This article is part of the Retirement Financial Life Equation (RFLE) series. It was initially published on November 3, 2017, and updated in January 2026.
This article is the third and final one in my series about financial advisors. If you read the first two, you hopefully have a better understanding of what advisors do, where they work, and how they’re compensated. In this article, I will cut to the chase: Do you need an advisor, and if so, how do you choose the right one for you and your situation?
Decisions, decisions, decisions
To start with, if you want to save for retirement outside of a 401(k)/403(b) type account, or want to transfer your savings from one of those accounts to an IRA, you’ll need to choose a company to hold your assets for you. (Unless you use First Mattress Financial, which I don’t recommend.) The company could be a bank, a mutual fund company, a brokerage firm, an insurance company, or an investment management firm. For example, I currently use a Fidelity brokerage account for my IRA.
Many people use a company they already have a relationship with—their local bank or insurance company. That may or may not be the best choice. In some cases, financial advisory services are adjunct “me too” functions that aren’t a major business focus for the institution. They’re offered through a smaller division or a third party. Larger banks (regionals and nationals) tend to have more focus and depth in this area, especially major financial institutions.
Since 2017, the brokerage/custodian landscape has consolidated significantly:
- TD Ameritrade was acquired by Schwab (completed 2020), creating a mega-custodian
- Schwab also acquired USAA Brokerage
- E-Trade was acquired by Morgan Stanley (2020)
- Ally Invest (formerly TradeKing) remains, but is smaller
- Robinhood emerged as a major player for younger investors, though it is less suitable for retirement accounts
The dominant custodians for retirement accounts in 2025 are:
- Fidelity (my choice—excellent platform, great funds, strong service)
- Schwab (merged with TD Ameritrade, huge asset base, comprehensive services)
- Vanguard (low-cost leader, especially good if you primarily want their index funds)
- Interactive Brokers (excellent for sophisticated investors, complex interface)
All now offer zero-commission trading, excellent research tools, and both DIY and advisory options.
Personally, I like Fidelity, Schwab, and Vanguard for brokerage services. All three are excellent choices with slightly different strengths. TIAA is worth considering, especially for educators and nonprofit employees who already have their retirement accounts there.
In 2025, the differences between major custodians have narrowed considerably:
- All offer zero-commission stock/ETF trading
- All have excellent mobile apps and platforms
- All offer both ultra-low-cost index funds and advisory services
- All provide robust research and educational resources
Your choice might come down to:
- Fidelity: Best overall platform, great customer service, excellent proprietary research
- Schwab: Largest asset base post-TD merger, strong banking integration, suitable for a one-stop shop
- Vanguard: Lowest-cost index funds, investor-owned structure, more limited trading platform
Any of these three will serve you well. Avoid smaller, less-established platforms for retirement accounts—you want a custodian that will definitely still exist in 30 years.
Once you choose a company, you have to make another decision: whether to hire someone to manage your money.
Do you need an advisor?
We all need wise advice and counsel. The Bible encourages getting counsel from others: “Without counsel plans fail, but with many advisers they succeed.” (Proverbs 15:22, ESV)
This verse stresses the need for good advice from more than one person. So before making any major financial decision, especially how to invest your retirement savings, you would do well to talk to several people, including some who don’t make their living selling the very investments you’re thinking about buying. And most importantly, you want to talk to those who will give you honest, wise, and godly advice.
You could, of course, go the do-it-yourself (DIY) route. I think that’s a great way to go for many people, much of the time. That’s because no one cares about your success in managing your money as much as you do. You’re the one who worked hard and saved. And with a little time and effort, you can manage it yourself.
Here’s my framework for whether you need an advisor:
You probably DON’T need ongoing advisory services if:
- Your situation is relatively straightforward (one or two account types, no complex tax issues)
- You have time and a genuine interest in learning investment basics
- You can remain disciplined during market volatility (this is the hardest part)
- Your portfolio is primarily in low-cost index funds with simple rebalancing
- You’re comfortable with periodic project-based advice rather than hand-holding
You probably DO need at least periodic professional guidance if:
- You’re approaching retirement and facing irrevocable decisions (Social Security claiming, pension elections, Roth conversions)
- You have multiple income sources and account types requiring complex coordination
- You’re inherently emotional about money and prone to panic-driven decisions
- You lack the time or interest to learn the necessary financial concepts
- You have a spouse with a very different risk tolerance or financial knowledge
- You’re in retirement and navigating withdrawal strategies, RMDs, and estate planning
You probably need ongoing comprehensive advisory services if:
- Your financial situation is genuinely complex (business ownership, substantial estate, multiple properties)
- You have special needs dependents requiring long-term planning
- You lack a spouse or partner to provide financial oversight and accountability
- You’ve demonstrated an inability to follow a disciplined investment strategy
- You value peace of mind more than fee savings
Notice the distinction between “periodic professional guidance” and “ongoing comprehensive services.” Many people need the former but pay for the latter.
