Best Financial Advisors: Find the Right One for You
The best financial advisors help you understand your money situation, diagnose potential problems and plan for the future. Options range from streamlined, low-cost digital services called robo-advisors to specialized human advisors.
Read more about how to find the right type for you or jump ahead to our picks for best financial advisors.
Pick the best financial advisor for you
Robo-advisors are an attractive choice for many people. These digital services use computers to reduce overhead, so they can charge low fees and you can start with small amounts of money. They help you choose an investment mix based on your goals and risk tolerance, then maintain the portfolio for you. The best robo-advisors even work to lower your tax bill when possible.
Many robo-advisors also offer a hybrid level of service, which gives you access to human advisors when you have questions. The fee or account minimum may be higher than basic robo services, but they’re still typically cheaper than a human advisor.
If your situation is complex or you want highly personalized planning, such as estate planning, you may want a human specialist. Here’s a cheat sheet on which type is the best financial advisor for you:
Human Advisors |
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|---|---|
| Fees: 0.25% to 0.89% | Fees: 1% to 2% |
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Best digital 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 top picks:
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
0.50%
management fee
Account minimum
$0
Promotion
$50
cash bonus with deposit of at least $1,000 in first 30 days
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
» More: See our full list of best robo-advisors
Best human financial advisors
If you decide on a human financial advisor, your best bet is one who charges a set fee — per hour, year or plan, or a percentage of assets. You want a fee-only advisor rather than someone who earns commissions from selling you products.
Also, ask if your advisor follows the fiduciary standard, which requires acting in the client’s best interest.
To search for an advisor, check out organizations like National Association of Personal Financial Advisors, Financial Planning Association, XY Planning Network, Alliance of Comprehensive Planners and Garrett Planning Network.
» Still not sure which kind is the best financial advisor for you? Our guide explains how to choose a financial advisor.
