Choosing an Advisor
Zoe Team
7 min read
Look for credentials like CFP® or CFA®; advisors with investment-related violations are a major warning sign.
Avoid advisors who prioritize commission-based products like annuities over your specific needs.
Communication should be two-way; an advisor who dismisses questions or uses confusing jargon isn’t serving your best interests.
You should prioritize advisors with professional designations like Certified Financial Planner (CFP®) or Chartered Financial Analyst (CFA®).
Frequent pushes for these products may indicate the advisor is earning a commission rather than acting in your best interest.
Using a reputable third-party custodian helps prevent fraud by separating the advisory function from the custody of your assets.
When hiring a wealth advisor, it is all too easy to focus on what makes for a great advisor and how to spot one. Unfortunately, there are plenty of advisor-bad apples, as well. If you’re wondering what a bad advisor looks like, here are a few of the red flags to look out for.
It is important to understand that there are two boxes your advisor should always check. They should have the necessary credentials - Certified Financial Planner (CFP®) or Chartered Financial Analyst (CFA®) are preferred - and a clear record. While seemingly obvious, Zoe’s research revealed that 3% of dually registered advisors have investment-related violations. If you notice that either of the above is lacking, steer clear.
They push annuities and variable insurance productsIt happens all the time: a client meets with an advisor, and they seem to circle back to variable life insurance again and again, despite the client’s initial inclination not to buy it. This could be a sign that the advisor receives a commission from the sale of that product and is not acting in the client’s best interest. Our advice, ask the advisor point-blank if they receive any compensation if you buy that product. By definition, if they get a commission from any sale of the product, the advisor’s incentives are not aligned with yours. It means that their end goal is not necessarily to recommend the products that are best for your specific situation, but rather the products that pay the most. Read here for more on typical financial advisor fees & costs.
They don’t return your calls or reply to your emailsA good wealth advisory practice is client-centric, which means that you are the core of their universe. Part of this is ensuring a clear line of communication that’s coupled with a professional manner and timely responses. Any advisor that doesn’t make you feel like their most important client should get the boot. Your needs, your goals, and your wealth: that’s what they should be focused on. This brings us to our next point…
They’re inwardly focusedA bad wealth advisor is inwardly focused, whereas a good one is outwardly focused. What does this mean? Bad advisors ask themselves what they can gain from you as a client and focus on what their priorities are. An outwardly focussed advisor will rather pay attention to your needs: “how can I help my client?”. The focus should be on you. Always.
They self-clear and don’t work with a third-party custodianA custodian is a financial services company that maintains electronic records of financial assets or has physical possession of specific securities. Although it may sound like having a third party involved in your wealth is a bad thing, it is actually a good (and essential) thing. Why? Two words: Bernie Madoff.
Bernie Madoff was able to pull off one of the most devastating instances of fraud because he was both an advisor and custodian. As an advisor who also takes custody of your assets, they generate the account statements and therefore have a much greater ability to create falsified documentation. Bottom line: you want an independent third party custodian involved.
Now, if your advisor clears through a tiny custodian, that is not great news either. The custodian should be a brand name that has been in business for years. The four biggest custodians that work with independent advisors are Charles Schwab, Fidelity Institutional, Pershing, and TD Ameritrade.
They have a big egoMost people do not work in the wealth management industry and are not up to speed with financial jargon and terminology. This means that most financial advisor clients (especially when they are just getting started) have a lot of questions. An advisor that doesn’t like (or encourage) questions should be treated with caution. Even worse, they will probably get antsy when you challenge them. A good advisor who knows their stuff and has adopted a client-centric approach should ALWAYS hear you, consider your thoughts, and come back with a clear explanation of the why. Similarly, when things do not go as planned, a bad advisor will make excuses. A good advisor will take responsibility for their mistakes or lack of delivery. Open and honest, that is what you deserve.
They always agree with youA people pleaser can be a red flag. If your advisor never disagrees with you and simply follows your instructions like a puppet, you should worry. If you hire a wealth advisor it is because of their expertise in managing your money holistically. Every suggestion that you make should be considered with that in mind. Absentmindedly doing what you want to avoid conflict can be as destructive as ignoring your needs altogether.
