How to hire a financial advisor, step by step

Once you’ve found an advisor you like, the hiring process itself is fairly standard. Knowing the steps in advance makes it less intimidating and helps you spot anything unusual. Expect the whole process to take two to six weeks.

Step 1: The first call

Call the office or use the contact details on the advisor’s profile. Briefly explain your situation and ask two things: whether they work with people like you, and whether they have an account minimum. If the answer to either is no, you’ve saved everyone time.

Step 2: The discovery meeting

This first meeting is usually free and runs 30 to 60 minutes. The advisor will ask about your goals, income, savings, and concerns. You’ll ask about their services, approach, and costs. It’s a two-way interview, not a sales pitch, and it’s fine to say you’re meeting with others.

Step 3: Ask for the documents

• Form CRS, a two-to-four-page summary of services, fees, and conflicts
• The firm’s Form ADV Part 2 brochure, which goes into more detail
• A sample advisory agreement, so you can read it before anyone asks you to sign

Step 4: Review the proposal

If you move forward, you’ll usually receive a written proposal: the services, the fee, and sometimes an initial investment approach or planning outline. Compare it with your notes from the meeting. Anything that wasn’t discussed deserves a question.

Step 5: Sign and open accounts

You’ll sign an advisory agreement and open accounts at a custodian, an independent firm such as a large brokerage that holds your money. Your advisor manages the accounts, but you’ll receive statements directly from the custodian, which is an important safeguard.

Step 6: Move your money

Most transfers happen account to account without you writing a check, and they typically take one to three weeks. Before anything is sold, ask whether the move will trigger taxes or exit fees from your current provider.