Choosing the right financial advisor can be one of the most important decisions you make for your financial future.
A great advisor can help you optimize your portfolio, minimize taxes, and achieve your retirement goals.
But with so many options out there, how do you find the best financial advisor in Richmond VA to meet your unique needs?
As Megan Waters, CFP® at Covenant Wealth Advisors in Richmond, VA explains, "Working with an experienced, fiduciary financial advisor can make a world of difference, especially as you near retirement. But it's crucial to find an advisor who is the right fit for your specific situation."
In this article, we'll share insider tips on how to identify and select the top financial advisor in the Richmond area for you.
Need additional help with your retirement planning? Be sure to download our free retirement cheat sheets to potentially help you save money, reduce taxes, and optimize your portfolio for retirement.
Best Financial Advisor Richmond VA: Key Takeaways
Look for a financial advisor who is a fiduciary, putting your interests first
Verify the advisor's experience, credentials, and specialization in serving clients like you
Understand the advisor's fee structure and minimum investment requirements
Evaluate the advisor's communication style, process, and technology
Ask for referrals from friends or read online reviews, but ultimately meet with advisors yourself
Table of Contents
What to Look For in a Financial Advisor
When evaluating financial advisors in Richmond VA, we believe these are some of the most important factors to consider:
Fiduciary Duty
As a fiduciary, a financial advisor is legally and ethically required to put your best interests first at all times. A fiduciary financial advisor must provide advice and recommend investments that are in your best interest, not theirs. Always check that your advisor will be serving you in a fiduciary capacity. When in doubt, make them put in in writing and make sure it's written in their firm brochure ADV part 2B.
Credentials
Look for a financial advisor with respected credentials like the CERTIFIED FINANCIAL PLANNER™ (CFP®) designation. Certified financial planners have the educational training to provide comprehensive financial planning solutions, ensuring all aspects of your financial life are considered.
CFP® professionals have extensive training, experience, and are held to high ethical standards. Other reputable designations include Chartered Financial Analyst (CFA) and Certified Public Accountant (CPA).
Pro Tip: Verify an advisor’s credentials and background using FINRA’s BrokerCheck tool or the SEC’s Investment Adviser Public Disclosure database.
Experience
Ideally, work with a financial advisor who has at least 10 years of experience, including experience navigating different market environments and serving clients in situations similar to yours. For example, if you’re nearing retirement, look for advisors who specialize in retirement income planning, like our firm, Covenant Wealth Advisors.
Fee Structure
Understand how an advisor is compensated - fee-only, commissions, a combination?
We believe working with a fee-only fiduciary advisor is best to minimize conflicts of interest. Fee-only advisors are only paid by you and don’t receive commissions for recommending certain products.
If you aren’t sure if the advisor is fee-only, just make them putting in writing.
“At Covenant Wealth, we believe transparency is key, which is why we are fee-only fiduciaries. Our clients always know exactly how much they’re paying and that we only work in their best interest,” notes Scott Hurt, CPA, CFP® at Covenant Wealth Advisors in Richmond, VA.
Service Model
Consider how often you want to meet with your advisor and through what channels (in-person, phone, video chat). You’ll also want to make sure their communication style and process aligns with your expectations.
Will the advisor proactively meet with you once or twice a year? Will they meet with you for one off needs? These are important factors to consider.
Ask how the advisor leverages technology for communicating with clients and tracking progress.
Personality Fit
Ultimately, you want an advisor you feel comfortable communicating with and that you trust to manage your finances. Meet with potential advisors to gauge your comfort level and personal connection.
Identifying Qualified Financial Advisors in Richmond
To start your search for the best financial advisors in Richmond VA, consider:
Using online tools like NAPFA’s Find An Advisor tool to search for advisors by location and specialty. However, don’t just go by an advisor’s online profile. Be sure to evaluate them thoroughly yourself. It is crucial to choose a registered investment advisor for credibility and regulatory compliance.
