The next time you go to Costco (COST), you may want to pick up some gold with that rotisserie chicken. Gold prices have been on a run lately, and what more convenient place can you find to buy a commodity?

In fact, the club store sells gold bars, silver coins, and platinum bars — three precious metals that many investors use to diversify their wealth.

The club store first offered gold bars in 2023, then added silver and platinum over the next year or so. Meanwhile, the price of gold continues to set all-time highs. Gold, silver, and platinum are all up substantially in 2025.

Intrigued by Costco's precious metals offering? Read on to learn key considerations for precious metals investing, the details of the Costco selection, and tips for managing your new investment.

Learn more: How to invest in gold in 4 steps

Investors view gold, silver, and platinum as stores of value, meaning they maintain their purchasing power over time without depreciating. However, the three metals have somewhat different characteristics. Those differences may influence how much of each you should own.

Gold is a "monetary metal," according to Vince Stanzione , CEO and founder of investment publisher First Information. Because gold prices often rise when the value of the U.S. dollar falls, many central banks hold gold to hedge against inflation and promote economic stability.

Recent economic worries, including the impact of tariffs on the U.S. economy, combined with ongoing demand from central banks, contribute to a generally positive medium-to-long-term outlook for gold.

Silver and platinum have greater industrial uses relative to gold. Silver is used in consumer electronics, electric cars, and solar panels, for example. Platinum is used in automotive applications such as catalytic converters and in the production of glassware, among other things. Due to the industrial demand, these two metals are more dependent on the economy than gold. This can encourage volatility in the short term.

Learn more: How to start investing in 2025: A step-by-step guide

Costco's precious metals selection includes:

1. 24-karat gold in 1-ounce bars

2. 20-count packs of 1-ounce silver coins

3. 999.5 pure platinum in 1-ounce bars

Costco’s precious metals pricing varies and is only visible online to members. However, reports indicate that Costco takes a markup of roughly 2% above gold's spot price.

It is normal for dealers to sell gold above the spot price. Markups can range from 1% to 30%, depending on the services the dealer provides. Relative to that range, Costco's 2% markup is reasonable.

As of November 7, 2024, you could buy Costco's silver coins for $699.99, and the platinum bars debuted in October at a price point of $1,089.99.

To buy precious metals from Costco, you must have an active Costco membership. And, since the metals are often out of stock, you must also have good timing. All purchases of gold, silver, or platinum must be made online at Costco.com. Also, Costco does not sell gold, silver, or platinum in Louisiana, Nevada, and Puerto Rico.

Costco limits buyers to one purchase per membership and a maximum of five units. At current prices, this caps your gold purchase at about $14,000. Silver and platinum buyers can only spend about $3,700 and $5,500, respectively.

For many investors, these amounts are too low to satisfy a diversification requirement or ensure long-term wealth. For context, Brandon Thor, CEO of The Thor Metals Group, recommends investing 10% to 20% of portfolio assets in gold to mitigate the risk of loss in a financial crisis. The well-known “All Weather Portfolio,” designed by billionaire investor Ray Dalio, includes a 7.5% gold position.

Precious metals do not need to be monitored the way stocks do, but you must safeguard your investment. Know that most standard homeowners insurance policies will not cover the full value of precious metals. Your carrier may allow you to add coverage for a fee, but the cost will dilute your returns.

With or without insurance coverage, you will need safe, secure storage. A safety deposit box may be an option, as is a hidden safe you keep at home.

Once your precious metal is locked away, you need only wait. Physical gold, silver, and platinum are long-term assets to hold until you need to use them. Historically, all three metals have demonstrated positive and negative growth periods in the short term. Committing to a longer holding period minimizes the chances you will need to sell when values are down.

Alex Ebkarian, COO and co-founder of precious metals dealer Allegiance Gold, explains, "If you look at gold through the lens of three to five years, then there will be less volatility and more meaningful growth."

Although Costco's purchase limitations are restrictive in terms of diversification needs, you may have good reason to include precious metals in your next Costco.com purchase. First, Costco's markup is reasonable. Second, physical gold, silver, or platinum held safely in a home safe can provide peace of mind. You will know that if an unlikely crisis degrades the U.S. dollar or stock prices, your precious metals should be holding value — if not appreciating.

With increasing financial uncertainty, people are jumping into gold (GC=F). And gold is responding with recent all-time highs. However, if you've started tracking the price of gold, you'll see it drop just as fast as it spins up.

