Did you know that just about any advisor can call themselves a financial planner even though they derive all of their income from sales commissions?
It’s frustrating when I hear stories about “financial planners” who take advantage of families seeking reasonable advice and guidance. With so much industry jargon out there, it can be tough for families to determine which financial planner is right for them—and which firms are just trying to sell them a non-ideal product to make a commission.
When looking for a financial advisor and planner, here are a few steps I recommend to determine whether or not they’re the right fit and whether they’ll have your best interests at heart.
Empowerment Over Fear
Are you hesitating because you’ve heard scary stories about financial planners? I’ve heard them too. I recently had a client share a story about a visit to a different advisor who used high-pressure sales tactics of fear and stress. The client literally left the office and cried all the way home.
Your advisor should help you feel empowered — not afraid.
Do They Consider Your Needs?
Maybe this sounds like you: You have hit a point in your life when things are coming together. You are seeing success in your career. Your family is growing. You have a 401k for your retirement and 529 plans for your children. All is good. Why would you need a financial advisor when everything seems fine?
Or maybe you’ve lost a parent. Many of us have experienced this or are about to, and according to the latest research from Cerulli Associates, an epic $84.4 trillion (and by some estimates up to $124 trillion) will be passed down from baby boomers to Generation X and millennials through 2045. What happens to their money after they are gone? Are you afraid to make a misstep?
Perhaps you worry about retirement. Yes, you have a 401k, but is it enough? Could you be doing more? And then there is paying for college — likely the largest purchase you make besides your home. How will you get that done? What’s the best way to set your children up for long-term success?
Your advisor needs to not only consider your current financial status and investments, but also look ahead to your future goals, needs, and dreams.
How to Pick a Financial Advisor Who Puts Your Interests First
You will want to answer these questions to start:
- What type of advisor are they? What is their fee structure, and can it influence the recommendations they give to you?
- Do they have credentials valued by the industry, holding them to the highest standards of ethics and competency?
- Is their expert knowledge a fit for your unique needs (like college funding or tax planning)?
The Three Types of Advisors
The types of financial advisors break down into three categories:
- The Broker or “Registered Representative”: Employed by broker-dealer companies. They earn fees based on portfolio value but can also sell products like annuities and mutual funds to collect commissions. They are, primarily, salespeople.
- The “Fee-Based” Advisor: Often associated with large brokerage firms. They collect an annual fee or a percentage of assets, but they also can collect commissions on products they sell to you. They often serve two masters: you and their brokerage firm.
- The Fiduciary (Fee-Only): Merriam-Webster defines fiduciary as “involving a confidence or trust.” These advisors must make recommendations in your best interest by law. They cannot earn commissions. They are often Registered Investment Advisors (RIAs) focused on education and long-term success. (This is the type of advisor you’ll find at Capstone Wealth Partners.)
Check Their Credentials
In an industry full of “alphabet soup” (CFP®, CIMA, CPWA, CFA, ChFC, etc.), the CERTIFIED FINANCIAL PLANNER™ (CFP®) remains the gold standard for ethics and competency. But you should never take an advisor’s word for it. Verify them directly using the CFP Board’s Verification Tool.
Find a Niche Expert
Brokers are experts in products. Niche advisors are experts in people like you. While some focus on specific employee groups or doctors, at Capstone, our primary focus is on families with college-bound children.
In today’s college planning landscape, you need an advisor who understands the nuances of the FAFSA Simplification Act and how it impacts your specific financial aid eligibility and tax strategy. A “generalist” might miss the thousands of dollars in savings that a college-planning specialist can uncover.
Questions to Ask in Your First Meeting
Here’s a quick rundown of the questions you should ask when you first meet a potential advisor and planner.
- What is your planning process and how many meetings will we have?
- Do you use technology (like client portals) to track progress?
- Will you help me implement the plan, or just hand me a folder?
- How do you stay updated on changing college-funding laws?
As niche fiduciaries, Capstone takes great pride in our responsibility to deliver the best, individually tailored plans to families looking to save for college and beyond. If you’d like to find out if we’re the right fit for your family, please schedule some free time to meet with us and ask the questions above.
Updated December 2025