Reading online reviews on Google, Yelp and other review platforms for insights on working with specific advisors. Look for unbiased reviews from clients who share your demographic and needs. For example, here are Google reviews for our Richmond office location*.
Look for objective recognition of an advisor’s quality such as a spot on esteemed lists like Newsweek’s Top Financial Advisory Firms.* However, always verify selection criteria and note that making an awards list does not guarantee your future experience.
Evaluating a Financial Advisor's Experience and Specialization in Retirement Planning
Experience and specialization are key when choosing a financial advisor. Look for advisors with proven track records serving clients like you. Consider factors like:
How many years of experience does the advisor have? Have they navigated challenging markets and economic environments?
Do they specialize in serving your unique needs and goals? For example, do you need an advisor who specializes in retirement planning? Or, do you have a career specialty, such as dentistry, and require an advisor who specializes in advising dentists only? Or, perhaps you are a business owner, and you need to work with an advisor who specializes in working with business owners.
What is their approach to financial planning and investing? Is it a good fit for you? Investment advisory services are crucial as they provide specialized investment strategies tailored to your financial goals.
How many clients like you do they work with?
“I believe experience and specialization are invaluable when guiding clients through pivotal life transitions like retirement,” explains Megan Waters, CFP® at Covenant Wealth Advisors in Richmond, VA. “You want an advisor who has helped many others in your shoes successfully navigate their finances.”
Pro Tip: Ask a prospective advisor to walk you through case studies or examples of how they’ve helped clients like you. Better yet, ask them to create a personalized plan for you for free. This provides valuable insight into their experience and process.
Understanding a Financial Advisor's Fee Structure
Compensation structure can significantly influence an advisor’s recommendations. Here are the most common fee models:
Fee-only
The advisor charges a flat fee, hourly rate, or percentage of assets under management. They do not earn commissions or kickbacks. Fee-only advisors have fewer conflicts of interest.
This fee structure is often, though not always, associated with investment management services, where clients are charged based on a percentage of assets under management.
Commission-based
The advisor is paid through commissions earned on product sales or transactions. While no advisor is void of conflicts, this model can create additional conflicts of interest and incentives to recommend certain products.
Fee-based
A hybrid model where the advisor charges fees and earns commissions. While fee-based advisors are often fiduciaries like fee-only advisors, commissions can still influence their advice.
We believe that working with fee-only advisors helps to minimize conflicts of interest and ensure your needs come first.
Ask prospective advisors:
Are you fee-only, fee-based, commission-based?
What is your fee structure? What will I pay all-in?
Do you have asset minimums? What are they?
Do you receive referral fees or other kickbacks?
Get the specifics in writing before signing on to work with an advisor.
Assessing an Advisor's Service Model and Communication
In addition to credentials and fees, consider an advisor’s service model and communication style. Financial planning services offer a comprehensive approach to managing clients' financial needs, including tax planning, estate planning, retirement planning, and insurance analysis.
Ask questions like:
How often will we meet? What is your communication style and process?
Will I work only with you or with a team?
What technology do you use for financial planning, portfolio management, and client communication?
How will you keep me informed about my progress?
What is your typical client response time?
An advisor’s communication skills, process and tools can make a big difference in your experience as a client. Make sure their approach aligns with your expectations.
Tips for Interviewing Financial Advisors
Choosing the right financial advisor is a big decision. We recommend interviewing at least 2-3 advisors before deciding who to hire.
Here are some tips:
Come prepared with a list of questions that matter most to you. Focus on their experience, specialization, service model, fees and communication style.
Ask for specific examples of how they’ve helped clients like you, their process, and their communication cadence.
Discuss your goals, needs, and concerns openly. Pay attention to how well they listen and if their responses instill confidence. Emphasize the importance of risk management in financial planning and investment management to ensure they can navigate potential uncertainties and enhance your financial security.
Take notes during the meeting and reflect on the conversation afterwards. Did you feel heard, understood and comfortable with them?
