How to Hire a Financial Advisor

It’s selecting a long‑term partner who may influence your retirement timeline, how much you pay in taxes, your estate plan, and the long‑term trajectory of your wealth.

The stakes are high and only get higher as your wealth grows and your financial life becomes more complex.

This comprehensive guide walks you through considerations and questions to help you evaluate and compare financial advisors, with insights tailored to high‑net‑worth families whose needs often extend beyond investment management alone.

Signs Your Finances Have Become Too Complex to Manage Alone

You may be crossing the complexity threshold if:

• You manage multiple taxable, retirement, or trust accounts.
• Your compensation includes RSUs, stock options, or deferred comp.
• You’re planning for a liquidity event or managing concentrated stock risk.
• Your estate is approaching or surpassing federal exemption limits.
• You have meaningful charitable goals that require strategy to maximize impact.
• You have one or more filing years with a surprise tax bill

You may think of your financial plan as a static document, but it's more helpful to consider it like a web. A change in one part (say, your equity vesting) will have ripple effects through other aspects like your retirement plan, tax strategy, and even charitable giving.

This is where integrated wealth management delivers real value. At Plancorp, we call this Absolute Wealth Alignment. It’s about making coordinated decisions that align your financial plan with your goals and values.

The Emotional Side of Wealth

Even highly capable investors eventually reach a point where managing every financial detail becomes more than just time‑consuming — it becomes mentally draining.

The constant cycle of monitoring markets, rebalancing portfolios, tracking tax implications, modeling scenarios, and staying ahead of planning decisions can quietly evolve from a project to a persistent source of pressure.

But the burden isn’t only intellectual. It’s emotional. When your financial life becomes more complex, it’s normal to feel the weight of uncertainty:

• Am I missing something important?
• Is my plan on track?
• Am I making the right decisions for my family’s future?
• What happens if I overlook a detail that really matters?

Many people find that working with an advisory team can help bring structure and clarity to complex financial decisions, particularly as responsibilities grow.

With the right advisor, you can:

• Reduce decision fatigue by handing off ongoing analysis and monitoring
• Delegate complexity to professionals who live and breathe this work
• Gain a trusted sounding board for major life and financial decisions
• Feel more organized, supported, and in control
• Experience genuine peace of mind knowing there’s a team looking ahead for you — not just reacting

This kind of value may not show up on a performance report, but can directly impact your quality of life by reducing your workload and restoring peace of mind.

Brokers vs. Registered Investment Advisors (RIAs)

What is a broker?

A broker is licensed to sell financial products such as mutual funds, annuities, insurance, stocks, and bonds. They are typically compensated through commissions or revenue-sharing agreements, which can create potentially conflicting incentives.

What is an RIA?

An RIA provides advice rather than selling products. RIAs are held to a fiduciary standard, which requires them to act in a client’s best interest and disclose material conflicts of interest.

Plancorp is a registered investment adviser and provides advice as a fiduciary under applicable law. We disclose material conflicts of interest in our Form ADV. Plancorp has served clients for over 40 years and has maintained a CEFEX certification for more than 15 years.

Disclosure: CEFEX is an independent organization that evaluates certain operational processes and practices. Certification criteria and scope vary by firm and are not a guarantee of investment performance or client outcomes. Plancorp pays fees associated with the

Legal Standards: Suitability vs. Fiduciary

Suitability: The product or recommendation must be “appropriate,” but may not necessarily be the best for the client’s situation or the lowest‑cost option.

Fiduciary:  Advisors must act in the client’s best interest within the scope of the advisory relationship and disclose material conflicts of interest. 

For high net worth families, a fiduciary model can reduce certain conflicts associated with commission-based compensation, though no structure fully eliminates potential conflicts.

Understanding Financial Advisor Fee Structures

One of the most important parts of hiring a financial advisor is understanding how they’re paid. Fee structures influence incentives, potential conflicts of interest, and the type of advice you receive. High‑net‑worth families especially benefit from models that minimize conflicts and maximize long‑term alignment.

