Are you a fiduciary at all times, in writing?
The qualifier matters. Some advisors are fiduciaries when planning and brokers when selling. Ask them to state in writing that the fiduciary duty applies to every recommendation they make to you.
Choosing a Financial Advisor in San Diego
Fiduciary duty, fee models, credential verification, and the local situations that need specialist advice.
Last updated
Quick answer
The most important question is not what an advisor charges but who they legally work for. A registered investment adviser owes you a fiduciary duty at all times; a broker-dealer representative operates under a lower best-interest standard and may earn commissions on what they sell you. Fee-only advisors are paid solely by you, typically about 1% of assets annually, a flat retainer of roughly $2,000 to $10,000 a year, or hourly rates around $200 to $500. Fee-based means both fees and commissions — the word is deliberately confusing, so ask the question directly and get the answer in writing. Verify anyone before you hire them: brokers on FINRA BrokerCheck, investment advisers on the SEC's Investment Adviser Public Disclosure site, and CFP holders on the CFP Board's verification page, which shows public discipline. Locally, ask about specialties that actually apply here: military pensions and the Blended Retirement System, biotech and defense equity compensation, California's high state tax on capital gains, and real estate concentration in a market where the house is often the biggest asset on the balance sheet.
Fee models compared
| Model | Typical cost | Watch for |
|---|---|---|
| Fee-only, AUM | ~0.5-1.25% of assets/year | Cost grows with portfolio; ask about breakpoints |
| Flat-fee / retainer | ~$2,000-$10,000/year | Scope of what's included |
| Hourly / project | ~$200-$500/hour | Good for one-time plans |
| Fee-based | Fees plus commissions | Ask which products pay them |
| Commission only | Paid by product sponsors | Annuity and insurance sales incentives |
Questions that reveal the real answer
Ask these five in the first meeting and take notes.
How exactly are you compensated?
Total cost includes the advisory fee plus fund expense ratios, trading costs, and any product commissions. Ask for an all-in annual number in dollars for a portfolio your size.
What's your discipline and complaint history?
Check BrokerCheck and IAPD yourself rather than taking their word. Both are free, take minutes, and show customer disputes, terminations, and regulatory actions.
Who is your typical client?
An advisor whose book is retired federal employees may be a poor fit for a founder with concentrated stock. Ask for anonymized examples of clients with your profile.
What happens if you retire or sell the practice?
Succession is a real risk with solo advisors. Ask what continuity plan exists and who takes over your accounts.
San Diego planning situations
Military retirement
The legacy pension versus Blended Retirement System decision, Thrift Savings Plan allocation, Survivor Benefit Plan election, and VA disability interaction with retired pay are technical. Look for advisors with real military client experience, and be skeptical of anyone pitching insurance products on base.
Equity compensation
RSU vesting schedules, ISO alternative minimum tax exposure, and 10b5-1 plans for public-company employees all need planning before the calendar year closes.
California tax drag
With capital gains taxed as ordinary income at the state level, asset location, municipal bond choices, and the timing of realizations matter more here than in a no-income-tax state.
Real estate concentration
Many San Diego households have most of their net worth in one property. A good advisor addresses that concentration honestly rather than ignoring it because it isn't a fee-generating asset.
Cross-border families
Dual residency, foreign accounts, and inheritance across the border create reporting obligations most generalists don't handle. Ask before assuming.
Red flags
- • Guaranteed returns, or any pitch that avoids discussing downside.
- • Pressure to move assets quickly, especially into annuities or whole life policies with long surrender periods.
- • Refusal to put fees and fiduciary status in writing.
- • Custody of your money in the advisor's own name — assets should sit at an independent custodian in your name.
Frequently asked
What's the difference between fee-only and fee-based?
Fee-only advisors are paid exclusively by clients and earn no product commissions. Fee-based advisors charge fees and can also earn commissions, which creates a conflict of interest you should understand before hiring.
How do I verify a financial advisor in San Diego?
Search brokers on FINRA BrokerCheck, investment advisers on the SEC's Investment Adviser Public Disclosure site, and CFP certificants on the CFP Board's verify tool. All three are free and show disciplinary history.
How much should financial advice cost?
Roughly 1% of assets a year is the common AUM benchmark, with flat annual retainers of about $2,000 to $10,000 and hourly rates of $200 to $500 as alternatives. Compare total cost including fund expenses, not just the advisory fee.
Do I need an advisor at all?
Not necessarily. If your situation is a workplace retirement plan and index funds, an hourly or project-based planner for a one-time checkup often makes more sense than ongoing asset-based fees.
Keep reading
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