They talk TO you instead of WITH youThe key to a healthy relationship with your advisor is exactly that – a relationship. There is a big difference between taking advice and taking control. You want to take control; and in order to do that, you need to have an open and honest, two-way relationship with your advisor. An advisor that uses buzzwords and lots of jargon and who avoids a dialogue is a worrying sign. Similarly, if they talk down to you, it is never a good sign. Almost everyone that works with a financial advisor has somewhat limited knowledge of the industry. Unless you work in finance (and even this is not always the case), you may never have come across certain terminology, processes, or products… AND THAT’S OK. A good wealth advisor should have the skill to explain the ‘financy’ stuff to anyone, no matter what their level of knowledge. If not – they’re not going to add much value to you.
They see investments as the navigational systemInvesting is only the engine of your financial life, not the navigational system. You set the goals to navigate toward. Having a good wealth advisor is like having an elite household CFO that looks at your wealth planning life holistically, incorporating risk management, budgeting, taxation, estate planning, and investments.
This personal finance black-belt assesses your current situation, considering your short and long-term goals, to determine the most efficient way of allocating resources to achieve them. They are not solely investment managers. A bad wealth advisor can hide behind the mask of an investment manager, which means they don’t have to explain the interconnectedness of your goals, protection, risk, and investments. If they can not give you an overall picture of WHY they are investing your money the way they are (which should include the strategy to achieving both your short and long-term goals) then they are not doing a very good job.
Your relationship with your wealth advisor is an important one. You need to feel comfortable being open and honest with them, and with them being open and honest with you. The wealth management industry has so many options, that often it can feel daunting to make a change. Any advisor that makes you feel unimportant, unheard, scared to ask questions or pushed to use products you do not think you need, should be questioned.
Breakups can be tough… How To Fire Your Financial Advisor
When hiring a wealth advisor, it is all too easy to focus on what makes for a great advisor and how to spot one. Unfortunately, there are plenty of advisor-bad apples, as well. If you’re wondering what a bad advisor looks like, here are a few of the red flags to look out for.
It is important to understand that there are two boxes your advisor should always check. They should have the necessary credentials - Certified Financial Planner (CFP®) or Chartered Financial Analyst (CFA®) are preferred - and a clear record. While seemingly obvious, Zoe’s research revealed that 3% of dually registered advisors have investment-related violations. If you notice that either of the above is lacking, steer clear.
They push annuities and variable insurance productsIt happens all the time: a client meets with an advisor, and they seem to circle back to variable life insurance again and again, despite the client’s initial inclination not to buy it. This could be a sign that the advisor receives a commission from the sale of that product and is not acting in the client’s best interest. Our advice, ask the advisor point-blank if they receive any compensation if you buy that product. By definition, if they get a commission from any sale of the product, the advisor’s incentives are not aligned with yours. It means that their end goal is not necessarily to recommend the products that are best for your specific situation, but rather the products that pay the most. Read here for more on typical financial advisor fees & costs.
They don’t return your calls or reply to your emailsA good wealth advisory practice is client-centric, which means that you are the core of their universe. Part of this is ensuring a clear line of communication that’s coupled with a professional manner and timely responses. Any advisor that doesn’t make you feel like their most important client should get the boot. Your needs, your goals, and your wealth: that’s what they should be focused on. This brings us to our next point…
They’re inwardly focusedA bad wealth advisor is inwardly focused, whereas a good one is outwardly focused. What does this mean? Bad advisors ask themselves what they can gain from you as a client and focus on what their priorities are. An outwardly focussed advisor will rather pay attention to your needs: “how can I help my client?”. The focus should be on you. Always.
They self-clear and don’t work with a third-party custodianA custodian is a financial services company that maintains electronic records of financial assets or has physical possession of specific securities. Although it may sound like having a third party involved in your wealth is a bad thing, it is actually a good (and essential) thing. Why? Two words: Bernie Madoff.
Bernie Madoff was able to pull off one of the most devastating instances of fraud because he was both an advisor and custodian. As an advisor who also takes custody of your assets, they generate the account statements and therefore have a much greater ability to create falsified documentation. Bottom line: you want an independent third party custodian involved.
Now, if your advisor clears through a tiny custodian, that is not great news either. The custodian should be a brand name that has been in business for years. The four biggest custodians that work with independent advisors are Charles Schwab, Fidelity Institutional, Pershing, and TD Ameritrade.
