How to Choose a Financial Advisor in New York — by Richard Siminou

Choosing a financial advisor is one of the most consequential financial decisions you'll make, and one of the easiest to get wrong. After more than 17 years working with clients across New York, I've seen what separates advisors who genuinely serve their clients from those who don't. Here's what I'd tell anyone going through that process.

Start with the fiduciary question

Ask directly: are you a fiduciary? A fiduciary is legally required to act in your best interest, not their firm's. Many advisors operate under a suitability standard instead, meaning they only need to recommend products that are suitable for you, not necessarily the best option available.

Get the answer in writing and ask when the fiduciary standard applies. Some advisors are fiduciaries only in certain contexts but not others. Clarity on this point matters more than almost anything else.

Understand how they're compensated

There are three primary compensation models: fee-only, fee-based, and commission-based. Fee-only advisors charge directly for their services and do not earn commissions on products. Fee-based advisors charge fees but may also earn commissions. Commission-based advisors earn money when you purchase specific products.

None of these models is inherently wrong, but you need to understand the incentives at play before you can evaluate the advice you're receiving.

Ask whether they specialize in clients like you

A business owner has fundamentally different financial planning needs than a salaried employee. If an advisor cannot speak specifically to business exit planning, key-person risk, non-qualified deferred compensation, or the intersection of business and personal finances, they may not be equipped to serve you well.

The same applies to pre-retirees, executives with concentrated stock positions, or anyone with a genuinely complex financial picture. Specialization matters.

Understand their planning process

A good advisor should be able to walk you through exactly what the first six months of working together would look like. What gets reviewed? What gets built? What decisions will you be making together and on what timeline?

If the answer is vague, that's a signal. A well-defined process usually reflects a well-organized practice.

Ask who else is on the team

Financial planning doesn't happen in isolation. The best advisors work in coordination with tax professionals and estate attorneys. Ask how those relationships work, whether they collaborate directly with your existing CPA and attorney, or whether that coordination is left to you.

Trust your instincts about communication

The right advisor should make you feel like you understand your financial situation more clearly after every meeting (not more confused). If you leave conversations with more questions than answers, or feel like you're being managed rather than advised, pay attention to that.

The relationship between a client and their financial advisor is long-term. Getting the selection right from the beginning saves significant time, money, and frustration.

Richard Siminou, MBA, is the founder and principal of Siminou Wealth Management, an independent financial advisory firm headquartered in Kings Point, New York. He specializes in financial planning for business owners, entrepreneurs, and pre-retirees across the New York metropolitan area. This article is for educational and informational purposes only and does not constitute investment, tax, or legal advice.

Learn more at siminouwm.com