What does a financial advisor do?

Financial advisors help clients with various aspects of their financial lives. Not all financial advisors offer the same services, but many assist with financial goals such as budgeting, retirement planning, investment management, taxes, insurance and estate planning. These areas are just some of what financial advisors do to help their clients.

Do I need a financial advisor?

Most people consider hiring a financial advisor when facing a major life event (think marriage, divorce, planning for retirement, juggling debt, handling an inheritance, etc.). But consulting with a financial pro is also valuable to help you optimize your plan, get a second opinion on high-dollar decisions or if you simply lack the experience necessary to manage your finances on your own. Hiring an advisor who charges an hourly or per-project fee is an economical way to get professional guidance on a specific issue you face.

When should I switch financial advisors?

Not everyone hires the right financial advisor on their first try. It may be necessary to choose a new financial advisor if you aren’t getting enough attention from your current advisor, their fees are too high or if they push you toward certain investments that don’t make sense for your needs.

How much does a financial advisor cost?

Financial advisor costs can vary quite a bit from one advisor to the next. Some advisors charge a fee based on the level of assets under management, while others charge a flat rate or by the hour. In general, 1 percent is a good threshold to keep in mind when considering financial advisor costs. If you’re paying much more than that, make sure you’re getting plenty of value-added services in return for your outlay.

What questions should I ask a financial advisor?

When you meet a financial advisor for the first time, there are some key questions you should get answers to. One of the most important questions to ask is how they are compensated and whether or not they are a fiduciary. A fiduciary means they’re required to put your interests before their own or their firm’s. You’ll also want to understand how their firm evaluates them and what would happen to your account if they left the firm.

What is the difference between a financial planner and a financial advisor?

It can be hard to tell the difference between a financial planner and a financial advisor, and the two terms are often used interchangeably. However, their titles provide a clue to their different areas of focus. Financial advisors typically focus on helping clients manage their portfolios and invest towards goals such as saving for retirement. A financial planner (often a CFP, or certified financial planner) is more likely to help with your overall financial picture (sometimes including investment management) and assist with things such as budgeting or developing a comprehensive financial plan. (Here's a rundown of different titles money pros use and what they mean.)

Should I choose a robo-advisor, online financial planning service or in-person financial planner?

Whether you choose a robo-advisor, online financial planner or an in-person financial advisor will depend on your own preferences as well as the level of service you are looking for from an advisor. Robo-advisors provide the most focused level of service, building you an investment portfolio based on your risk tolerance and financial goals. An online financial planner will provide a more personalized plan beyond investments and can help with questions you may have. An in-person financial advisor will likely offer the most complete level of service and can assist with several different areas of your financial life, such as investments, retirement planning or even taxes. The fees and costs you’ll pay for each one varies, but typically increases with the level of service you’ll receive. Robo-advisors are typically the least expensive, followed by online financial planners. An in-person advisor will be the most expensive and may charge you more than 1 percent of your assets annually.

Best Financial Advisors: Top Firms For 2025

Best financial advisors: Top firms to consider

There are hundreds of thousands of financial advisors to choose from across the U.S. As if that's not intimidating enough, the menu of services, mode of delivery (in-person, online-only) and how they price their advice (fee-only, commission-based, as a percentage of the assets they manage) can vary widely.

Bankrate evaluated dozens of the largest financial advisory firms to make it easier to find trusted money advice based on your personal needs, budget and other preferences. The providers below are recognizable names with a nationwide presence. If you prefer to work with an independent advisor or a smaller firm, use Bankrate's Advisor Match tool to connect with a vetted and certified fiduciary pro.

Charles Schwab
Vanguard
Fidelity Investments
Facet
J.P. Morgan Private Client Advisor
Edward Jones

Bankrate evaluated dozens of financial advisor firms based on various factors including:
- Assets under management: Bankrate considered how much a firm had in client assets to identify firms that had already established relationships with a large number of clients. A higher AUM level can sometimes translate to lower fees as well.
- Fees: Advisory fees vary widely depending on the advisor, but firms were given credit for having lower costs.
- Variety of services offered: Firms were given more credit for offering a greater number of services beyond basic financial advice such as estate planning, tax services and more.
- Investment minimums: The amount required to get started with an advisor can depend on the advisor and the specific program you’re using. Firms were given more credit for having lower investment minimums.
- Client satisfaction survey came from an independent market research firm.
To learn more, read our full ratings methodology for the best financial advisors.

Charles Schwab

Charles Schwab offers one of the best online brokerage platforms, but you can also find top-notch financial advisor solutions that meet your needs. In fact, Schwab was named Best Financial Advisor as part of the 2025 Bankrate Awards.

Schwab offers various levels of financial advising.

