How to Choose and Work With an Investment Advisor

Step 2

Understand Advisor Designations and What They Do

The Investments & Wealth Institute notes that the CIMA credential is the highest level of investment education for client-facing advisors, while CPWA and RMA dive deeper into private wealth and retirement respectively.

Step 3

Verify Registration, Disciplinary History, and Fiduciary Status

FINRA recommends checking an adviser’s Form CRS and using BrokerCheck or the Investment Adviser Public Disclosure database because dually registered professionals provide both investment advice and brokerage services, with Form CRS offered for service and cost comparison.
Hightower Advisors shows what a true fiduciary model looks like: the firm’s affiliated practices “operate as fiduciaries, meaning they prioritize client interests and goals over sales targets.” You can see how they blend innovative strategies with a client-first approach.

Key Questions to Ask an Advisor (adapted from the SEC list):
- Are you registered with the SEC or state regulators?
- How are you compensated?
- Have you faced disciplinary actions?
- What services do you provide and what are their limits?
- Will you act as a fiduciary at all times?

Step 4

Compare Business Models and Fees

Bankrate stresses that you must “understand advisor compensation, qualifications, and client-advisor relationships” before signing anything.

Step 5

Evaluate Technology, Security, and Client Experience

Ameriprise lets clients stay connected “via secure tools such as the website and mobile app” and backs this promise with an Online Security Guarantee to safeguard personal information. Likewise, its account dashboard allows you to message your advisor, store documents, and monitor progress in real time.
Online-first marketplaces like Zoe Financial leverage technology in a different way; they connect individuals with vetted, fiduciary advisors and were named NerdWallet’s Best Online Financial Advisor for 2022-2024.

Step 6

Match Philosophy and Resources to Your Goals

• Hightower’s Investment Solutions group marries “institutional asset-manager resources with boutique client service,” managing $6.6 billion across equity, fixed income, and private markets.
  • Integrity Wealth Advisors highlights that its products are “not FDIC-insured, not guaranteed, and subject to investment risks, including loss of principal,” a reminder that any reputable advisor will disclose risk clearly.
  • Colorado Financial Advisors leans on in-house CFP® professionals who meet the highest industry requirements for ethics, education, experience, and exams.

Make sure the firm’s solutions (active vs. passive, public vs. private, ESG vs. traditional) align with your own investing philosophy.

Step 7

Formalize the Relationship

Ameriprise recommends a complimentary initial meeting where an advisor will explain how they “plan for future financial goals with tailored investments and solutions,” then follow up via regular meetings to analyze progress and update the approach.

Documents to sign usually include:
1. Advisory Agreement (services, fees, termination)
2. Form CRS (relationship summary)
3. Form ADV Part 2 (detailed brochure)
4. Privacy, cyber-security, and conflict-of-interest disclosures

Step 8

Monitor Performance and Service Quality

CAPTRUST reminds clients that it is “majority employee-owned” and provides a dedicated team that “bridges complex financial needs with effective solutions,” proving that accountability does not stop after onboarding.
Create an annual review checklist:
- Performance vs. benchmark and stated goals
- Tax impact of trades
- Progress toward life milestones
- Fee drag and alternative lower-cost options
- Continued alignment with risk tolerance

FINRA’s investor helpline can help if you suspect misconduct, and the SEC’s SALI tool allows you to look up enforcement actions.

Step 9

Know When to Switch Advisors

Client feedback surveys at Ameriprise average 4.9/5, yet the firm openly notes that “working with any advisor does not guarantee future financial results,” illustrating that even satisfied investors should stay vigilant. Reasons to consider a change include:
- Advisor ignores your questions or emails
- Investment approach drifts without explanation
- You now need expertise the current advisor lacks (e.g., business exit)
- Fees have risen faster than value delivered

Zoe Financial’s marketplace makes switching easier by offering a second opinion from multiple fiduciaries.

Frequently Overlooked Tips

• Ask whether your prospective advisor carries Errors & Omissions (E&O) insurance.
  • For DIY investors who just want a sounding board, consider hourly or project-based CFP®s.
  • Career-minded professionals: Hightower’s HIGHflex policy lets employees “work three days in the office and two remotely, with a bonus month from anywhere in the U.S.,” a sign of modern culture that often benefits clients through happier staff.

Conclusion

Selecting a financial advisor is not about outsourcing responsibility—it’s about building a collaborative partnership grounded in transparency, fiduciary duty, and mutual respect. From registration checks on Investor.gov to evaluating fee structures, security guarantees, and cultural fit, every step in this guide empowers you to find an advisor who serves as a true steward of your wealth. Remember that investment products are not insured by the FDIC or NCUA and carry risks, including the potential loss of principal, so keep asking questions, keep learning, and keep your financial destiny in focus.