible online via video conference. You should also consider whether you’re getting a dedicated professional or whether you could simply be assigned someone on the team, depending on who’s available.
Using a matching service can help you figure out how to work with an advisor that matches your style and communication preferences. Think about how often your plan allows you access to an advisor. Some services limit the number of times you can meet over video conference or phone with an advisor, while others let you make unlimited appointments. You might be able to email questions at any time but need to set up appointments for phone or video consultations.
Investments Offered
If you’re using a financial advisor to manage your portfolio, and you want access to specific types of investments, make sure you understand what’s available. Some advisors can create socially responsible portfolios or offer access to tax-advantaged assets.
Before you hire a financial advisor, ask about the available investments, as well as the fees that might come with those. A financial advisor might have a relatively low advisory fee, but the funds they choose for your portfolio will have their own fees—and those might be higher than you expect. Find out what investments they plan to use in your portfolio and how the accompanying fees might impact your overall returns.
Financial Advisors vs. Robo-Advisors
A human financial advisor generally looks at your situation and can tailor guidance to fit your specific circ*mstances. On the other hand, robo-advisors are generally governed by algorithms. Your general goals and timeline are considered, but adjustments are often made based on mathematical calculations, so they might not be customized to the same degree that a human financial advisor might provide.
Financial Advisors vs. CPAs
In general, a financial advisor can provide some general advice on tax strategy and the impact different decisions could have on your tax situation. But financial advisors won’t generally help you prepare your taxes. A CPA can usually offer more in-depth tax planning and might even help you prepare and file your taxes. And depending on their certifications, they might even be able to represent you to the IRS if there’s an issue.
Financial Advisors vs. Insurance Agents
Some financial advisors can also sell insurance products to you. But even if they don’t sell insurance, some financial advisors can potentially help you figure out what coverage you need and where to get it. On the other hand, an insurance agent’s job is to sell insurance policies. Some insurance agents provide some advisory services and can help you with aspects of your planning. But it’s important to pay attention to how they’re paid since an insurance agent is more likely to work on commission than a traditional financial advisor.
Financial Advisors vs. Estate Planners
Estate planning can be a specialized type of financial advising. While some financial advisors can help you with estate planning basics, they don’t always have the specialized knowledge to create documents on your behalf. Estate planners might be able to help you navigate more advanced issues of succession planning and wealth transfer, and assist you in creating documents.
Frequently Asked Questions
What Is a financial advisor?
Basically, a financial advisor is someone who offers insight and guidance about money matters. Financial advisors might have different specialties and designations. For example, all CFPs are financial advisors but not all financial advisors have a CFP designation. Some financial advisors might be registered investment advisors as well. Pay attention to the type of financial advice you need in order to determine what type of advisor is likely to work best for you.
How Much Money Does It Cost To Hire a Financial Advisor?
The cost to hire a financial advisor varies based on the advisor and their services. Some robo-advisors have fees as little as 0.25% annually, and you don’t need to pay anything up-front since the advisory fee will be deducted from your account balance.
On the other hand, some financial advisors charge flat rates based on the services you use and how often you use them. You might pay a flat rate to have a plan created for you, or you might pay an hourly rate for a consultation. Depending on the financial advisor, you might need $250 or more for some services.
What’s the Difference Between a Financial Advisor and a Financial Coach?
In general, a financial advisor is a professional who focuses on helping you achieve long-term money goals and helps you create plans for reaching those goals. Often, financial advisors have professional designations provided to them after a set amount of education and after passing a test. There are many different certifications, but financial advisors usually have professional designation.
On the other hand, a financial coach might have some training and certification, but the industry is poorly regulated. Often, coaches work with you for short-term financial objectives, such as helping you get out of debt or setting up a savings plan for a specific goal. They might work with you on mindset and habit changes rather than providing ongoing wealth management services.
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Editorial Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post. We may earn a commission from partner links on Newsweek, but commissions do not affect our editors’ opinions or evaluations.
Miranda Marquit
Contributor
Miranda Marquit, MBA, is a freelance contributor to Newsweek’s personal finance team. She has an M.A. in journalism from Syracuse University and has been writing and podcasting about money since 2006. With a passion for financial wellness, Miranda has written thousands of articles about money management and beginning investing. Miranda is based in Idaho, where she enjoys spending time in the outdoors and volunteering with local nonprofits.
Read more articles by Miranda Marquit
