Can you share your experience with using a financial advisor? What advice would you give to someone considering hiring one?

Question

Hiring a financial advisor is a crucial decision that can significantly impact your financial future. This article presents valuable insights from experts in the field, offering guidance on selecting the right advisor for your specific needs. From setting clear goals to understanding the importance of specialized expertise, these tips will help you make an informed choice in your financial journey.

Ted White · Answer

I work as a financial planner, so I can provide a unique perspective on what people should think about before hiring a financial advisor. Among the things I would recommend are:
1) Have a clear goal for what you want to achieve in working with a financial advisor. Are you worried about whether you're on course to retire by a certain age? Are you on the cusp of retirement and you need help figuring out how to draw down your investment accounts? Or are you trying to find out if you can buy a more expensive house without wrecking your financial future? While I can help clients narrow down their goals, having a general idea of what you need is helpful in finding the right planner. For instance, if you want to check your retirement readiness, but you don't want to turn over control of your finances to an advisor you barely know, then hire an hourly or project-based financial planner instead of an assets under management (AUM) or commission advisor. A lot of people assume that all financial advisors receive a commission or charge a management fee, but that's not true.
2) Like doctors, lawyers, and other professional service providers, financial advisors come in many shapes and sizes, with different areas of expertise. There are financial planners who specialize in working with certain groups or demographics. For instance, there is a growing group of advisors that work with younger professionals using a subscription fee model. Other planners might focus on people in the military or those with Federal government jobs. Since the start of the pandemic, more and more advisors work with clients across the country remotely. We're in an era when there are many different ways of accessing financial advice, so don't just settle for the advisor at your local bank.
3) Understand as a potential client that being a good financial advisor goes far beyond investments. In fact, if you're hiring a financial advisor because you think they will "beat the market", then you're probably going to be sorely disappointed. Good financial advisors are going to help align money with goals and values, and they want to bulletproof your financial plan as much as possible, which means not just focusing on highest returns. It's important that you manage your own expectations.

Nicolas Breedlove · Answer

As a product company, inventory and seasonality can be significant challenges. A good advisor synchronized our cash forecast with our build schedule and established a six-month operating reserve. The first thing I check is whether they have worked with inventory-heavy businesses. I also ask, "Will you show me the best, base, and worst-case scenarios, along with their cash impact?"
A quarterly cash-flow review, a simple buy-sell agreement check with our attorney, and an annual fee audit are essential. Keep fund costs low and rebalancing rules clear. Meet before making big purchases, not after. Hire an advisor who understands your seasonality and schedules accordingly.

Jimmy Fuentes · Answer

With a two-plus-decades-long career working as a third-party beneficiary in the field of private lending, I have engaged with hundreds of financial advisors on behalf of my borrowers. The quality fluctuates greatly, and I have seen both brilliant partnerships and financial disasters.
The most excellent advisor I worked with rearranged a restructuring of the entirety of a client's portfolio and was able to set him up with a bridge loan that conventional banks could not otherwise lend to him. She transferred resources in such a way as to provide strategic liquidity while preserving his investment objectives. The change was phenomenal.
On the other side, at times I have witnessed advisors pushing products that are not really necessary. One of my borrowers was persuaded by his advisor to liquidate his performing real estate investments to purchase whole life insurance. His obvious response to that decision was that it wiped out his land portfolio during the recent rise in California rents, which is hard to look at objectively.
What sets the better advisors apart from the mediocre ones: they will obtain a picture of your overall financial situation before making a suggestion. An advisor assisted me in restructuring a portfolio by taking a lot of time to understand my client, his goals, risk-bearing ability, and timeline expectations before making suggestions.
Red flags include the use of pressure and sales tactics when encouraging customers to purchase their products, over-commissioning, and lack of willingness to clarify the fee structure. Quality advisors will have clear fees and written investment policy statements outlining their approach.
I would recommend hiring more than one advisor, making sure that they are vetted through FINRA BrokerCheck, and ensuring they are fiduciaries rather than just suitable standard practitioners. A fiduciary must act in your best interest, while a suitable standard only requires not recommending something that is totally inappropriate.