They have a big egoMost people do not work in the wealth management industry and are not up to speed with financial jargon and terminology. This means that most financial advisor clients (especially when they are just getting started) have a lot of questions. An advisor that doesn’t like (or encourage) questions should be treated with caution. Even worse, they will probably get antsy when you challenge them. A good advisor who knows their stuff and has adopted a client-centric approach should ALWAYS hear you, consider your thoughts, and come back with a clear explanation of the why. Similarly, when things do not go as planned, a bad advisor will make excuses. A good advisor will take responsibility for their mistakes or lack of delivery. Open and honest, that is what you deserve.
They always agree with youA people pleaser can be a red flag. If your advisor never disagrees with you and simply follows your instructions like a puppet, you should worry. If you hire a wealth advisor it is because of their expertise in managing your money holistically. Every suggestion that you make should be considered with that in mind. Absentmindedly doing what you want to avoid conflict can be as destructive as ignoring your needs altogether.
They talk TO you instead of WITH youThe key to a healthy relationship with your advisor is exactly that – a relationship. There is a big difference between taking advice and taking control. You want to take control; and in order to do that, you need to have an open and honest, two-way relationship with your advisor. An advisor that uses buzzwords and lots of jargon and who avoids a dialogue is a worrying sign. Similarly, if they talk down to you, it is never a good sign. Almost everyone that works with a financial advisor has somewhat limited knowledge of the industry. Unless you work in finance (and even this is not always the case), you may never have come across certain terminology, processes, or products… AND THAT’S OK. A good wealth advisor should have the skill to explain the ‘financy’ stuff to anyone, no matter what their level of knowledge. If not – they’re not going to add much value to you.
They see investments as the navigational systemInvesting is only the engine of your financial life, not the navigational system. You set the goals to navigate toward. Having a good wealth advisor is like having an elite household CFO that looks at your wealth planning life holistically, incorporating risk management, budgeting, taxation, estate planning, and investments.
This personal finance black-belt assesses your current situation, considering your short and long-term goals, to determine the most efficient way of allocating resources to achieve them. They are not solely investment managers. A bad wealth advisor can hide behind the mask of an investment manager, which means they don’t have to explain the interconnectedness of your goals, protection, risk, and investments. If they can not give you an overall picture of WHY they are investing your money the way they are (which should include the strategy to achieving both your short and long-term goals) then they are not doing a very good job.
Your relationship with your wealth advisor is an important one. You need to feel comfortable being open and honest with them, and with them being open and honest with you. The wealth management industry has so many options, that often it can feel daunting to make a change. Any advisor that makes you feel unimportant, unheard, scared to ask questions or pushed to use products you do not think you need, should be questioned.
Breakups can be tough… How To Fire Your Financial Advisor
Disclosures: Zoe Financial, Inc. ("Zoe Financial") is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. Zoe Financial provides investment advisory services and access to independent registered investment advisers through its platform. The information provided by Zoe Financial is for educational and informational purposes only and should not be construed as personalized investment advice or as an offer to buy or sell any security. All investments involve risk, including possible loss of principal. Past performance is not indicative of future results. Clients should consult with their own financial, tax, or legal professionals before making any investment decisions. The material presented by Zoe Financial is for informational purposes only and is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy, or investment product. Material presented has been gathered from sources believed to be reliable, however Adviser cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Past performance is no guarantee of future results. Zoe Financial does not provide legal or tax advice, and nothing contained in these materials should be taken as legal or tax advice. SEC Registration does not constitute an endorsement of Zoe Financial by the SEC nor does it indicate that Zoe Financial has attained a particular level of skill or ability. The sole purpose of this material is to inform, and it in no way is intended to be an offer or solicitation to purchase or sell any security, other investment or service, or to attract any funds or deposits. Investments mentioned may not be appropriate for all clients. Before making any investment, each investor should carefully consider the risks associated with the investment, as discussed in the applicable offering memorandum, and make a determination based upon their own particular circumstances, that the investment is consistent with their investment objectives and risk tolerance. Lower expenses do not guarantee better investment performance. Certain information contained herein may constitute forward-looking statements. Due to various risks and uncertainties, actual events, results or the performance of a fund may differ materially from those reflected or contemplated in such forward-looking statements.