But it isn’t for everyone. If you’re just too busy (or have other priorities), have absolutely no interest, tend to be “emotional” about investing (many people are), or have a tendency to act on impulse, you would probably be better off with an advisor.
If you decide to DIY, you have to be willing to devote some time to learning the basics of investing and choosing the right investments for your goals and risk tolerance. You’ll need to gather information and guidance about investing from sources you trust. Complex decisions may necessitate meeting with a professional advisor regardless. And most importantly, once you come up with a plan, you need to stick with it—and that can be the hard part, especially when markets get rocky.
There is much to be learned from experts in the field of investing. I’ve learned from fellow believers like Larry Burkett, Howard Dayton, Ron Blue, Matt Bell, Austin Pryor, and Dave Ramsey. I also follow “secular” experts like Jack Bogle (the founder of Vanguard, who passed away in 2019), retirement experts Wade Pfau and Steve Vernon, investment manager Paul Merriman, and authors like Ben Stein and Tim Maurer.
The resources available for DIY investors have exploded since 2017:
Excellent books published since 2017:
- How to Make Your Money Last by Jane Bryant Quinn (comprehensive retirement planning)
- The Simple Path to Wealth by JL Collins (straightforward index investing philosophy)
- Retirement Income for Life by Frederick Vettese (Canadian perspective but universally applicable)
- The 4% Rule and Safe Withdrawal Rates by Karsten Jeske (deep dive into withdrawal strategies)
Outstanding free online resources:
- Bogleheads.org forum and wiki (gold standard for DIY investor education)
- White Coat Investor blog (excellent for high earners, professionals)
- Michael Kitces’ Nerd’s Eye View blog (sophisticated planning concepts explained accessibly)
- Christine Benz at Morningstar (retirement portfolio and income strategies)
- Wade Pfau’s Retirement Researcher (academic research made practical)
Quality YouTube channels:
- Rob Berger (DIY retirement planning—my favorite)
The DIY investor today has access to resources that didn’t exist even five years ago. The question isn’t whether information is available—it’s whether you’ll take the time to learn it and the discipline to apply it.
Choosing an advisor
If you don’t want to manage your investments yourself, you’ll need to hire a financial advisor (either a human or a robo-advisor). You can choose based on the person or the company, but most of us know more about the companies than we do the advisors who work there. Let’s talk about companies first, since you’ll need to do business with one either way.
Many of the companies I’ve cited previously offer individual financial advice and portfolio management services. In most cases, you can set up a relationship to minimize conflicts of interest if you’re careful to do your homework. But keep in mind, there will almost always be costs involved, as we saw in the last article.
I mentioned that I use Fidelity Investments for my IRA brokerage account. However, I don’t currently have any Fidelity products in my IRA. (Fidelity has excellent products and I’ve owned them before; I just don’t happen to have any right now.) If I wanted to, I could choose to work with a Fidelity Financial Advisor. If I wanted comprehensive financial planning services, I could get that from Fidelity as well, but I would probably go to Ron Blue Trust, a Christian financial planning and advisory firm, or another local Christian firm employing experienced Certified Financial Planners.
Using Fidelity as an example, the range of advisory services available has expanded significantly since 2017:
Fidelity’s 2025 Advisory Offerings:
- Fidelity Go (robo-advisor): $0 fee for balances under $25,000, then 0.35% for balances over $25,000 (lowered from previous tiers)
- Fidelity Personalized Planning & Advice: $0 for planning, optional 0.50% for ongoing discretionary management
- Fidelity Wealth Services: 0.50-1.50% tiered pricing for $50,000+, includes dedicated advisor
- Fidelity Private Wealth Management: Custom pricing for $2 million+, comprehensive family office services
Schwab and Vanguard offer similar tiered structures. The key trend since 2017 is:
- Lower minimums (robo-advisors now start at $0-500 versus $5,000-10,000 in 2017)
- Lower fees (0.25-0.50% versus 0.50-1.00% for comparable service levels)
- More hybrid options combining robo-efficiency with human guidance
- Better digital tools for self-service planning and analysis
As you can see from the graphic, the more you have to invest, the more sophisticated the services become. Fee structures are generally in line with the industry as a whole.