Ajinkya Thete · Answer

Look, I'll be straight with you - I was stubborn about getting a financial advisor for years. I thought I could handle it all myself, you know? Big mistake. Once my business hit around seven figures, the complexity just... it got overwhelming. Tax strategies, retirement planning while reinvesting in growth, managing cash flow across multiple ventures - there's only so many YouTube videos you can watch before you realize you need a pro.
My advice? Don't wait as long as I did. But also don't just grab the first advisor who cold-calls you. Interview at least three, ask about their experience with entrepreneurs specifically - not just regular W-2 folks. The right advisor pays for themselves through tax savings alone. Mine probably saved me six figures last year just by restructuring how I pay myself. Worth every penny.

Nitin Lilani · Answer

Working with a financial advisor taught me that it's less about big investment moves and more about everyday clarity. I used to spend too much time second-guessing small decisions — save here, invest there — and it created unnecessary stress. Having someone map things out objectively freed me from that constant cycle of overthinking.
One small but valuable tip I picked up was to separate short-term and long-term goals clearly. Once that was in place, choices became simpler — I knew what money was untouchable and what I could use more flexibly.
If you're considering hiring an advisor, don't focus only on returns or fees. Pay attention to how well they understand you and whether their advice feels practical. A good advisor should make your financial life lighter, not heavier.

Soumya Kalluri · Answer

During Dwij's second year, we hired a financial advisor specializing in social enterprises after struggling with cash flow management despite growing sales. Initially, I hesitated because advisor fees seemed like an unnecessary expense for a small business. However, our advisor identified that we were reinvesting profits too quickly into inventory without maintaining adequate working capital reserves.
The advisor restructured our financial planning, establishing separate accounts for operational expenses, inventory purchases, and emergency funds. More importantly, she helped us understand seasonal demand patterns we hadn't recognized. We learned that sustainable product sales peaked during specific months, allowing us to plan inventory and marketing spend accordingly.
Within eight months, our cash flow stability improved by 231%, eliminating the stress of month-end payment struggles. The unexpected benefit was gaining confidence in making larger business decisions because we finally understood our financial position clearly. The key insight was finding an advisor who understood our industry rather than choosing the cheapest option. Other small business owners should prioritize advisors with relevant sector experience over general financial planners.

Kevin Heimlich · Answer

I even delayed employing a financial advisor for as long as I could. I had this notion that it was only meant for those who had already hit it big and not for someone like me who was still deep in the trenches of building a business. However, the financial concerns kept me sleepless when The Ad Firm started its serious growth. I was always concerned about how we could manage our cash flow, plan our taxes, and save for my own future without reinvesting all the money back into the company. I came to understand that I was in too deep and sought the help of a professional.
The greatest advantage did not only consist in the selection of investments; it was him putting in place a distinct framework that separated my personal financial stability and placed it as unrelated to the riskiness of the company. That clarity helped me feel confident to concentrate on growing the business rather than lying in bed worrying about money.
The only recommendation I would give to anyone thinking of doing this is to find someone who will speak to you as a person, not as a textbook. Unless you can sit down and talk to an advisor who does not overwhelm you with complex jargon and acronyms, walk away. A good advisor is able to simplify complex strategies into simple and easy-to-comprehend concepts. There is no reason to be intimidated or lost about your personal financial plan. You must be capable of having a genuine discussion about it. Clearly communicating how you will build the trust to create a partnership like this is how you do it. It not only keeps both sides of the relationship on the same page, but it also makes sure you both trust and believe in the plan you are creating together.

Eric Roach · Answer

I've worked on both sides—as a Wall Street M&A advisor managing Fortune 500 clients' multi-billion-dollar portfolios, and now helping retail investors protect wealth with precious metals. Most financial advisors I encountered during my investment banking years were excellent at growing assets during bull markets but terrible at preserving wealth during crises.
The biggest red flag is advisors who can't explain what happened to their clients' portfolios during 2008 or 2000-2002. I had a 59-year-old executive come to me after her advisor lost 40% of her retirement funds in 2022's inflation spike—we carved out 12% into physical gold and silver, which outperformed her traditional 60/40 portfolio by $141k over five years.
Here's my test: ask potential advisors about alternative assets beyond stocks and bonds. Most will immediately pitch REITs or commodities ETFs, but few understand physical precious metals or self-directed IRAs. The 70-year-old widower whose rental property got destroyed by a hurricane was able to rebuild because 15% of his portfolio sat in physical silver—his previous advisor called that "barbarous" until silver gained 35% while his equity holdings tanked.
Don't hire anyone who puts 100% of your wealth at the mercy of paper assets controlled by institutions. The best advisors I've seen understand that true diversification means owning something you can physically hold when the financial system gets fragile.

Tom Malesic · Answer

I've worked with a financial advisor for 20 years, and my biggest piece of advice is to take your time before choosing one. Don't just go with the first person you meet—make sure they have a clear investment process they can explain to you in plain language. A good advisor should be able to walk you through how they make decisions and what that means for your money.
Just as important, they should take the time to understand you—your tolerance for risk, your short- and long-term goals, and what you want your financial future to look like. For me, having an advisor who listened and tailored recommendations around my comfort level gave me confidence and reduced a lot of stress about investing.
In short, don't rush the decision. Find someone who has both a solid process and a genuine interest in helping you reach your goals.

Michelle Robbins · Answer

My husband and I started using a financial advisor earlier this year when he met one through networking for his job. We were surprised to receive such a warm welcome, as we had always thought that one had to be wealthy in order for a financial advisor to work with you.
We were also delighted to find that our financial advisor takes a holistic approach to financial counseling, digging into your relationship with money, your level of financial literacy, and your goals, to provide a customized game plan on how to get to where you want to be. In just a few months, he has successfully guided us to virtually eliminate our large amount of credit card debt, as well as get much better protection on our home and auto insurance, thanks to having an in-house insurance broker.
The advice I would give to someone considering hiring a financial advisor is to determine if they have minimum financial requirements and what these are. Additionally, request a no-fee initial informational meeting so you can assess whether their specific services and strategies align with your goals.

Ydette Macaraeg · Answer

Working with a financial advisor proved valuable once clear expectations were set. Initially, it was easy to assume the advisor would manage everything, but the process worked best when treated as a partnership. The advisor provided guidance on structuring real estate investments for tax efficiency and balancing them with retirement planning, but decisions still required active involvement.
For anyone considering hiring a financial advisor, it is recommended to interview multiple advisors and pay close attention to how they are compensated—fee-only structures reduce conflicts of interest. Most importantly, come prepared with specific goals rather than vague hopes. The relationship is most effective when the advisor helps refine and execute a plan you already care about, rather than defining success on their terms.

Tarek El Ali · Answer

When I initially collaborated with a financial planner, what impressed me was the precision they applied to areas where I felt like I already knew what was happening. They did not merely speak in terms of numbers; they assisted in connecting financial objectives to everyday priorities and choices. Such as saving for a house or investing for the long term no longer seemed so daunting. I also learned how valuable it is to have an advisor who teaches you rather than simply doing things for you behind your back. My recommendation to anyone thinking of hiring one is to seek openness in how they're being paid and ensure they listen more than they speak. The proper advisor will empower you, not make you reliant.

Reem Khatib · Answer

Financial advisors can be great for long-term planning, but when it comes to IRS issues, they often lack the specialized knowledge needed. One of our clients had followed a financial advisor's guidance on an installment plan, only to find themselves deeper in debt because the advisor didn't understand the IRS Fresh Start Program. When we stepped in, we were able to negotiate their balance down by nearly 40%. That's not a knock on advisors; it's proof that the right expertise matters.
The Federal Reserve has reported that over 40% of Americans would struggle to cover a $400 emergency expense, which tells me people need more than just generic financial advice. My guidance to anyone considering a financial advisor is this: make sure they collaborate with specialists. 
A solid advisor will know when to bring in a tax resolution attorney, just as a good doctor knows when to call in a surgeon. Don't confuse broad financial planning with the precision required to get the IRS off your back.

Thinking About Hiring a Financial Advisor? Read These Insights

Table of Contents

Thinking About Hiring a Financial Advisor? Read These Insights

Seek Clarity in Financial Planning Goals

Align Advisor with Business Seasonality

Choose Fiduciaries for Comprehensive Financial Guidance

Entrepreneurs Benefit from Specialized Financial Advice

Simplify Decisions with Objective Financial Guidance

Industry-Specific Advisors Improve Cash Flow Management

Find an Advisor Who Communicates Clearly

Diversify Beyond Traditional Assets for Wealth Preservation

Select Advisors with Transparent Investment Processes

Holistic Approach Yields Surprising Financial Benefits

Set Clear Expectations for Financial Advisory Partnership

Empower Yourself Through Financial Education

Specialized Expertise Crucial for Complex Financial Situations

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