Your Step-by-Step Guide to Choosing a Financial Advisor in 2025
Choosing the right financial advisor is one of the most important financial decisions you’ll ever make. The right advisor can help you with retirement planning, tax strategies, investment management, income planning and estate planning—all while giving you confidence that your money is being managed with care. The wrong advisor, however, could cost you time, money, and confidence.
So, how do you make the right choice? This guide will walk you through the key things to know, the right questions to ask, and the red flags to avoid.
What Is a Financial Advisor?
A financial advisor is a professional who helps you manage your finances and achieve your long-term goals. Services may include:
- Investment planning and advice
- Income Planning
- Retirement planning
- Tax strategies
- Estate planning
- Risk management (Investment and Insurances)
Some hold titles like CERTIFIED FINANCIAL PLANNER® (CFP®) or CHARTERED FINANCIAL CONSULTANT (ChFC®) or Registered Investment Advisor (RIA), each with specific training and regulatory standards.
* The most important thing to know: not all advisors are legally required to act in your best interest. That’s why choosing a fiduciary advisor is critical.
Types of Financial Advisors
There are three common compensation models:
Commission-Based Advisors – Earn commissions from financial products they recommend. Their income is transaction based. While not inherently bad, you’ll want to ensure their advice is truly aligned with your goals.
Fee-Only Advisors – Paid directly by clients. They don’t receive fees or commissions from selling financial products. They typically bill on time or a flat fee based on the amount of assets you have.
Fee-Based Advisors – Paid directly by clients and some institutions. They typically don’t receive commissions from securities transactions but bill based on an annual fee directly from your investment account (stocks, bonds, etc), but may receive commission compensation from non-securities such as life insurance and annuities. Fiduciaries under this arrangement must disclose and have the client approve any compensation prior to implementation.
Always ask: Are you a fiduciary? Fiduciaries are legally bound to put your interests first.
10 Key Questions to Ask a Financial Advisor
- How do you get paid? – Fee-only, commission, or a mix?
- What are my total costs? – Beyond fees, ask about fund expenses and transaction costs.
- What are your qualifications? – Look for CFP®, ChFC,® RIA, or CFA credentials.
- What is your investment philosophy? – Ensure it matches your goals, values and risk management comfort level.
- Who are your typical clients? – Experience with people in similar financial situations matters.
- How will we communicate? – Frequency, format, and accessibility.
- Who holds my investments? – Independent custodians add a layer of security.
- What is your approach to taxes? – Tax-efficient planning is critical for wealth preservation.
- What benchmarks do you use? – Make sure performance measurement is transparent and relevant.
Red Flags to Watch Out For
Not all advisors are the same. Be cautious if:
- Fees and costs are unclear or hidden.
- They promise “high returns” with little explanation.
- Their strategies seem overly complex without transparency.
- They refuse to share credentials, references, or qualifications.
Remember: a trustworthy advisor is transparent, credentialed, and client-first.
Why Choose Wootton Financial Group?
At Wootton Financial Group, we take pride in being a fee-based, fiduciary advisory firm.
That means:
- Transparent fee structure
- No hidden commissions on insurance products
- Fiduciary duty – We are legally and ethically bound to put your interests first.
- Holistic approach – We integrate investment management, tax planning, retirement strategies, and estate considerations.
- CLEAR Process and communication – We keep financial planning simple and transparent.
Our team of experienced professionals are here to help you make confident financial decisions that align with your long-term vision.
Selecting the right financial advisor in 2025 is about asking the right questions, understanding how advisors are compensated, and watching for red flags. Most importantly, it’s about finding someone you can trust to guide your financial life with integrity and clarity.
Investment advisory services offered through Game Plan Advisors, Inc (GPA, Inc.), a [“SEC”] registered investment adviser.
This blog contains general information that may not be suitable for everyone. The information contained herein should not be construed as personalized investment advice. There is no guarantee that the views and opinions expressed in this blog will come to pass. Investing in the stock market involves gains and losses and may not be suitable for all investors. Information presented herein is subject to change without notice and should not be considered as a solicitation to buy or sell any security. Neither Game Plan Advisors, Inc. nor Wootton Financial Group, Inc. offer legal or tax advice. Please consult the appropriate professional regarding your individual circumstance. Past Performance is no guarantee of future results.