Here is a clear comparison of the most common fee structures you’ll encounter.

1. Asset‑Based Fees / Assets Under Management (AUM)

How it works: The advisor charges a percentage of the assets they manage for you, often on a tiered schedule.

Who it works best for: High‑net‑worth families seeking holistic planning and ongoing collaboration.

At Plancorp, we operate on a transparent, tiered fee‑only AUM schedule, subject to a minimum annual fee, with no commissions or kickbacks. This is designed to align advisor compensation with ongoing client relationships rather than product sales.

>> Use our easy Fee + Value Calculator to quickly see an estimated annual fee personalized to you.

2. Flat or Retainer Fees

How it works: A fixed annual or quarterly fee for comprehensive planning services.

Who it works best for: Those wanting objective planning without investment management, or entrepreneurs with fluctuating income.

3. Hourly Fees

How it works: You pay for planning time by the hour.

Who it works best for: DIY investors needing occasional expert input.

4. Commission‑Based Compensation

How it works: Advisors (often brokers or insurance agents) are paid when they sell products like annuities, insurance, mutual funds, or structured products.

Who it works best for: Someone needing a specific insurance product rather than comprehensive wealth management. 

5. Fee‑Based (Hybrid) Compensation

How it works: A blend of fees and commissions.

Who it works best for: Clients who want a one‑stop shop and don’t mind mixed incentives.

Which Structure Best Serves High‑Net‑Worth Families?

Many families with multimillion‑dollar portfolios look for advisors who offer:

• Fee‑only (not fee‑based)
• Fiduciary advisors
• Fully integrated planning and investment management

Plancorp uses a fee‑only, transparent AUM model, supported by a dedicated team to ensure planning and investment decisions are deeply coordinated, not siloed.

This structure eliminates commissions and keeps all incentives aligned with your long‑term success.

Hiring a Family Member or Close Friend

It’s common for people to consider a family member or close friend as their financial advisor. Familiarity can feel reassuring, especially when trust already exists.

But familiarity alone doesn’t guarantee the right expertise, structure, or objectivity for a complex financial life.

A few considerations are worth keeping in mind.

When wealth grows, financial decisions often require difficult conversations, clear accountability, and specialized expertise across multiple areas. Personal relationships can make it harder to ask challenging questions, push for clarity, or change direction if the relationship no longer serves your needs.

There’s also the question of scope. Many high‑net‑worth families benefit from a coordinated team of specialists rather than a single individual, no matter how capable that individual may be.

Finally, separating personal relationships from professional advisory roles can help protect both. A strong advisor relationship works best when it’s built on objectivity, transparency, and clearly defined responsibilities without the emotional pressure that personal dynamics can introduce.

In many cases, working with an independent, team‑based advisory firm allows families to preserve personal relationships while ensuring their financial decisions are guided by experience, structure, and fiduciary oversight.

Online Searches

Searching “how to hire a financial advisor” or “fee-only fiduciary advisor near me” can uncover firms you would not find otherwise.

Look for firms that:

• Clearly explain how they are paid
• Publish educational content
• Outline their planning process
• Serve clients like you

Transparency online often signals transparency in practice.

Professional Directories

• CFP® Board (for Certified Financial Planner professionals)
• NAPFA and Fee-Only Network (for fee-only advisors)

These tools help you filter by credentials and compensation structure. While they don’t guarantee quality, they create a screening baseline that can help you narrow down options better than a Google search.

The Form ADV, while not an exciting read, is very revealing. It will cover:

• How they are compensated
• Any disciplinary history
• Other business activities
• Assets under management
• Client types
• Fee structure

To avoid this, use a structured interview process to keep one impressive answer from coloring your judgement:

• Ask every advisor the same questions
• Score answers immediately on a 1–5 scale
• If you have a partner, score independently and compare notes only after interviews are complete

Download the Structured Interview Worksheet

To help you compare advisors objectively and reduce bias, we created a Structured Interview Worksheet — the same framework our team uses when helping families think through major financial decisions.

