Best Financial Advisors: Find the Right One for You
The best financial advisor is one that helps you set and achieve financial goals in a way that fits your needs and budget.
You have options that range from online services called robo-advisors to a variety of human specialists. You can even have it both ways: Get started on long-term goals like saving for retirement with a low-cost robo-advisor, then consider hiring a human advisor later for comprehensive planning.
Here’s a quick look at the types of help you can choose from. Or, jump ahead to find a financial advisor from among our top picks.
Pick the best type of financial advisor for you
If you’re not sure which type of advisor suits you, take a look at the highlights:
Robo-advisors
These online services pick and maintain an investment portfolio for you using computers, which lowers their overhead. Some offer access to human advisors for when you have questions.
- Low cost, easy entry: Fees start as low as 0.25% of your balance and most charge 0.50% or less. Many have no or low account minimums, so you can start investing with a small amount of money.
- Good when: You want to get started working on financial goals like retirement but don’t want to pay a lot.
Human financial advisors
Many different types of specialists focus on helping you reach financial goals. Finding a fee-only certified financial planner gives you a good combination of specialized training and no conflicts of interest.
- Higher cost, minimums: The median financial advisor fee is about 1% of the assets managed for you, although some charge by the hour or have a set rate per service. Some require a minimum balance, such as $250,000 in assets to manage.
- Good when: You want specialized services like estate planning; you’re about to make a big life change, like retiring or getting married; your situation is complex.
Best robo-advisors
We reviewed the top robo-advisors to find the ones that offer the most robust tools and management for the lowest cost and lowest account minimums. Here are our picks for top overall robo-advisors, or you can view our full roundup of the best robo-advisors.
Fees
0.25%
management fee
Account minimum
$0
Promotion
Up to 1 year
of free management with a qualifying deposit
The bottom line
Betterment has maintained its status as the largest independent robo-advisor for a reason: The company offers a powerful combination of goal-based tools, affordable management fees and no account minimum.
Show pros & cons
Pros
No account minimum.
Fractional shares limit uninvested cash.
Robust goal-based tools.
Cons
No direct indexing.
Fees
0.25%
management fee
Account minimum
$500
Promotion
$5,000
amount of assets managed for free
The bottom line
Wealthfront has built client trust by offering free management on the first $5,000 — with NerdWallet’s promotion — but the company’s direct indexing service really shines, adding as much as 2% to annual investment performance for eligible accounts.
Show pros & cons
Pros
First $5,000 managed free (NerdWallet promotion).
Low ETF expense ratios.
Daily tax-loss harvesting.
Direct indexing on accounts over $100,000.
Automatic rebalancing.
Cons
No fractional shares.
No large-balance discounts.
Fees
0.40%-0.50%
management fee
Account minimum
$0
Promotion
Up to $1,000
cash bonus with a qualifying deposit
The bottom line
Wealthsimple’s $0 minimum balance requirement, hands on human help and its no-fuss, streamlined design make it an attractive place for beginners to start their investing journey. But the company’s real standout feature among the robo-advisor competition is its lineup of socially responsible investment (SRI) portfolios, a refreshing addition for values-based investors. Another unusual offering that customers with taxable investment accounts will appreciate is free free tax-loss harvesting, no minimum account balance required.
Show pros & cons
Pros
Free access to human advisers
Free portfolio analysis
Free tax-loss harvesting
Socially-responsible investment options
No account minimum
Cons
Higher account management fees
Limited free-management promotion
Limited personal finance tools
Fees
0.25%
management fee
Account minimum
$0
Promotion
Up to $750
cash bonus with qualifying deposit
The bottom line
This advisor markets itself to women and takes a goal-focused approach that factors in women’s lower incomes, lifetime earnings and longer lifespans. With its $0 account minimum, competitive advisory fees (ranging from 0.25% - 0.5% of assets) and unlimited access to financial advisors (Premium clients can talk to CFPs), Ellevest is an appealing choice for investors of any gender.
Show pros & cons
Pros
Low account minimum and fees
Goal-focused investing approach
Portfolio mix that factors women’s needs
Cons
Few accounts supported
No tax-loss harvesting
Fees
0.25%
management fee
Account minimum
$0
Promotion
Up to 1 year
of free management with a qualifying deposit
The bottom line
Betterment has maintained its status as the largest independent robo-advisor for a reason: The company offers a powerful combination of goal-based tools, affordable management fees and no account minimum.
Show pros & cons
Pros
No account minimum.
Fractional shares limit uninvested cash.
Robust goal-based tools.
Cons
No direct indexing.
Fees
0.25%
management fee
Account minimum
$500
Promotion
$5,000
amount of assets managed for free
The bottom line
Wealthfront has built client trust by offering free management on the first $5,000 — with NerdWallet’s promotion — but the company’s direct indexing service really shines, adding as much as 2% to annual investment performance for eligible accounts.
Show pros & cons
Pros
First $5,000 managed free (NerdWallet promotion).
Low ETF expense ratios.
Daily tax-loss harvesting.
Direct indexing on accounts over $100,000.
Automatic rebalancing.
Cons
No fractional shares.
No large-balance discounts.
Fees
0.40%-0.50%
management fee
Account minimum
$0
Promotion
Up to $1,000
cash bonus with a qualifying deposit
The bottom line
Wealthsimple’s $0 minimum balance requirement, hands on human help and its no-fuss, streamlined design make it an attractive place for beginners to start their investing journey. But the company’s real standout feature among the robo-advisor competition is its lineup of socially responsible investment (SRI) portfolios, a refreshing addition for values-based investors. Another unusual offering that customers with taxable investment accounts will appreciate is free free tax-loss harvesting, no minimum account balance required.
Show pros & cons
Pros
Free access to human advisers
Free portfolio analysis
Free tax-loss harvesting
Socially-responsible investment options
No account minimum
Cons
Higher account management fees
Limited free-management promotion
Limited personal finance tools
Fees
0.25%
management fee
Account minimum
$0
Promotion
Up to $750
cash bonus with qualifying deposit
The bottom line
This advisor markets itself to women and takes a goal-focused approach that factors in women’s lower incomes, lifetime earnings and longer lifespans. With its $0 account minimum, competitive advisory fees (ranging from 0.25% - 0.5% of assets) and unlimited access to financial advisors (Premium clients can talk to CFPs), Ellevest is an appealing choice for investors of any gender.
Show pros & cons
Pros
Low account minimum and fees
Goal-focused investing approach
Portfolio mix that factors women’s needs
Cons
Few accounts supported
No tax-loss harvesting
Best human financial advisors
If a human financial advisor fits your needs, consider these factors:
Costs: Understand how the advisor is compensated, and by whom. Look for a fee-only planner, not someone who earns commissions for selling you products. (Read more about the difference between fee-only and fee-based planners.)
Standards: Ask if the advisor follows a fiduciary standard, which requires acting in the best interest of the client.
Qualifications and background: Check out the person or firm’s qualifications and background using Form ADV.
Ready to get started? NerdWallet suggests these organizations as sources of fee-only, fiduciary planners. All of them have a “find an advisor” tool on their sites:
