BEST OF
Best Financial Advisors of May 2021
When searching for the best financial advisors, you’ll find options that range from automated investment management services called robo-advisors to traditional, in-person financial advisors. In the middle are online financial advisors and financial planning services: These companies offer many of the services of a traditional financial advisor, but operate online to reduce fees.
Here's how to find an advisor who works for your situation:
1. Keep your budget in mind. Simple, digital-only services will be less expensive; holistic financial planning will be more. It's a good idea to know what you're comfortable spending before you dive in.
2. Decide what services you need. Maybe you just want help picking investments, or maybe you need advice on more advanced topics, like estate planning or insurance needs. These requirements will help you choose what type of financial advisor you need — typically, a robo-advisor is a good fit for investment management, but you'll need an online planning service or traditional human financial advisor for advanced planning. (View our picks for the best robo-advisors.)
3. Choose whether you want in-person or online advice. If you don’t mind meeting with your advisor virtually, you'll often save money with an online service. These services also typically have lower account minimum requirements than traditional investment advisors. No matter what option you choose, it's always important to check qualifications and make sure they follow a fiduciary standard, which means your needs come first.
» I want to work with a local advisor. Find a financial advisor near me
If you're still not sure how to find the right financial advisor for you, it often makes sense to start with a robo-advisor or online planning service — you can always hire a traditional financial advisor if your situation grows more complex. Below are our picks for the best online financial advisors.
When searching for the best financial advisors, you’ll find options that range from automated investment management services called robo-advisors to traditional, in-person financial advisors. In the middle are online financial advisors and financial planning services: These companies offer many of the services of a traditional financial advisor, but operate online to reduce fees.
Here's how to find an advisor who works for your situation:
1. Keep your budget in mind. Simple, digital-only services will be less expensive; holistic financial planning will be more. It's a good idea to know what you're comfortable spending before you dive in.
2. Decide what services you need. Maybe you just want help picking investments, or maybe you need advice on more advanced topics, like estate planning or insurance needs. These requirements will help you choose what type of financial advisor you need — typically, a robo-advisor is a good fit for investment management, but you'll need an online planning service or traditional human financial advisor for advanced planning. (View our picks for the best robo-advisors.)
3. Choose whether you want in-person or online advice. If you don’t mind meeting with your advisor virtually, you'll often save money with an online service. These services also typically have lower account minimum requirements than traditional investment advisors. No matter what option you choose, it's always important to check qualifications and make sure they follow a fiduciary standard, which means your needs come first.
» I want to work with a local advisor. Find a financial advisor near me
If you're still not sure how to find the right financial advisor for you, it often makes sense to start with a robo-advisor or online planning service — you can always hire a traditional financial advisor if your situation grows more complex. Below are our picks for the best online financial advisors.
Summary of Best Financial Advisors of May 2021
| Broker | NerdWallet Rating | Commissions | Promotion | Account Minimum | Learn More |
|---|---|---|---|---|---|
 Vanguard Personal Advisor Services on Vanguard's website | 0.30% management fee | None no promotion available at this time | $50,000 | on Vanguard's website | |
 Facet Wealth on Facet Wealth's website | $100 and up per month (free initial consultation) | 15% off one year of financial planning (requires annual payment upfront) | $0 | on Facet Wealth's website | |
 Zoe Financial on Zoe Financial's website | Varies by advisor | None no promotion available at this time | $0 | on Zoe Financial's website | |
 Betterment Premium on Betterment's website | 0.40% management fee | Up to 1 year of free management with a qualifying deposit | $100,000 | on Betterment's website | |
 Harness Wealth on Harness Wealth's website | 1% per year | None no promotion available at this time | $250,000 | on Harness Wealth's website | |
 Personal Capital on Personal Capital's website | 0.49% - 0.89% management fee | None no promotion available at this time | $100,000 | on Personal Capital's website | |
 Schwab Intelligent Portfolios Premium™ | $30 monthly | None no promotion available at this time | $25,000 | Read review |
on Vanguard's website
Vanguard Personal Advisor Services
Fees
0.30%
management fee
Account Minimum
$50,000
Promotion
None
no promotion available at this time
on Vanguard's website
on Facet Wealth's website
Facet Wealth
Fees
$100 and up
per month (free initial consultation)
Account Minimum
$0
Promotion
15% off
one year of financial planning (requires annual payment upfront)
on Facet Wealth's website
on Zoe Financial's website
Zoe Financial
Fees
Varies by advisor
Account Minimum
$0
Promotion
None
no promotion available at this time
on Zoe Financial's website
on Betterment's website
Betterment Premium
Fees
0.40%
management fee
Account Minimum
$100,000
Promotion
Up to 1 year
of free management with a qualifying deposit
on Betterment's website
on Harness Wealth's website
Harness Wealth
Fees
1%
per year
Account Minimum
$250,000
Promotion
None
no promotion available at this time
on Harness Wealth's website
on Personal Capital's website
Personal Capital
Fees
0.49% - 0.89%
management fee
Account Minimum
$100,000
Promotion
None
no promotion available at this time
on Personal Capital's website
Want to compare more options? Here are our other top picks:
Disclosure: The author held no positions in the aforementioned securities at the time of publication.
