To determine the best advisor, you begin with determining how much and what kind of services you need.
If you only need guidance with investing, some basic advice, and your needs are not complex, you may benefit by using a brokerage firm like Edward Jones. They get paid commissions but they are usually reasonable. But be aware that brokers are only required to uphold what is called a suitability standard of care, which means that they are required to recommend and sell investment types that are suitable for the client and the client’s goals. However, it should be noted that brokers are not legally required to find the best or lowest-cost investment types for the client. Also, brokers like this usually recommend load funds or funds with expense ratios that are higher than necessary to accomplish the client’s goals.
If you want investment advice and ongoing financial planning, your best bet might be a Registered Investment Adviser. RIAs only get paid by the client (you) and they only use investments (i.e. no-load mutual funds, low-cost index funds, and ETFs) that best serve the client’s needs. RIAs are required to uphold a fiduciary standard of care, which is more expansive than the broker’s suitability standard. In different words, an RIA is legally required to put the interests of the client ahead of his or her own. You’ll pay ongoing fees but the fees will come from you and a good RIA can save on expenses with low-cost mutual funds, which are often the best-performing funds.
In the opinion, personal and professional experience of your humble mutual funds expert, insurance and banks are not the best places to get investment advice. While some are capable, it is generally best to get your insurance products from insurance companies and your banking products and services from banks. On a lighter note, you wouldn’t buy hamburgers from a pizza place, would you?
On a final note, whatever advisor or planner you use, it is wise to use one with a certification, such as a CFP (see above) or similar. You are also wise to ask friends or co-workers for references and to ask the advisor for references before hiring them.
source: wealthforum.com