Bankrate rated financial advisors in several areas. Detailed information on how Bankrate researched advisors and the factors that are important can be found below.
Factors used to determine the best financial advisors:
- Assets under management (AUM)
- Costs
- Services offered
- Account minimums
- Independent customer satisfaction survey
How we vet financial advisors
Bankrate reviewed dozens of financial advisors to come up with the list of the best financial advisors. We researched companies using publicly available information from company websites and Securities and Exchange Commission filings, such as Form ADV and Form CRS.
What is important to us when assessing financial advisors
Bankrate rated companies in several areas and provided credit to financial advisors with customer-friendly offers.
- AUM
- Bankrate took into account the amount of clients’ assets under management. While not a perfect indicator of a good advisor, firms with high assets under management have built relationships with a large number of clients, which may translate into lower fees.
- Costs
- The amount a client would pay for a financial advisor’s services is often the most important consideration when choosing an advisor. Compensation can vary widely within the industry, but companies were credited with having lower costs.
- Services offered
- Some financial advisory firms offer only basic services, while others offer a wide range of financial services, including tax preparation and estate planning. Companies were given credit for providing a wider range of services beyond basic financial planning.
- Account minimums
- The amount of money you need to get started with an advisor can vary significantly from company to company. Some companies need millions to get started, while others start with smaller amounts. Financial advisors were rewarded for having lower account minimums.
- Customer satisfaction survey
- As another instrument to assess advisors, we used an independent customer satisfaction survey.
