Question: “Why do people need financial advisers? It seems that a financial adviser is a fancy way to disguise financial crooks. Have we not learned lessons from Bernie Madoff or John N. Matson? How do you know your money isn’t going to end up funding your adviser’s life and leave you with nothing? Is there ever any way to actually be sure?”

Answer: It’s understandable that you’re wary of financial advisers, especially considering there are a range of titles, certifications, services and fee structures that are often convoluted or hidden. And like with most any profession, there’s a risk that advisers could be crooks. 

That said, there are ways to vet advisers well — you can use this free tool to get matched with financial advisers, and sites like CFP Board and NAPFA, too. There are also plenty of advisers who can help you, and there’s research to back the use of advisers. The CFP Board’s Financial Planning Longitudinal Study released in February 2025 reveals that clients of CFP professionals are more likely to have a detailed, regularly-reviewed financial plan, maintain emergency funds and wills, and report living comfortably than those who work with other advisers or are unadvised. Similarly, a 2025 Vanguard study found that investors with advisers reported greater peace of mind and less stress related to their finances than self-directed investors.

Have an issue with your financial planner or looking for a new one? Email questions or concerns to picks@marketwatch.com.

How to vet an adviser you want to work with

You must thoroughly vet any adviser you want to work with. Start with this list of questions that gets into the adviser’s credentials, fees, values and more. You can also look into an adviser’s past behavior and any complaints made against them by using FINRA’s BrokerCheck if they’re a broker or registered representative. If they’re an investment adviser or they work for an advisory firm, you can see if any disciplinary actions have been noted on the SEC’s Investment Adviser Public Disclosure (IAPD) database.

Note that when it comes to credentials, you might want to consider a certified financial planner. CFPs are required to complete extensive education demands, perform thousands of hours of work-related experience and adhere to a fiduciary duty, meaning they must put their clients’ best interests ahead of their own. Other credentials to look for include chartered financial consultants (ChFCs), certified public accountants (CPAs), retirement income certified professionals (RICPs), enrolled agents (EAs) or certified private wealth advisers (CPWAs).

Regarding Madoff and Matson, wealth manager Marcos Segrera at Evensky & Katz/Foldes Wealth Management says the industry has learned lessons from those cases. “These tragic situations highlighted the critical need for a clear separation between who provides investment advice and where your money is actually held. The key distinction to understand is the custody of your assets,” says Segrera. “In legitimate advisory relationships, your adviser doesn’t directly hold your money. Your assets are custodied by large, independent and highly regulated institutions like Fidelity, Schwab and Pershing. This structural separation is designed to prevent advisers from having direct access to or control over your funds, significantly mitigating the risk of fraud seen in those notorious cases.”

DIY or financial adviser? 

Financial advisers can be helpful — but not everyone needs them. “They help with building savings and investment strategies, working through challenging financial situations and enhancing clients’ capabilities to attain their goals,” says certified financial planner Andrew Rotz at Fruitful. 

Financial advisers also help individuals filter out the noise from financial media and avoid emotional, rash decisions driven by short-term market fluctuations or sensational headlines, says Segrera. “Their goal is to create and maintain a long-term, goal-focused plan tailored specifically to your financial objectives. A financial adviser provides the steady hand, coaching clients through uncomfortable moments like market downturns or tempting hot trends, ensuring adherence to a strategy designed for long-term success,” says Segrera.

Still, it can be helpful to assess your own interest, time and capacity to be involved in your finances. Then, you can decide whether or not you want to pay someone to manage your assets for you. “When you delegate your portfolio to an AUM model, this is the highest level of financial services you can have. This is like having a personal chef come into your kitchen to cook dinner for you. As you can imagine, this service is [often] the most expensive and the people who use it typically want to be informed about decisions and trades but don’t need to be hands-on. For this type of service, make sure the adviser is still fee-only because if they are fee-based, they are also earning commissions of some kind,” says certified financial planner Mary Ann Sullivan at 395 Financial Planning.

If you’re willing to learn alongside a financial planner, you might want to consider an advice-only planner. “Financial planners who are advice-only make a commitment to teaching you how to be your own CFO. They will make investment recommendations, explain their rationale and teach you how to execute them. You can save a ton of money in fees over your lifetime if you’re willing to have a professional teach you how to create, implement and monitor a financial plan aligned to your life goals,” says Sullivan. 

The cost of working with an adviser varies depending on location and expertise, but advisers working in an assets under management (AUM) capacity tend to charge an industry standard of roughly 1% AUM. Hourly advisers charge between $200 and $500 per hour and project-based advisers can range from $1,500 to $7,500 depending on the scope of work.

Remember, if something seems too good to be true, it probably is. “Good advice isn’t free, so you should expect to pay a fair rate for it, but having some certainty around the standards a professional has should alleviate those concerns about ulterior motives and malicious intent,” says Rotz.

While no human endeavor can offer a 100% guarantee against all unforeseen risks, you can achieve a very high degree of certainty through a combination of crucial safeguards, says Segrera. “Maintain open and regular communication with your adviser. A strong trust-based relationship, built on consistent interaction and clear understanding of your plan is ultimately your greatest assurance,” says Segrera.

DIY-ing through financial planning can also work sometimes. But, you’ll need to have enough time and interest to dedicate to the issue. If you’re well-versed in personal finance and unemotional when making financial decisions, you might be able to save money and manage your own finances.

That said, working with an expert is often beneficial — would you try to fix your own plumbing issues? You might be able to make an attempt, but your time and energy may also be worth more than spending money to hire a professional plumber.

Have an issue with your financial planner or looking for a new one? Email questions or concerns to picks@marketwatch.com.

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