Start with the plan, then the portfolio
A portfolio is a tool for reaching specific goals: retirement at a certain age, a home, a business, a legacy. A good advisor starts by putting those goals, dates and dollar amounts in writing, then designs the allocation to fit.
The four levers you control
- Asset allocation. The mix of stocks, bonds and other assets explains most of a portfolio's long-term behavior.
- Costs. Fund expense ratios and advisory fees compound against you, so know your all-in cost.
- Taxes. Holding the right assets in the right account types (asset location) can add meaningful after-tax return.
- Behavior. Sticking with a plan through downturns matters more than timing the market.
Fiduciary vs. non-fiduciary
A fiduciary advisor is legally required to act in your best interest. Ask directly: "Are you a fiduciary at all times, for all of my accounts?" Also ask how they're paid (flat fee, hourly, percentage of assets or commission), since each model creates different incentives.
Frequently asked questions
What is a fiduciary financial advisor?
A fiduciary must put your interests ahead of their own. Registered investment advisers (RIAs) owe a fiduciary duty to clients. Always confirm in writing.
How much money do I need to work with an advisor?
Some advisors have minimums; many flat-fee and hourly planners don't. Tell us your situation and we'll match you accordingly.
How are investment advisors paid?
Common models are a percentage of assets managed, flat annual fees, hourly fees or commissions. Ask for the total cost in dollars.