Do your homework
The challenge in working with any large financial firm is choosing a specific advisor. I wouldn’t just work with whoever answered the phone. I’d want someone who is competent, knowledgeable, and experienced—not someone just out of college who recently passed licensing exams (although those are important baseline qualifications).
So how would I determine competence?
For starters, I want someone with quite a few years of experience, not just academic knowledge. I also want them to have managed other people’s money through a couple of recessions and market panics—someone who stayed calm and kept clients on track during 2008, 2020, and 2022. I want to know what their clients think of them. They should be successful with their own finances—”been there, done that,” so to speak.
Finding this information is much easier in 2025:
FINRA BrokerCheck (brokercheck.finra.org): Shows licensing history, employment history, customer complaints, and disciplinary actions. Every broker-dealer must be registered here.
SEC Investment Adviser Public Disclosure (adviserinfo.sec.gov): Shows RIA registrations, Form ADV disclosures, and disciplinary history. Every RIA must file here.
CFP Board’s Verify a CFP® Professional (cfp.net/verify): Confirms CFP certification status, shows any disciplinary actions.
Better Business Bureau: Still relevant for local independent advisors.
Google Reviews / Yelp: Take with a grain of salt, but patterns matter. An advisor with dozens of 1-star reviews warrants investigation.
LinkedIn: Professional history, education, credentials, connections, recommendations.
Personal referrals: Still valuable, but dig deeper—ask specific questions about how the advisor performed during the 2020 and 2022 downturns.
Use all these tools together. Don’t rely on just one source.
Of course, that kind of information can be hard to verify unless you know the advisor personally. Bios and existing client references can be a good start, though remember that advisors will only provide references from happy clients.
An advisor’s certifications may also be informative. The CFP credential is considered by many to be the “gold standard,” but its training is broad. It doesn’t go very deep into retirement planning, investing, retirement income withdrawal strategies, etc. So just because someone is a CFP doesn’t mean they’re an “expert” in any particular area. Again, it comes back to experience.
Beyond the CFP, several specialized credentials have gained prominence in this field:
RICP (Retirement Income Certified Professional): Focuses specifically on retirement income planning—withdrawal strategies, Social Security, longevity risk. Excellent for retirees.
WMCP (Wealth Management Certified Professional): Advanced credential for complex wealth management situations.
ChFC (Chartered Financial Consultant): Similar scope to CFP, different educational path, well-respected.
CFA (Chartered Financial Analyst): Investment-focused, extremely rigorous, though less relevant for comprehensive planning.
EA (Enrolled Agent): Tax specialist designation, valuable when tax planning is a central concern.
For retirees specifically, look for advisors with the RICP designation or demonstrable expertise in retirement income planning, not just accumulation phase planning.
When it comes to personal finance and investing, the Bible puts wisdom at the forefront. I would want an advisor who is wise and prudent about money and life. That pertains to their own finances, which isn’t something you’ll read on a website or resume. I think advisors also have to care about your long-term success and would be willing to compromise their short-term benefit to achieve that. Many strategies and decisions take years to pan out, so you need someone in it for the long haul, not just to make a quick commission.
Before you make a decision, try to get an idea of what their advice might look like. Is it understandable or full of jargon and complex “financial-speak?” Do you understand the why behind their recommendations, not just the what? Are they a good fit for your particular situation? Could you explain their recommendations to your spouse?
You also need to make sure you’re getting the best recommendations for you, not ones the advisor has a personal financial stake in (this is the conflict-of-interest problem). That’s why, generally speaking, I would advise caution when choosing an insurance agent or stockbroker as your advisor. They may be great people, but they’re first and foremost salespeople, so giving unbiased advice may not be their priority.
Finally, if you’re older and nearing or in retirement, you need to work with someone who can help you with things especially relevant to that stage of life—Social Security optimization, estate planning, retirement income distribution, RMD management, Medicare/IRMAA planning, long-term care considerations, and widow/widower planning.
Who NOT to choose
There are a few types I would tend to avoid when selecting an advisor. These are general guidelines, not absolutes, but they apply in most cases:
Friends and family. Many of us have a friend or relative who’s a financial advisor. They may be great at what they do, but as a general rule, I’d look elsewhere. Financial advising and close relationships don’t mix well. If the market drops and you lose significant money, you risk losing a close relationship as well. There’s nothing wrong with listening to their ideas—they may have great suggestions. Just don’t let them manage your money. Better to have someone who can be totally objective.
