I’m 50 with $10 million. How do I find the best financial advisor?

If financial advisors were free, perhaps more people would use them. But understandably, financial advisors need to make money so they can feed their families, too. And that makes the decision to hire one tougher, because you need to make sure you’re getting good value for your money.

In this Reddit post, a 50-year-old person with a $10 million net worth is having a hard time finding the right financial advisor. They’ve spoken to a number of them and have found that the services they offer are largely the same.

They’re interested in getting help managing their money, but they’re not sure how to find the right person for the job. And the truth is, the poster should be picky about this. So should anyone in the market for a financial advisor.

It’s important to find the right fit

Your financial advisor is someone you’re going to trust to manage and grow your wealth. This means the stake are high, and that you should absolutely take the time to find the right person.

One thing you should know, though, is that many financial advisors do have the same licenses and offer similar services. What might distinguish one from another is years of experience and personality.

This isn’t to say that a financial advisor with three or four years of experience will do a poor job. But what would you rather have — an advisor who’s been through a couple of market events, or an advisor who’s been doing this for 20 years and has seen their share of market movement and economic turbulence?

There’s also personality to consider. It’s important to find a financial advisor you have a good connection with, and whose communication style is what you’re looking for.

Some financial advisors might try to butter you up, while others are more blunt and direct. The approach you prefer depends on you.

But remember, this is a person you’ll ideally be working closely with for a good number of years. So it’s important that you’re a fan of their communication style.

Make sure your financial advisor will put your needs first

Aside from experience and personality, another key thing to look at when talking to financial advisors is whether they’ll truly put your needs first at all times. And to that end, you may want to favor an advisor who’s a fiduciary.

At a minimum, financial advisors are held to a suitability standard. This means they’re required to only recommend investments that are suitable for you.

A fiduciary goes beyond that point. A fiduciary must put your financial needs first and ahead of their own at all times.

Here’s how the difference might play out. Say your financial advisor is not a fiduciary and they have two investments to recommend to you. Both are suitable, but one will cost you more in terms of a commission they get to pocket.

In that case, they could suggest the more costly investment because it’s appropriate for your portfolio. They just get to benefit more.

A fiduciary is supposed to put your best interests first at all times, which means they would be required to recommend the investment that pays them less. That’s something you should want.

All told, if you’ve made it to age 50 with $10 million, you clearly know a thing or two about managing money. So if you’re going to get help with your portfolio, you deserve a financial advisor who will always have your best interests in mind.

But you don’t need to be wealthy to insist on working with a fiduciary. So don’t hesitate to pursue a financial advisor who holds themself to that standard.

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