Don’t feel pressured to make a decision on the spot. An advisor should be happy to answer follow-up questions and give you time to reflect.
Trust your gut - if something doesn’t feel right, keep looking until you find an advisor you can trust and feel confident about.
Red Flags to Watch Out For
While there are many fantastic financial advisors out there, there are also some crucial red flags to watch out for:
Advisors who guarantee investment returns or seem to promise too-good-to-be-true results.
Advisors who are vague about their fees, don’t put them in writing, or brush off your questions.
Advisors who pressure you to make snap decisions or aren’t open to your questions.
Advisors who speak in jargon, don’t make an effort to explain things, or make you feel unintelligent.
Advisors who can’t demonstrate experience serving clients like you or navigating challenging markets.
Advisors who immediately start talking about annuities or other products, rather than advice.
Advisors who do not integrate tax planning into their comprehensive financial services, which is crucial for minimizing tax liabilities and enhancing overall financial well-being.
Advisors who do not have a clearly articulated investment philosophy.
Pro Tip: Be cautious of advisors whose credentials you can’t verify or who have disclosures on their regulatory records. Always check an advisor’s background on FINRA’s website.
If an advisor’s claims seem too good to be true, they probably are. Take your time to find an advisor that meets your needs and earns your trust.
Investment Management
Understanding Investment Strategies
Investment management is a cornerstone of effective financial planning. It involves crafting a personalized investment strategy that aligns with your unique financial goals and risk tolerance.
A well-thought-out investment strategy considers your time horizon, income needs, and personal preferences.
At Covenant Wealth Advisors, our experienced financial advisors in Richmond VA work closely with clients to develop tailored investment plans that are tied to their life plan. These plans prioritize the right mix of investments to help you achieve your financial objectives while managing risk effectively.
Active vs. Passive Investment Management
When you sit down with a financial advisor for investment advice, one of the things you'll want to understand is their approach to managing your money. Think of it like choosing between a hands-on gardener who's constantly pruning and replanting (active management) versus setting up an automated sprinkler system (passive management).
Active management is like having a chef who's constantly tweaking recipes - managers frequently buy and sell investments trying to beat the market. While this hands-on approach might lead to bigger returns, it usually means higher fees, and remember - investing involves risk.
Passive management is more of a "set it and forget it" approach, typically using exchange traded funds (ETFs) or mutual funds that track market indexes. It usually means lower fees and can be more tax-efficient. Many investment services now actually use both approaches - think of it as having both an automatic sprinkler system and a gardener for your financial garden!
Neither strategy is inherently better - it's about what helps you sleep at night while working toward your financial goals. When seeking investment advice, make sure to ask your advisor about their approach and how it fits your personal tax strategies and comfort level.
Retirement Planning
Estimating Your Retirement Savings Needs
Retirement planning is a critical component of your overall financial strategy. It involves accurately estimating your retirement savings needs to ensure a comfortable and secure future.
At Covenant Wealth Advisors, our financial advisors specialize in retirement planning, working diligently to determine if you are on track with your savings. We provide personalized recommendations to help you achieve your retirement goals. Our comprehensive retirement planning services include:
Estimating your retirement savings needs based on your lifestyle and goals
Identifying and optimizing your retirement income sources
Creating a sustainable retirement income plan that adapts to changing circumstances
Balancing tax planning with your income and investments
Regularly reviewing and adjusting your plan to stay aligned with your objectives
When it comes to retirement, your advisors goals should be to help you achieve a secure and comfortable retirement. We believe that proactive retirement planning should be a priority, and the advisor you choose should work with you to create a personalized plan that meets your unique needs and aspirations.
Making Your Final Decision
After meeting with several advisors, it’s time to reflect on your options. Consider:
Which advisor has the most relevant experience and specialization for your needs?
Which fee model aligns best with your goals and creates the fewest conflicts of interest?
Whose communication style and process make you feel most comfortable?
Who took the time to really listen and understand you?
Which advisor do you trust to give you objective, personalized advice?
