What Kind of Financial Adviser Should I Hire?

Financial planners, wealth managers, investment advisers — the right professional depends on the type of guidance you need

Sandra Block,

AARP

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Published May 15, 2026

in the style of a dating show, a woman stands on one side of a divider. three people sit on the other side.

Choosing the right financial professional depends on the type of guidance you need.

Pete Ryan

Key takeaways

Adviser titles and credentials vary, so vetting and compensation structure matter.
Certified financial planners (CFPs) typically provide a range of services, such as budgeting, retirement planning, tax strategies and estate planning.
Wealth managers specialize in working with high-net-worth clients — typically people with more than $250,000 in investable assets.

When you’re starting out in your career, your finances usually aren’t very complicated. For example, you can arrange to have contributions to your retirement plan deducted from your paycheck and invest them in target-date funds, which automatically adjust your account’s investments as you approach retirement.

But when you’re in your 50s and 60s, that kind of set-it-and-forget-it system may no longer be the right strategy. If you’re nearing retirement, you may need help figuring out whether you’ve saved enough to stop working or when to file for Social Security. If you’ve already retired, you may need advice on how much savings you can withdraw each month without running the risk that you’ll run out of money. Taxes can often get more complicated in retirement, too.

There are plenty of financial professionals who would be eager to help you pinpoint the right strategies for your finances — but there’s also no shortage of underqualified ones.

Anyone can call themselves a financial adviser. Even among legitimate professionals, the designations vary, as do the ways they’re compensated.

Start by assessing the type of help you need. Do you want someone to provide a broad financial plan that will cover everything from withdrawals from your savings to long-term care options? Are you primarily interested in investment advice? Do you want someone to actively manage your portfolio?

Next, look into tools that may already be available to you. Some reputable financial advisers provide certain services, such as a one-time meeting to help you assess where you stand, for free or at a low cost. Moreover, your employer may offer financial wellness programs, like retirement planning, as part of your benefits.

To help narrow your search, here’s a look at three of the most common types of financial advisers.

Certified financial planner: CFPs typically provide a range of services, such as budgeting, retirement planning, tax strategies and estate planning. If you’re newly retired, a CFP can recommend an investment strategy for your nest egg that suits your goals and risk tolerance. They can also help you navigate major life changes that affect your finances, such as marriage, divorce or the loss of a spouse. CFPs are required to act as fiduciaries, which means they must put their clients’ interests above their own.

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There are more than 109,000 CFPs in the U.S. To earn the designation, an individual must hold a bachelor’s degree or higher from an accredited college or university, complete a course of study on financial planning through a CFP Board Registered Program, pass a rigorous exam, and complete either 6,000 hours of professional experience related to the financial planning process or 4,000 hours of apprenticeship experience that meets additional requirements and fulfill ethics requirements. The CFP Board offers a search tool that you can use to look for a CFP in your area. Many offer free consultations, allowing you to determine whether the individual is a good fit for your goals and values. You can also use the consultation to find out about the services the financial planner provides and how often you’ll meet with them.

Consider looking at a few CFPs before selecting one. The Financial Planning Association’s website provides a list of questions to ask when vetting financial planners. A big one: Find out how the planner gets paid.

Many planners charge a fee based on a percentage of the investments they are managing on your behalf. In most cases, the fees are tied to the amount you have invested, with rates declining as your investments grow. For example, you might pay a 1 percent fee for an account valued up to $1 million, or a 0.75 percent fee for an account valued at between $1 million and $5 million.

Other planners charge an hourly rate, which may be appropriate if you’re comfortable managing your money but want someone to periodically review your portfolio to make sure you’re on track.

In addition, find out whether the planner receives a commission for recommending specific products, versus a fee-only planner who receives all of their compensation directly from their clients. Supporters of the fee-only model say it reduces the potential for conflicts of interest.

Wealth manager: Like CFPs, wealth managers provide financial advice on a variety of areas, but they specialize in working with high-net-worth clients — typically people with more than $250,000 in investable assets.

Many wealth managers get a Wealth Management Certified Professional designation, although it’s not required. To obtain one, an individual must complete three closed-book final exams offered by The American College of Financial Services, focusing on goal-based planning, efficient investment portfolios and strategic wealth management. They must also comply with a code of ethics. To maintain the designation, they must receive annual recertification. Some wealth managers are also CFPs.

You can search for a Wealth Management Certified Professional in your area on the American College of Financial Service’s website. The tool lets you search for advisers with other designations as well. Your bank or credit union may also offer wealth management services.

Registered investment adviser: Investment advisers focus on helping you manage your portfolio, usually for a fee based on the total value of your assets. An investment adviser may also open an account for you with a brokerage firm that they’ll use to buy and sell securities on your behalf.

Registered investment advisers (RIAs) are registered with the U.S. Securities and Exchange Commission (SEC) or state securities regulators and have a fiduciary duty to act in the best interest of their clients. They must pass an exam that consists of 130 questions and 10 unscored questions on topics such as balance sheets, business cycles, investment strategies and types of securities. They also need to complete continuing education. Their clients tend to be wealthy individuals with complex investment portfolios.

You can check an RIA’s credentials and disciplinary history at Investor.gov, a website provided by the SEC. You can also check an adviser’s background at brokercheck.finra.org.

Keep your guard up

Whoever you choose to hire, watch out for bad actors. Specifically, steer clear of free lunch and dinner investment seminars for people over 50, which are often intended to promote a specific product or service that may not be appropriate for you.

Avoid advisers who use high-pressure sales tactics or get you to make decisions on the spot. Exaggerated claims, such as asserting that an investment provides big returns with no risk, are also red flags.

For due diligence, check out an adviser’s license and professional history with your state securities regulator. You can find yours using the North American Securities Administrators Association’s search tool.

The key takeaways were created with the assistance of generative AI. An AARP editor reviewed and refined the content for accuracy and clarity.

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Sandra Block has covered personal finance for more than two decades. She was a senior editor at Kiplinger Personal Finance and a reporter for USA TODAY. She is the coauthor of The Busy Family’s Guide to Money and Easy Ways to Lower Your Taxes: Simple Strategies Every Taxpayer Should Know.