The best online financial advisers

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The best online financial advisers

Online financial advisers are more accessible, and often cheaper, than advisers who work face-to-face. And increasingly, they're offering more than just investment management.

In our search for the best online financial advisers, we looked for companies with easy-to-use investing platforms and experts that help with your overall financial plan or answer your most pressing questions at an affordable price point — because investing doesn't happen in a vacuum.

Pros and cons

Wealthfront

Pros

• Low AUM fee
• Automatic rebalancing and tax-loss harvesting (no minimum balance)
• Financial planning tools that make personalized recommendations created by a team of PhDs
• Offers 529 college savings plans in addition to retirement accounts and individual taxable accounts
• Fee-free hybrid savings and checking account

Cons

• No fee discount for higher balances
• $500 account minimum
• Investment options limited to ETFs

Learn more about Wealthfront »

Betterment

Pros

• Half the cost of Personal Capital for similar services
• Automatic rebalancing and tax-loss harvesting (no minimum balance)
• Complimentary, ongoing financial advice for clients with a balance above $100,000
• Access to retirement planning tools without transferring your account
• Fee-free checking and cash reserve accounts
• Betterment Advisor Network connects clients to independent CFP® professionals
• Socially responsible investing portfolio strategy available

Cons

• AUM fee increases for higher balances, although it includes free financial planning
• For balances below $100,000, one-time financial planning packages run $199 to $299
• Investment options limited to ETFs

Learn more about Betterment »

SoFi

Pros

• No upfront costs to open and maintain an automated investing account (but fees are charged in the underlying funds you own)
• Automatic rebalancing
• No fee stock and ETF trading (includes fractional shares)
• Members get discounts on loans, career advancement tools, and free consultations with CFP® professionals
• Fee-free hybrid savings and checking account

Cons

• No tax-loss harvesting on investment accounts
• Products and services are geared toward millennials
• Automated investing accounts are managed by an algorithm only
• Investment options for automated investing are limited to ETFs

Learn more about SoFi »

Blooom

Pros

• One of the few online advisers managing 401(k)s
• Free tool that will analyze your workplace plan or IRA and compare your current investments to your time horizon and risk tolerance
• Ongoing monitoring and automatic rebalancing of your accounts
• Financial advisers available via a chat box to answer questions about anything related to your finances, not just retirement

Cons

• The flat fee is higher on lower balances — e.g. the $120 per year fee for one account is equal to 1.2% on a $10,000 balance
• Only supports retirement accounts held at Schwab, Fidelity, or Vanguard
• Financial planning is not comprehensive

Learn more about Blooom »

Vanguard Personal Advisor Services

Pros

• Low AUM fee
• Good for clients at any life stage
• Fee discounts for higher balances
• Financial planners help you create a comprehensive financial plan before diving into investment strategy
• Help with estate planning, tax planning, and charitable giving

Cons

• $50,000 account minimum
• Narrow set of investment options (four Vanguard funds)
• No tax-loss harvesting
• Must be a Vanguard client

Vanguard Personal Advisor Services

How we chose the best financial advisers

We compared 15 Registered Investment Advisers (RIAs), weighing the following five categories equally.

Fees: What are the costs? Are they justified when considering the services offered?

Access: Who can use the service? Is it limited to a certain geographic location or available nationwide?

Ethics: Are the experts Certified Financial Planners and/or fiduciaries? Does the company have any disciplinary history over the past three years? What is the company's investing philosophy?

Services: What is included for the cost? What else do you get working with this company (savings or checking accounts, budgeting tools, financial advice)?

Minimum balance: What is the minimum balance for an investment account? Is it accessible for beginners?

Other online financial advisers we considered

• Vanguard Digital Advisor
• Personal Capital
• Harness Wealth
• Ellevest
• Charles Schwab Intelligent Portfolio Premium
• Rebalance 360
• Wealthsimple
• Fidelity Go
• Facet Wealth
• Stash Wealth

How to find an in-person financial adviser

If you'd rather meet with an expert face-to-face, here are the best free online tools for finding one in your area:

• CFP Board's Let's Make a Plan
  • This is a database of all CERTIFIED FINANCIAL PLANNER™ professionals who are authorized to use their CFP® marks by the CFP® Board and are accepting new clients.
  • Using the advanced search function, you can choose from over 40 focus areas you're looking to get help with and include your current amount of investable assets.
  • Click here to visit CFP Board website.
• XY Planning Network
  • This database helps connect young professionals — those included in generations X and Y (millennials) — with individual advisers.
  • Every adviser holds the CFP® certification, is a fiduciary, does not require a minimum net worth to take on new clients, and does not earn commissions.
  • Click here to visit XY Planning Network.
• SmartAsset's SmartAdvisor Match tool
  • This tool asks users to answer a few questions about their income, savings, investments, and goals. In less than 10 minutes, it matches you with up to three advisers who will reach out to you after SmartAdvisor's concierge team calls to confirm your request.
  • Every financial adviser on the platform is a fiduciary, must be registered at the federal or state level, and has not had a felony conviction or disclosure within the past 10 years.
  • Click here to visit SmartAdvisor.
• The National Association of Personal Financial Advisors
  • This platform maintains a database of fee-only financial advisers, not specifically CFP® certificants, who commit to a fiduciary oath once a year.
  • You can filter by location to see a list of advisory firms in your area.
  • Click here to visit the National Association of Personal Financial Advisors website.

Frequently asked questions

Why trust our recommendations?

Personal Finance Insider's mission is to help smart people make the best decisions with their money. We understand that "best" is often subjective, so in addition to highlighting the clear benefits of a financial product, we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products and services so you don't have to.

What is the best financial adviser company?

The best financial adviser depends on what you're looking for. There are typically two categories: so-called robo-advisers, which use computer algorithms to create an investment portfolio and offer advice, and hybrid advisers, which combine technology and human advice, sometimes at a higher price point.

Someone seeking comprehensive and personalized advice should consider Betterment — which offers one-time financial planning packages for a fee as well as complimentary, ongoing financial advice for clients with a balance above $100,000 — or Vanguard Personal Advisor Services — which helps clients with a balance above $50,000 create a full financial plan before turning to investment strategy.

Is a financial adviser worth it?

Not everyone needs a financial adviser — human or otherwise. However, you should consider paying a financial adviser if you need specific advice on your finances or investment strategy or you're too overwhelmed or confused by your money to plan for retirement or invest in the stock market.

Most online financial advisers charge clients monthly or quarterly. You can always cancel if you don't feel like you're getting your money's worth.

How do I choose a good financial adviser?

A financial adviser is a catch-all term for financial planners and investment advisers. Most online advisers offer both investment management — whether it's carried out by a human or a sophisticated computer algorithm — and financial planning services or tools.

It's imperative to look for financial advisers who follow the fiduciary rule, meaning they operate in their clients' best interest, and are fee-only. This means client fees are their only compensation and they don't earn commission when you invest in certain funds or buy financial products.

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