Last updated on April 20, 2021
Methodology
NerdWallet’s comprehensive review process evaluates and ranks the largest U.S. brokers and robo-advisors by assets under management, along with emerging industry players, using a multifaceted and iterative approach. Our aim is to provide an independent assessment of providers to help arm you with information to make sound, informed judgements on which ones will best meet your needs.
DATA COLLECTION AND REVIEW PROCESS
We collect data directly from providers, and conduct first-hand testing and observation through provider demonstrations. Our process starts by sending detailed questionnaires to providers to complete. The questionnaires are structured to equally elicit both favorable and unfavorable responses from providers. They are not designed or prepared to produce any predetermined results. The questionnaire answers, combined with product demonstrations, interviews of personnel at the providers and our specialists’ hands-on research, fuel our proprietary assessment process that scores each provider’s performance across more than 20 factors. The final output produces star ratings from poor (one star) to excellent (five stars). Ratings are rounded to the nearest half-star.
RATING FACTORS
Evaluations vary by provider type, but in each case are based upon the weighted averages of factors that include but are not limited to: advisory and account fees, account minimums and types, investment selection, investment expense ratios, trading costs, access to human financial advisors, educational resources and tools, rebalancing and tax minimization options, and customer support including branch access, user-facing technology and mobile platforms.
Each factor can involve evaluating various sub-factors. For instance, when gauging the investment selections offered by robo-advisors, 80% of the score is based on the potential for diversification (how well-diversified a resulting portfolio of investments could be) combined with the availability of specialty portfolios and level of customization for investors. Expense ratios form an additional 10% of the score, and low or no management fee the remaining 10%.
FACTOR WEIGHTINGS
The weighting of each factor is based on our team’s assessment of which features are the most important to consumers and which ones impact the consumer experience in the most meaningful way. The factors considered, and how those factors are weighted, change depending upon the category of providers reviewed.
Provider categories include: Best Brokers for Stock Trading, Best Brokers for Beginners, Best Brokers for Day Trading, Best Brokers for Options Trading, Best Discount Brokers, Best Brokers for Free Trading, Best Investment Apps, Best Brokers for Penny Stocks, Best IRA Brokers, Best Robo-Advisors, Best Financial Advisors, Best Real Estate Platforms, Best Brokers for ETFs and Best Brokers for Mutual Funds.
INFORMATION UPDATES
Writers and editors conduct our broker and robo-advisor reviews on an annual basis but continually make updates throughout the year. We maintain frequent contact with providers and highlight any changes in offerings.
THE REVIEW TEAM
The review team comprises seasoned writers, researchers and editors who cover stocks, bonds, mutual funds, index funds, exchange-traded funds, alternative investments, socially responsible investing, financial advisors, retirement and investment strategy on a daily basis. In addition to NerdWallet, the work of our team members has been published in The New York Times, The Washington Post, Forbes, USA Today, Bloomberg News, Nasdaq, MSN, MarketWatch, Yahoo! Finance and other national and regional media outlets.
The combined expertise of our Investing team is infused into our review process to ensure thoughtful evaluations of provider products and services from the customer perspective. Our writers and editors combine to have more than 70 years of deep experience in finance, ranging from a former Wall Street Journal reporter to a former senior financial advisor at Merrill Lynch.
CONFLICTS OF INTEREST
While NerdWallet does have partnerships with many of the reviewed providers, we manage potential conflicts of interest by maintaining a wall between our content and business operations. This wall is designed to prevent our writers and the review process from being influenced or impacted by our business partnerships. This way, all reviews can provide an unbiased review that serves the interests of our users. For more information, see NerdWallet’s editorial guidelines.
To recap our selections...
NerdWallet's Best Financial Advisors of May 2021
Frequently asked questions
A financial advisor helps people manage their investments, plan for retirement and save money for their financial goals. Financial advisors also suggest strategies, investments or other assets that will help their clients’ money grow.
