How to Choose a Financial Advisor in 2025

Choosing a financial advisor can be one of the most important decisions you make for your future. The right advisor helps you build wealth, plan for retirement, protect your assets, and navigate financial decisions with confidence.

But how do you know who’s right for you? In today’s crowded market, finding a trustworthy, experienced, and client-focused advisor takes more than a Google search. Whether you’re a small business owner, freelancer, or working professional, this guide will help you evaluate, compare, and choose the financial advisor who aligns with your goals.

At LJ Elevate, we’re passionate about financial wellness for small businesses. Our expert team created this comprehensive guide to help you make informed decisions when choosing a financial advisor.

Why You Might Need a Financial Advisor

Not everyone needs a financial advisor—but if you answer “yes” to any of the following, it’s time to consider one:

You’re planning for retirement but unsure where to start
You run a small business and need financial structure
You want to invest but don’t understand the market
You’re looking to reduce taxes and optimize your income
You have a significant life change: marriage, inheritance, new job

A great advisor can assist with budgeting, investing, taxes, retirement, and insurance planning—all tailored to your personal goals.

Types of Financial Advisors

Before you choose one, you need to understand the different types:

1. Certified Financial Planner (CFP®)

These professionals are certified and must follow a fiduciary standard, meaning they put your interests first.

2. Registered Investment Advisor (RIA)

RIAs are held to a fiduciary standard and often work independently or with small firms.

3. Broker-Dealers

These advisors can sell financial products and often earn commissions. They follow a “suitability” standard—less strict than fiduciary.

4. Robo-Advisors

Automated investment services with low fees. Ideal for simple portfolios but lack human touch.

Fee Structures: What Will It Cost You?

Understanding how financial advisors get paid is essential to finding one who aligns with your goals. Common models include:

Fee-only: You pay a flat fee, hourly rate, or a percentage of assets under management. No commissions.
Commission-based: Advisor earns from the financial products they sell.
Fee-based: A hybrid of fee-only and commission-based.

Pro Tip: Choose a fee-only advisor to avoid conflicts of interest.

Questions to Ask Before Hiring a Financial Advisor

Here’s a checklist to guide your conversation:

Are you a fiduciary?
What certifications do you hold? (e.g., CFP®, CPA, CFA)
How do you get paid?
What services do you offer?
Do you specialize in small businesses or retirement planning?
Can you provide references or reviews?
What is your investment philosophy?

Evaluate Their Credentials and Background

Use FINRA’s BrokerCheck and the SEC’s Investment Adviser Public Disclosure to:

Verify licenses and certifications
Check for past complaints or disciplinary actions

This step is crucial to protect yourself from fraud or poor advice.

What Services Should Your Financial Advisor Offer?

Your ideal advisor should support your full financial life. Look for services like:

Retirement planning
Investment strategies
Insurance guidance
Budgeting and cash flow management
Tax reduction strategies

Want to save more for retirement? Check out: Best Ways to Save for Retirement

The Importance of a Personalized Financial Plan

No two people have the same goals. A good advisor will:

Understand your lifestyle and risk tolerance
Help you set achievable short-term and long-term goals
Create a diversified portfolio tailored to you

This is especially important for small business owners who need a financial roadmap for both personal and business finances.

How to Know If Your Advisor Is the Right Fit

After your initial meetings, ask yourself:

Do they explain complex topics clearly?
Do they ask about your goals and listen actively?
Do they proactively suggest strategies?
Do they follow up and provide ongoing support?

If the answer is yes, you’re on the right track.

Warning Signs to Watch Out For

Avoid advisors who:

Push products aggressively
Are vague about fees
Lack transparency
Promise unrealistic returns
Don’t listen or tailor advice to you

Combining Advisor Guidance with Online Resources

Even with a great advisor, it’s important to stay informed. LJ Elevate offers free educational resources and financial tools, including:

These insights help you partner effectively with your advisor and track your own progress.

How LJ Elevate Supports Financial Wellness

At LJ Elevate, we empower small businesses and individuals with expert advice, trusted resources, and proven financial strategies.

Our platform helps you:

Choose smart retirement plans
Build robust investment portfolios
Protect your income with insurance plans

Whether you’re just starting or refining your long-term plan, we offer clarity, support, and guidance tailored to your needs.

Final Thoughts: Take the First Step Today

Choosing a financial advisor is a personal and impactful decision. With the right questions, evaluation tools, and trusted resources, you can find an advisor who truly supports your journey.

Your financial wellness is worth the effort. Use this guide to take the next step with confidence—and let LJ Elevate help you along the way.

How to Choose a Financial Advisor: Your 2025 Guide to Smart Financial Planning

Why You Might Need a Financial Advisor