Schwab financial consultants are available for free to clients with $500,000 in assets who want help building a financial plan and sifting through different investment options.
Schwab Intelligent Portfolios Premium members can get access to a financial advisor by paying a $300 one-time planning fee and $30 a month if they have an account balance of at least $25,000.
For those looking for an even more personalized approach, Schwab Wealth Advisory is available starting at $500,000 in assets and charges an annual fee of 0.80 percent of assets, with the fees declining at higher asset levels.

Schwab can also help you find an independent financial advisor in your area through its website findyourindependentadvisor.com. Fees for these advisors may be significantly higher than those for Schwab’s wealth advisory business, however.

AUM: $590.5 billion in “managed investing solutions”
Account minimums: $25,000; 500,000
Fees: $300 plus $30 a month; 0.80 percent on first $1 million; advisor network fees vary

Vanguard

Vanguard may be best known for its plethora of low-cost fund options, but it also offers several advisory options that allow clients who meet minimum asset levels (ranging from $50,000 to $5 million) to speak with a financial advisor. The firm offers three service levels that provide access to personalized financial planning, various investment options and automated tax-loss harvesting.

If you’re looking for a dedicated advisor to work with over time, you’ll need to choose Vanguard’s Personal Advisor Select program, which comes with a $500,000 investment minimum. Those looking for more complex financial advice such as estate planning or charitable giving advice will need Vanguard’s Personal Advisor Wealth Management services. As you'd expect from the industry's low-cost leader, all of Vanguard’s financial advisor options feature reasonable annual fees ranging from 0.30 percent to 0.40 percent, and the fees decline as your assets grow.

AUM: $107.7 billion in discretionary client assets
Account minimums: $50,000 to $5 million depending on level of advice
Fees: 0.30 percent to 0.40 percent; decline at asset levels above $5 million

Fidelity Investments

Fidelity has been around for more than 75 years and is one of the largest financial services companies in the U.S. The company offers a handful of options for clients looking to work with financial advisors. If you’re looking for a basic level of service such as developing an investment strategy and staying on track with your goals, Fidelity’s phone-based advisors are standing by. They’ll help you develop a retirement savings plan and tax-smart investing moves to help you reach your goals for an advisory fee of 1.1 percent and a minimum investment of $50,000.

Getting a dedicated advisor requires at least $500,000 in assets and costs up to 1.5 percent in annual advisory fees. For this higher fee, you’ll also get access to a broader array of services, such as insurance and estate planning.

AUM: $818.8 billion in discretionary client assets
Account minimums: $50,000 to $2 million depending on level of advice
Fees: 0.20 percent to 1.50 percent

Facet

Facet is a unique financial advisor firm on this list because it doesn’t charge an annual fee based on your level of assets. Rather, it charges a flat $2,100 to $6,600 per year fee based on the type of plan you choose. While this might sound like a lot, it actually ends up being quite reasonable for investors with $1 million or more in assets, and can even make sense for those with lower asset levels.

You’ll work with a financial advisor — a certified financial planner (CFP) who acts as a fiduciary — whom you will meet with via video conference. They’ll be able to help you with any number of financial issues such as retirement planning, taxes, buying a house, saving for college, insurance, estate planning and more. There are no investment minimums, so anyone can sign up, though the fees make the most sense for those who have already accumulated significant savings.

AUM: $3.9 billion in discretionary client assets
Account minimums: None
Fees: $2,100 to $6,600 per year

Learn more: Bankrate’s guide to financial advisors

J.P. Morgan Private Client Advisor

You may know J.P. Morgan as the largest bank in the U.S., but it also offers financial advisory solutions at a reasonable rate, relative to most other financial giants. With J.P. Morgan Personal Advisors, you work with a team of advisors to help develop a personalized financial plan. These advisors are fiduciaries, so they’ll put your interests before their own. Fees start at 0.6 percent for assets up to $250,000.

For a more personalized experience, J.P. Morgan Private Client Advisor allows you to work one-on-one with a dedicated advisor in your area. You’ll get a personalized financial strategy and an investment portfolio that’s tailored to your needs and goals. Fees for this service start at 1.45 percent annually, but decline as your portfolio grows. There may be additional fees based on how your portfolio is invested.

AUM: $322.7 billion in discretionary client assets
Account minimums: $10,000 to $100,000 depending on type of account
Fees: Maximum advisory fee of 1.45 percent; other fees may apply

Edward Jones

Edward Jones offers a traditional financial advisory experience, but its fees are below that of other well-known firms. You can get started with as little as $5,000, but you’ll need at least $25,000 if you want your advisor to manage your portfolio for you. Fees start at 1.35 percent (versus the 1.5 to 2 percent or more industry standard at similar firms), but decline at higher asset levels. Certain accounts are also subject to a platform fee that starts at 0.05 percent and declines to 0 percent for assets over $10 million.