Financial advisors come in many varieties, from in-person advisors to online financial services and robo-advisors. They all serve the same purpose: to help you figure out what to do with your money. Here’s more about what financial advisors do.
If you find taking care of your finances and planning for the future to be overwhelming, a financial advisor can certainly help. If you feel confident investing your money, you may not need one.
While financial advisors aren’t for everyone, they can help you navigate the tricky and often confusing waters of how to organize your finances. If you recently had a big life change (you got married, had a child, lost a family member), it can be helpful to work with a financial advisor to help you understand your new financial landscape.
This really depends on what you’re willing to spend, and what products you’re looking for. There are a few robo-advisors — digital investment management services — that charge no management fees. Others charge around 0.25% of your account balance.
Then, there are online planning services and traditional in-person financial advisors. Online planning services typically charge a management fee that starts at around 0.30%, or a flat annual or monthly fee. Traditional financial advisors will often charge 1% of your assets or a flat fee — for example, you might pay $2,000 for a comprehensive plan.
We have a full overview of financial advisor fees here.
The difference between a financial advisor and a financial planner is like the adage about squares and rectangles: A financial planner is an advisor, but an advisor isn’t necessarily a planner.
Financial advisors are a larger category of individuals who help people manage their finances. A Certified Financial Planner has gone through extensive training, taken an exam and is legally obligated to act in their client’s best interest. It is important when you are looking for a financial advisor to thoroughly vet them, no matter what they call themselves.
What you look for in a financial advisor will have to do with your needs and priorities. Online advisors are (for the most part) less expensive, but some people prefer to meet with a local advisor; a face they can come to know and trust.
It might also depend on what you want your advisor to do. For example, if you’re concerned with creating a socially responsible portfolio, you might prioritize finding an advisor who knows that strategy. But if staying within your budget comes first, and if you’re just starting to build an investment account, it often makes sense to go with a low-fee robo-advisor.
Learn more about how to choose a financial advisor.
What sort of service you choose to take care of your money is a matter of your needs and comfort level.
In-person advisors have the advantage of being able to develop a relationship with you over time. They might know more about your family, your job and your life in general — thus giving them better insight into your financial needs. Unfortunately, they’re typically more expensive than a robo-advisor or online planning service.
Robo-advisors are a great choice if you only want investment management. If you need more comprehensive financial planning, many online planning services offer dedicated advisors who can give you customized help with a lower price tag than in-person advisors. Many employ CFPs, and you’ll meet with the advisor virtually via phone or video.
A financial advisor’s value depends on what they bring to your financial life. If you don’t have a lot of assets to manage, it might be better to try to manage them yourself or use a robo-advisor. As your assets grow and become more complicated — maybe you own a house, have an investment portfolio and are trying to pay off debt — it can be worthwhile to seek help from either a traditional or online advisor.
We recommend working with financial advisors who are fee-only fiduciaries. Fee-only advisors charge flat fees or a percentage of the assets they manage; they do not accept commissions for recommending specific investments. (Note: This is not the same as fee-based advisors, who may earn commissions on products they sell and charge clients a fee or percentage of assets.) A fiduciary is legally obligated to act in the client's best interest. Many financial advisors are also investment advisors, meaning they are registered with a regulating body such as their state or the SEC.
The best financial advisor for you is the one that meets your needs, both in terms of services offered and the cost of advice. There are several different types of financial advisors too, so be sure to understand what their designations are and how they can best help you. Is it important that you can speak with your advisor in person? If so, you may want to consider a financial advisor near you who knows both your face and your community. Is cost the biggest driving factor? If you don't mind meeting with an advisor virtually — via phone or video conference — online financial advisors can save you money and provide the comprehensive financial planning and investment management you need.
Becoming a financial advisor can be a lucrative move — in 2019 the median annual salary for personal financial advisors was $87,850 — but what’s the process actually like? While there are technically no requirements to call yourself a financial advisor, some relevant education will help you reach your goal. Here’s how to become a personal financial advisor:
1. Earn a bachelor’s degree. While not always required, many personal financial advisor job postings list it as a desired qualification. It helps to have a degree in finance, economics or another related topic.
2. Gain experience. If possible, try to find an internship that will help you get some firsthand experience. Many advisory firms also offer on-the-job training for the first year a new advisor is working with them.
3. Get licensed and/or certified. Depending on the types of products you plan to sell or the specific field you’d like to work in, you may need to earn a license or certification. For example, if you plan on selling insurance, you’ll likely need to get licensed by a state board. Having a certification pertinent to your field can help you grow your reputation, gain more clients and earn a higher salary.