Disclosure: This page is not investment advice and should not be relied on for such advice or as a substitute for consultation with professional accounting, tax, legal or financial advisors. The observations of industry trends should not be read as recommendations for stocks or sectors.
Investment advisory services are provided by Zoe Financial, Inc. (Zoe Financial), an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). Registration does not imply a certain level of skill or training. Learn more about Zoe Financial on the SEC’s Investment Adviser Public Disclosure website. Brokerage services are provided by Zoe Securities LLC and Apex Clearing Corporation, members of the Financial Industry Regulatory Authority Inc. (FINRA) and Securities Investor Protection Corporation (SIPC). Learn more about Zoe Securities and Apex on FINRA’s BrokerCheck website.
The information in the visuals above is for illustrative purposes only and does not represent an actual user's account, balance, or return. Zoe Financial does not provide tax or legal advice.
Explore the Zoe Wealth Platform with AI
Some of this content may have been generated with the assistance of AI. Please review and sense-check all outputs, as AI tools can occasionally produce incomplete or inaccurate information.
In certain situations, you may be required to disclose that the content was “generated by AI.” Please confirm any specific disclosure or labelling requirements with Compliance.
(646) 680-9244
support@zoefin.com
666 Third Ave, 6th Floor
New York, NY, 10017
Copyright © 2026 Zoe Financial, Inc. | All rights reserved
Find an Advisor
Retirement Planning
Disclosure: This page is not investment advice and should not be relied on for such advice or as a substitute for consultation with professional accounting, tax, legal or financial advisors. The observations of industry trends should not be read as recommendations for stocks or sectors.
Investment advisory services are provided by Zoe Financial, Inc. (Zoe Financial), an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). Registration does not imply a certain level of skill or training. Learn more about Zoe Financial on the SEC’s Investment Adviser Public Disclosure website. Brokerage services are provided by Zoe Securities LLC and Apex Clearing Corporation, members of the Financial Industry Regulatory Authority Inc. (FINRA) and Securities Investor Protection Corporation (SIPC). Learn more about Zoe Securities and Apex on FINRA’s BrokerCheck website.
The information in the visuals above is for illustrative purposes only and does not represent an actual user's account, balance, or return. Zoe Financial does not provide tax or legal advice.
Explore the Zoe Wealth Platform with AI
Some of this content may have been generated with the assistance of AI. Please review and sense-check all outputs, as AI tools can occasionally produce incomplete or inaccurate information.
In certain situations, you may be required to disclose that the content was “generated by AI.” Please confirm any specific disclosure or labelling requirements with Compliance.
(646) 680-9244
support@zoefin.com
666 Third Ave, 6th Floor
New York, NY, 10017
Copyright © 2026 Zoe Financial, Inc. | All rights reserved
Find an Advisor
Retirement Planning
Disclosure: This page is not investment advice and should not be relied on for such advice or as a substitute for consultation with professional accounting, tax, legal or financial advisors. The observations of industry trends should not be read as recommendations for stocks or sectors.
Investment advisory services are provided by Zoe Financial, Inc. (Zoe Financial), an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). Registration does not imply a certain level of skill or training. Learn more about Zoe Financial on the SEC’s Investment Adviser Public Disclosure website. Brokerage services are provided by Zoe Securities LLC and Apex Clearing Corporation, members of the Financial Industry Regulatory Authority Inc. (FINRA) and Securities Investor Protection Corporation (SIPC). Learn more about Zoe Securities and Apex on FINRA’s BrokerCheck website.
The information in the visuals above is for illustrative purposes only and does not represent an actual user's account, balance, or return. Zoe Financial does not provide tax or legal advice.
Explore the Zoe Wealth Platform with AI
Some of this content may have been generated with the assistance of AI. Please review and sense-check all outputs, as AI tools can occasionally produce incomplete or inaccurate information.
In certain situations, you may be required to disclose that the content was “generated by AI.” Please confirm any specific disclosure or labelling requirements with Compliance.
(646) 680-9244
support@zoefin.com
666 Third Ave, 6th Floor
New York, NY, 10017
Copyright © 2025 Zoe Financial, Inc. | All rights reserved