Download the free worksheet to get:

• A printable 10‑question interview scorecard
• Ideal answers + red flags to listen for
• Space for you (and your partner) to independently score each advisor
• A consistent framework that makes comparisons far clearer 

Core Interview Questions

1. How do you get paid?

You want clarity and simplicity here. If you hear complicated explanations, ask for specifics.

If you ask what your annual all-in cost would be based on the value of your current investment portfolio and the advisor can’t give you a confident answer, that’s a red flag.

At Plancorp, we built an easy-to-use Fee + Value Calculator that answers that question, quickly and transparently, based on your portfolio value and estimated years until retirement.

2. Does your firm earn revenue from anyone other than clients?

The ideal answer for conflict minimization is “no.” While conflicts aren’t always disqualifying, hidden ones are. If they answer yes, ask:

• From whom?
• Under what circumstances?
• How much of firm revenue comes from that source?
  

3. What services do you provide?

Push for specificity here. For high-net-worth families, services should extend beyond investment management.

Look for an advisor or firm that incorporates:

• Comprehensive financial planning
• Tax planning coordination
• Retirement planning (both saving and drawdown strategies)
• Estate planning collaboration
• Risk management
• Cash flow modeling
• Charitable giving

If a holistic approach to planning feels secondary to investment management, that can be a red flag, especially for high-net-worth families.

4. What is your investment philosophy?

You’re looking for consistency and discipline. Strong answers typically include:

• Long-term asset allocation
• Broad diversification
• Cost awareness
• Tax efficiency
• Clear rebalancing strategy

Be cautious of:

• Market timing promises
• Frequent trading
• “We can beat the market” claims

5. How do you think about taxes?

For high earners, this question is foundational. At higher income or asset levels, taxes are often the single largest ongoing expense in your financial life. And unlike market returns, taxes aren’t random. They’re predictable, modellable, and manageable with the right strategy.

Ask:

• Do you coordinate directly with my CPA?
• Do you provide proactive tax projections?
• Do you manage capital gains intentionally?
• Do you consider asset location across accounts?

If your advisor doesn’t think proactively about taxes, you may not be fully accounting for the impact of investment and planning decisions.

6. How do you handle market declines?

This question will reveal the advisor’s philosophy under stress. Look for:

• Behavioral coaching strategies to help clients remove emotion form investing
• Disciplined management that aims to manage risk and maintain discipline during market volatility
• A rebalancing process that is proactive
• A solid communication plan so that clients aren’t ever left guessing

7. Who will I actually work with?

Large firms often use team-based structures. Clarify:

• Who your primary relationship manager would be
• If other advisors will provide support for your plan when needed
• How involved firm-wide investment and planning committees are with the day-to-day client management
• What succession plans are in place for advisors approaching retirement

For multi-decade relationships, continuity matters.

At this stage, you may need to share sensitive information like details about your income, current account balances, and prior tax returns. That’s appropriate and necessary for advisors to get the full picture of your needs and draft sample plans.

Look for:

• Depth of analysis
• Thoughtfulness
• Personalization
• Clear communication

How many advisors should I interview?

Two to four is typical. Fewer limits comparison. Too many creates noise.

Should I choose a local advisor?

Not necessarily. Virtual collaboration is standard today. What matters more is expertise and fit.

Can I switch advisors later?

Yes. But transitions can involve paperwork, tax considerations, and emotional friction. Choose carefully upfront.

Is it worth hiring a financial advisor if I already have investment success?

Investment performance alone is rarely the whole picture.

Tax efficiency, withdrawal strategies, estate coordination, and behavioral discipline often drive long-term outcomes more than stock selection.

When in doubt, consider this key question: When the market drops, how confident are you that your plan is still on track?