Most people think financial advisors are for the rich. But, it is not so. Working with a financial planner is an excellent choice for anyone who aspires to meet their long-term money management and investment objectives and get their finances on track. But the question is how to find a financial advisor. Hiring the right professional can be tricky if you have no experience. Here are some beginner tips that can help.

Understand what kind of financial assistance you need
First things first, know what your expectations are. To find the right person, ask yourself these questions: Do you need help with tax computation? Do you wish to get your estate plan in order? Are you hoping to get help in creating a financial plan? Do you want someone to teach you to invest better?

The answers to these questions can help determine the kind of expert you need. For instance, if you merely seek assistance with investing, look for a robo-advisor who can invest on your behalf at a minimal fee. But, consider working with a traditional or an online financial advisor if you are dealing with a complex financial situation.

Learn about the different types of advisors
Federal law dictates who can offer financial advice and call themselves a financial advisor. While many might use this title, not all have your best interests at heart. So, carefully evaluate the potential choices and hire the right individual. Irrespective of the type of advisor you pick, you must know how they make money. Here are some examples:

Fee-only financial advisors
They make money from the fee you pay for their services. The fee is usually a tiny percentage of the assets they manage for you. Some may charge a flat or hourly rate for their services.

Financial advisors who earn commissions
Some earn sales commissions from third parties. They usually label themselves “free” advisors, meaning they will not charge you for the advice. However, sometimes, a part of their income is from third-party commissions and the rest from you.

Registered investment advisors
These are companies offering fiduciary financial assistance. They employ Investment Advisor Representatives (IARs), bound by fiduciary duty, and may have hundreds of advisors working for them. These are typically fee-based or fee-only advisors.

Robo-advisors
They offer automated, low-cost investment advice and assist people in materializing their long-term or short-term goals, such as retirement, via the preconstructed diversified portfolios of exchange-traded funds (ETFs).

Once you know the different types of experts, it is time to find a financial advisor that fits your budget.

Assess the costs
We recommend curtailing your search to fee-only advisors who merely charge for asset management and advice and do not get any compensation for selling you financial products. If they charge an hourly rate, it should be between $100 and $400. Many have a flat fee for their bundle of services, costing an average of $2,400.

Some advisors charge a percentage of assets managed annually. Their rates vary from 0.6 to 1.2 percent. Since the percentage is typically lower for those with higher account balances, these are the best financial advisors for those with enormous sums of money. They use cost-effective methods to help investors with complex financial lives or those holding more assets.

Check the credentials
After narrowing down a list of the best financial planners, check their credentials. You can hire certified financial planners (CFP) or chartered financial analysts (CFA); these designations mean they will work as fiduciaries. Such individuals have mastered a complex body of knowledge, cleared qualifying examinations, and agree to abide by the stated code of ethics.