Edward Jones has more than 20,000 financial advisors with offices in all 50 states offering various services including retirement planning, education savings, estate planning, insurance and more.

AUM: $342.6 billion in discretionary client assets
Account minimums: $5,000 to $1 million depending on type of account and investment program
Fees: Start at 1.40 percent; decline at higher asset levels

Learn more: 7 mindset shifts that can make you a millionaire

How to choose a financial advisor

Choosing a financial advisor can be intimidating and frustrating, so it helps to proceed methodically. Here are some key things to consider as you make your decision.

What kind of financial advising relationship are you looking for? You may need only a one-time planning session with an advisor to get you on the right track, or you may want an ongoing relationship where an advisor manages your portfolio and meets with you to provide regular updates. Understanding what you need from an advisor will help you identify potential fits.
Know how an advisor gets paid. How an advisor is compensated is one of the most important things to understand, because how they get paid can impact the advice they give you. Advisors who earn commissions on the sale of certain products may push those products on clients even when they aren’t the best choice. Fee-only advisors don’t earn commissions on the sale of products, so their advice is more likely to be tailored to the needs of the client. Better yet, ask any advisor you're considering if they are a fiduciary, which means they’re required to put your interests before their own or their firm’s.
What are their credentials? You’ll also want to understand an advisor’s qualifications before hiring them. Advisors with professional certifications such as the Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA) designations have gone through rigorous training and are well-respected in the industry.

Robo-advisors vs. human financial advisors: How they compare

Investors who are largely looking for help managing their investments may benefit from using a robo-advisor instead of a traditional financial advisor. Robo-advisors use algorithms to build a portfolio based on your goals and risk tolerance, and typically come with low investment minimums and fees well below that of most human advisors.

Both robo-advisors and human financial advisors can help with investment management, but human advisors typically offer a greater number of services and a deeper relationship, albeit at a higher cost. However, some robo-advisors offer the option of working with a human advisor for free (if you meet certain account minimums) or for a small extra fee.

Here are some of the best robo-advisors to consider if you decide you don’t need all the services offered by traditional financial advisors.

Learn more: 8 ways to invest like a millionaire

Financial advisor FAQs

Financial advisors help clients with various aspects of their financial lives. Not all financial advisors offer the same services, but many assist with financial goals such as budgeting, retirement planning, investment management, taxes, insurance and estate planning. These areas are just some of what financial advisors do to help their clients.
Most people consider hiring a financial advisor when facing a major life event (think marriage, divorce, planning for retirement, juggling debt, handling an inheritance, etc.). But consulting with a financial pro is also valuable to help you optimize your plan, get a second opinion on high-dollar decisions or if you simply lack the experience necessary to manage your finances on your own. Hiring an advisor who charges an hourly or per-project fee is an economical way to get professional guidance on a specific issue you face.
Not everyone hires the right financial advisor on their first try. It may be necessary to choose a new financial advisor if you aren’t getting enough attention from your current advisor, their fees are too high or if they push you toward certain investments that don’t make sense for your needs.
Financial advisor costs can vary quite a bit from one advisor to the next. Some advisors charge a fee based on the level of assets under management, while others charge a flat rate or by the hour. In general, 1 percent is a good threshold to keep in mind when considering financial advisor costs. If you’re paying much more than that, make sure you’re getting plenty of value-added services in return for your outlay.
When you meet a financial advisor for the first time, there are some key questions you should get answers to. One of the most important questions to ask is how they are compensated and whether or not they are a fiduciary. A fiduciary means they’re required to put your interests before their own or their firm’s. You’ll also want to understand how their firm evaluates them and what would happen to your account if they left the firm.
It can be hard to tell the difference between a financial planner and a financial advisor, and the two terms are often used interchangeably. However, their titles provide a clue to their different areas of focus. Financial advisors typically focus on helping clients manage their portfolios and invest towards goals such as saving for retirement. A financial planner (often a CFP, or certified financial planner) is more likely to help with your overall financial picture (sometimes including investment management) and assist with things such as budgeting or developing a comprehensive financial plan. (Here's a rundown of different titles money pros use and what they mean.)
Whether you choose a robo-advisor, online financial planner or an in-person financial advisor will depend on your own preferences as well as the level of service you are looking for from an advisor.
- Robo-advisors provide the most focused level of service, building you an investment portfolio based on your risk tolerance and financial goals.
- An online financial planner will provide a more personalized plan beyond investments and can help with questions you may have.
- An in-person financial advisor will likely offer the most complete level of service and can assist with several different areas of your financial life, such as investments, retirement planning or even taxes.
The fees and costs you’ll pay for each one varies, but typically increases with the level of service you’ll receive. Robo-advisors are typically the least expensive, followed by online financial planners. An in-person advisor will be the most expensive and may charge you more than 1 percent of your assets annually.

Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.

Best financial advisors of July 2025

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