"Financial advisor" is one of the most overloaded terms in the industry. A wealth manager serving $10M clients, a young CFP doing hourly planning for tech workers, a broker at a big bank, and a financial coach who doesn't manage money at all — all of them can legally call themselves "advisors." You need to know which one you're actually talking to.
Here's a breakdown of the most common types, what they do, and what they charge.
The financial planner
A financial planner helps you build a comprehensive picture of your money — budget, savings, investments, taxes, insurance, estate plan, major goals — and makes recommendations across all of it. They don't necessarily manage your investments themselves. The deliverable is a plan, not a portfolio.
Planners are usually the right fit for people who want holistic guidance but don't necessarily want someone else managing their accounts. They often charge a one-time flat fee for an initial plan ($2,000-$8,000), then hourly or retainer fees for ongoing questions ($150-$400 per hour).
Look for the CFP® designation. It's the credential that signals someone has actually been trained to do comprehensive planning.
The wealth manager
A wealth manager typically manages your investment accounts directly in addition to planning. They'll rebalance your portfolio, tax-loss harvest, and adjust your allocation as your life changes. They charge a percentage of the assets they manage — usually between 0.5% and 1.5% per year, tiered lower as account size grows.
Wealth management makes sense once you have investable assets (typically $250K+, though many advisors serve smaller accounts). The math gets better as your balance grows — a 1% fee on $500K is $5,000 a year, which should buy you meaningful ongoing advice and active management.
Most fee-only wealth managers are RIAs (Registered Investment Advisors), which means they're held to the fiduciary standard at all times.
“The fee question isn't 'what does this cost'. It's 'what am I getting for this cost, and would I pay the same price if I could see it clearly?'”
Jack Boudreau, CEO & Co-Founder, HabitsThe broker (sometimes called a financial consultant)
A broker's primary job is to execute trades and sell financial products. They don't have to be fiduciaries — most operate under the suitability standard, which is a lower bar. Brokers are most often found at large banks, wirehouses, and national broker-dealers.
Brokers can be useful for specific transactions (buying insurance, for example), but they're generally not the right relationship for comprehensive ongoing advice. If you're not sure whether you're talking to a broker or an advisor, ask: "Are you registered as an investment advisor representative, or as a broker, or both?"
The financial coach
Financial coaches focus on behavior and habits rather than portfolios. They'll help you get out of debt, build a saving routine, and change your relationship with money. They typically don't manage investments or hold any specific credential.
Coaching is a good fit for people who need behavior change more than investment advice. Fees range widely — $100 to $400 per hour, or monthly programs ranging from $300 to $1,500.
What each one costs
Which one do you actually need?
Most people looking for a "financial advisor" actually want one of three things: a comprehensive plan (planner), ongoing investment management (wealth manager), or help changing their money behavior (coach). The price and the relationship differ dramatically.
If you're a high-earning professional in your 30s or 40s figuring out how to optimize across salary, equity comp, taxes, and long-term investing, you typically want a fee-only CFP who offers flat-fee or retainer-based planning. If your accounts are larger and you don't want to manage them yourself, a fee-only wealth manager becomes the better fit.
You rarely need a broker for ongoing advice. And if your primary challenge is spending, saving, or money shame, a coach might help more than an advisor.
Not sure which kind you need? Take the 2-minute match at Quick Match and we'll route you to advisors who specialize in your situation.