Your friend or relative’s “guy.” Have you noticed that lots of people have “a guy” and want him to be your “guy?” Recommendations can be a great starting place, but don’t be too quick to choose an advisor based on someone’s recommendation alone. Do your homework since you may not know how closely your friend or relative is paying attention to what their “guy” is actually doing.
People who sell financial products primarily. As a general rule, I would shy away from advisors whose primary compensation is from commission sales. Many people believe financial advisors are legally required to act in their best interest—the “fiduciary standard of care.” However, selling financial products on commission creates conflicts of interest because some financial professionals might suggest products that are better for them than for you. This is particularly true of investment brokers and insurance salespeople, who are almost always paid on commission.
While Regulation Best Interest (implemented in 2020) has improved disclosure and raised the standard for broker-dealers, commission-based conflicts haven’t been eliminated. They’re just better disclosed now.
If you work with a commission-based advisor, you must read and understand the Form CRS (Customer Relationship Summary) they’re required to provide. It discloses conflicts clearly. Pay particular attention to:
- How they’re paid differently for different product recommendations
- What ongoing fees you’ll pay beyond initial commissions
- Whether they’re acting as a broker-dealer, RIA, or both
Even with Reg BI, fee-only RIAs maintain the cleanest conflict-free structure.
People who offer “secret” or “proprietary” investing ideas. We all know the adage, “if it sounds too good to be true then it probably isn’t.” Steer clear of people who claim to have “secret sauce” because they’ve somehow managed to tap into hidden or proprietary ways to grow your money faster than others.
If you’re older, you’ve probably received fancy invitations to free dinners at trendy restaurants where you’ll hear about how the system is about to fail and everyone’s investments will be worthless—except, of course, for the “only solution available to you, which few others know about, that can protect you from ruin.” Then you find out it’s a variable annuity with high complexity and high fees, requiring a day to get through the prospectus.
People with big-name firms, just because of the big name. Many well-known firms have great products and services. But don’t use an advisor with them just because of the firm’s reputation. You’re choosing a person, not an entity. You’ll need to do your homework just like you were interviewing an advisor at a small firm. Don’t assume someone’s a great advisor just because they work for a great company.
People who look the part. Looks can be deceiving. A nice office, designer suit, and fancy car may lead you to think an advisor is much more successful than they are. There’s no guarantee they are, and their finances may be a wreck. You have no way of knowing how well they manage their investments or how much debt they’re carrying. Don’t assume someone who looks the part would be a better advisor than someone with a more modest lifestyle. (I might prefer the latter.)
Take your time
This is an important decision, so take your time. Research them on social media (Facebook and LinkedIn), FINRA’s BrokerCheck, and read all the information on the advisor’s firm’s website. Look for the CFP (or ChFC or RICP) credential, but that’s not the end-all. You want full disclosure from them of the products they recommend, why they recommend them, and how the advisor is paid.
Bottom line: you want someone who is competent and whom you can trust. But you also need to pay attention to costs. You’ll only find that kind of advisor by doing your homework.
The financial advisory landscape is significantly better for consumers in 2025 than it was in 2017:
More options: Robo-advisors, subscription models, project-based planning, and hybrid approaches give you choices beyond traditional 1% AUM relationships.
Better transparency: Reg BI, Form CRS, and increased regulatory scrutiny make it harder for advisors to hide conflicts and costs.
Lower fees: Competition has driven fees down across the board—what cost 1.5% in 2017 might cost 0.75% in 2025.
Better vetting tools: FINRA BrokerCheck, SEC IAPD, CFP Board verification, and online reviews make due diligence easier.
Higher standards: The gap between broker-dealers and RIAs has narrowed somewhat with Reg BI raising the bar.
That said, choosing an advisor remains one of the most important financial decisions you’ll make. The difference between a great advisor and a mediocre one—or between the right advisor for your situation and the wrong one—can easily be hundreds of thousands of dollars over a retirement.
Do your homework. Ask hard questions. Start small. And remember: the goal isn’t finding the most impressive advisor or the one with the fanciest office. It’s finding the one who will genuinely serve your best interests, communicate clearly, and help you make wise decisions during the moments that matter most.
That advisor exists. But you have to do the work to find them.