Gold prices are notoriously volatile. If you want to invest in gold, you need to get comfortable with it.

Gold does not behave like cash, stocks, or bonds — and that is exactly what you're looking for in an alternative asset. Let's explore what you need to know by explaining the gold investing process in four steps.

Read more: What to know before buying gold, silver, or platinum from Costco

Gold's headlining characteristic is its ability to hold its value, or even appreciate when other assets are falling. Investors often use this behavior as a stabilizer. They rely on gold's strength in tenuous climates to limit unrealized losses in equities and inflation-related reductions in purchasing power of cash deposits.

Gold is also a widely recognized store of value. As such, the precious metal can potentially stand in as a medium of exchange if the dollar collapses. In this respect, "gold is an insurance policy" against economic calamity, according to Scott Travers, author of The Coin Collector's Survival Manual and editor of "COINage" magazine.

Learn more: How to start investing in 2025: A step-by-step guide

Given gold's historic behavior, three suitable investing goals for a gold position are:

Diversification into an asset that moves independently from stock prices

Protection against inflation-related loss of purchase power

Backup source of value and wealth in an unlikely economic collapse

Allocation is the composition of your portfolio across different types of assets, such as stocks, bonds, and gold. Setting a target allocation for each asset type helps you control risk over the long term. This is because asset values change over time. Stocks appreciate, for example. Unless you periodically rebalance your holdings to restore the target allocation, the appreciation can leave you over-concentrated in equities.

Travers recommends holding 5% to 15% of your net worth in gold. Other experts advise going as high as 20% if you are risk-tolerant. A review of gold's historic behavior in light of your risk appetite should help you identify the right allocation percentage.

Learn more: Track gold’s historical price here

Historically, gold has shown extended upcycles and downcycles. The precious metal was in a growth phase from 2009 to 2011. It then trended down, failing to set a new high for nine years.

In those lackluster years for gold, your position will negatively impact your overall investment returns. If that feels problematic, a lower allocation percentage is more appropriate. On the other hand, you may be willing to accept gold's underperforming years so you can benefit more in the good years. In this case, you can target a higher percentage.

The precious metal has been in the news lately and many analysts are bullish on gold. In February, Goldman Sachs expected gold to gain another 8% in 2025, after surging more that 40% in 2024. It's already blown past that 8% mark. Worries about tariffs and their impact on the U.S. economy are a primary factor.

Yahoo Finance video: Gold investing: Why ETFs can be the best way to go

Remember, too, that your target allocation includes the value of the gold you already own. Travers recommends checking your jewelry box before buying more gold. Given gold's sharp rise in value over the past 12 months and more, your gold jewelry may be worth more than you think.

Travers warns against selling your jewelry to buy gold coins because you will pay dealer fees on both transactions.

Once you define your target gold allocation, you must choose a form of gold to hold. Three options are physical gold, gold mining stocks, and gold ETFs.

Physical gold includes jewelry, gold bars, and gold coins. The advantages of physical gold include:

Peace of mind. If you keep your physical gold at home, it is available for you to use as a medium of exchange in an economic emergency.

No added volatility or ongoing fees. Gold mining stocks tend to rise and fall with gold prices, but business-related factors enhance their volatility. Gold ETFs charge administrative fees in the form of expense ratios.

Learn more: Take a deeper dive into the gold sector

The disadvantages of physical gold include:

Risk of theft or loss. Physical gold must be properly secured. Whether you store it in your home or with a depository, gold can be stolen. In October 2024 , a federal jury found Robert Leroy Higgins guilty of fraud charges after $50 million worth of precious metal disappeared from his business, First State Depository.

Lower liquidity. Physical gold is less liquid than stocks or ETFs. If you are not using the gold as a medium of exchange, you may need to locate a dealer and pay a markup on the sale.

Owning shares in gold mining stocks provides indirect gold exposure. The advantages of mining stocks over physical gold include:

Greater liquidity. Large-cap gold mining stocks like Barrick Gold Corporation (GOLD) and Franco-Nevada Corporation (FNV) generally enjoy a narrow bid-ask spread, which is a sign of liquidity. The bid-ask spread is the difference between what buyers will pay and what sellers will accept.