Wealth management services often include comprehensive financial advisory, investment management, and retirement strategies, all aimed at building trust and transparency.
Take your time evaluating your options, following up with questions, and discussing with loved ones.
Choosing the right financial advisor is a significant decision that can impact your financial future. Make sure you feel fully confident before moving forward.
See How Our Financial Advisors Can Help You Retire With Confidence
Retirement Planning - Optimize your income and create a roadmap for a secure retirement.
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Tax Planning - Identify tax strategies including Roth conversions, RMD management, charitable giving and more...
FAQs About Choosing a Financial Advisor
Q: What’s the difference between a financial advisor and financial planner?
A: While often used interchangeably, financial advisor is a broader term that typically refers to any professional offering financial guidance, whereas financial planners specialize in building holistic financial plans. Not all financial advisors are CERTIFIED FINANCIAL PLANNER practitioners.
Q: How do I know if a financial advisor has my best interests in mind?
A: One of the best ways to ensure an advisor has your best interests in mind is to work with a fee-only fiduciary. Fiduciaries are legally and ethically bound to put their clients’ interests first. Understand that advisors who earn commissions may have additional bias in their advice. Still not sure? Ask the advisor to sign a fiduciary oath.
Q: How much does it cost to work with a financial advisor?
A: Costs vary depending on an advisor’s fee model and your investable assets. Fee-only advisors often charge a flat fee, hourly rate, or 1.25% or less of assets under management annually. Commission-based advisors are paid through the investments they sell. Always clarify all-in costs.
Q: What should I expect from my first meeting with a financial advisor?
A: The first meeting is typically a get-to-know-you session where the advisor tries to understand your financial situation, goals, risk tolerance and concerns. You’ll also learn about their background, process and fees. Come prepared with your financial docs and questions. The advisor will also discuss the importance of asset allocation in developing tailored investment strategies to maximize returns, manage risk, and ensure diversification.
Conclusion
Choosing the best financial advisor in Richmond VA for your needs is one of the most important decisions you can make for your financial future. Look for experienced, fiduciary advisors who specialize in serving clients like you.
Prioritize advisors whose communication style and fees align with your expectations. Always interview multiple options before making your final decision.
We hope this article has equipped you with the knowledge to find your ideal financial partner in the Richmond area.
If you'd like help designing a personalized financial plan, our fee-only, fiduciary advisors at Covenant Wealth would love to learn more about your unique situation. Contact us today to schedule a free retirement assessment. Together, we can chart your path to and through retirement.
About the author:
CEO and Senior Financial Advisor
Mark is the CEO of Covenant Wealth Advisors and a Senior Financial Advisor helping individuals age 50+ plan, invest, and enjoy retirement comfortably. Forbes nominated Mark as a Best-In-State Wealth Advisor* and he has been featured in the New York Times, Barron's, Forbes, and Kiplinger Magazine.
Disclosures: Covenant Wealth Advisors is a registered investment advisor with offices in Richmond, Reston, and Williamsburg, VA. Registration of an investment advisor does not imply a certain level of skill or training. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. The views and opinions expressed in this content are as of the date of the posting, are subject to change based on market and other conditions. This content contains certain statements that may be deemed forward-looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Please note that nothing in this content should be construed as an offer to sell or the solicitation of an offer to purchase an interest in any security or separate account. Nothing is intended to be, and you should not consider anything to be, investment, accounting, tax, or legal advice. If you would like accounting, tax, or legal advice, you should consult with your own accountants or attorneys regarding your individual circumstances and needs. This article was written and edited by a CERTIFIED FINANCIAL PLANNER™ professional with the assistance of AI. No advice may be rendered by Covenant Wealth Advisors unless a client service agreement is in place. Hypothetical examples are fictitious and are only used to illustrate a specific point of view. Diversification does not guarantee against risk of loss. While this guide attempts to be as comprehensive as possible but no article can cover all aspects of retirement planning. Be sure to consult an advisor for comprehensive advice.