Easy to store. Stocks live in your brokerage account and do not consume physical space. In normal times, this is an advantage. In an economic catastrophe, this could be a disadvantage if brokers or the stock market are temporarily shut down.

Learn more: The top-performing companies in the gold industry

The disadvantages of gold mining stocks include:

Greater volatility. Since 2000, gold mining stocks have risen and fallen faster than gold spot prices. And in recent years, gold mining stocks have trended down even as gold has gained value.

No utility as a medium of exchange. Gold mining stocks can appreciate, but they have no direct utility as a medium of exchange.

Gold ETFs are funds that invest in gold mining stocks or physical gold. Their advantages include:

Easy to store. Like gold mining stocks, ETF shares are essentially digital assets with no storage requirements.

Greater liquidity. Shares of the most popular gold ETFs, like SPDR Gold Shares ($GLD), are heavily traded which implies good liquidity.

Tied directly to gold prices. ETFs backed by physical gold can be less volatile than gold mining stocks or gold mining ETFs.

Two disadvantages of gold-backed ETFs over physical gold are:

Fund fees. Funds charge fees, which dilute returns over time. For context, the expense ratio of SPDR Gold Shares is 0.40%. This translates to $4 in fees annually for every $1,000 invested.

No utility as a medium of exchange. As with gold mining stocks, you probably cannot use ETF shares to trade for food in an economic emergency.

After selecting the size and form of your gold investment, consider your investment timeline as a final suitability check. Gold can be volatile. It has also demonstrated extended periods of decline. Those behaviors are not acceptable if your timeline is short. The risk is too great that gold's price will be down when you need to liquidate.

An extended holding period also provides greater potential for reaching your goals. As an example, hedging against stock market declines or inflation is a long-term effort. These outcomes will continue to be risks as long as you own stocks or cash deposits. Holding gold as insurance against an economic calamity requires you to keep the asset until you need it.

A small gold position can act as a stabilizer for your stock portfolio and your purchasing power. If you choose physical gold stored at home, it can also stand in as currency in the worst of economic crises. Just know that gold has underperformed stocks in the past, so choose your target allocation accordingly.

A high-yield cash savings rate might outpace inflation, but you won't get rich from your monthly interest earnings. If you are committed to a wealthier future, adding an investment program to your savings strategy is the way to do it.

Use this step-by-step guide to establish a sustainable, profitable, and long-term investing habit that helps you realize your financial goals.

Investing involves the risk of financial loss. It also consumes cash that may be better used for other purposes, such as paying bills or repaying debt. For these reasons, it's wise to get your finances in order before you put money into appreciable assets like stocks or real estate.

Two important issues to address are high-rate debt and cash savings.

Average credit card interest rates usually run higher than 20%. That is roughly double the long-term average annual return of the stock market. It is also several times greater than real estate's long-term average annual appreciation.

The takeaway? Credit card debt costs more than you can realistically expect to make investing. This is especially true in the short term when asset performance can stray from the averages. If you have high-rate debt, pay it off before you invest.

Learn more: The best 0% APR credit cards

Cash savings functions like an insurance policy for your investment portfolio. With enough cash on hand, you should not need to reach into your investment account to cover unexpected expenses. You can instead leave your capital invested to reach its full potential.

Many experts recommend accumulating enough cash to cover three to six months of your living expenses. With this balance, you can hopefully withstand a layoff, health scare, car accident, or other expensive emergency without selling your investments.

Over time, cash loses purchasing power due to inflation. You can minimize that effect by storing your emergency funds in a high-yield savings account.

Before investing in a taxable format, make sure you are taking full advantage of tax-advantaged retirement accounts. The tax perks you get in a 401(k) or IRA are valuable and expedite your wealth production.

Learn more: 401(k) vs. IRA: The differences and how to choose which is right for you

A 401(k) is typically available through an employer, though you can set up a Solo 401(k) if you are self-employed. There are two types of tax treatments for 401(k) contributions, called traditional and Roth. Your 401(k) may offer one or both contribution types.

Traditional 401(k) contributions are taken from your paycheck before income taxes are calculated. They reduce your taxable income. Taxes on the investment returns are deferred until you make withdrawals. Withdrawals are taxed as income.

Roth 401(k) contributions are made with after-tax funds. They do not reduce your taxable income. However, you pay no taxes on the annual investment returns, and qualified withdrawals in retirement are tax-free.

Learn more: What is a 401(k)? A guide to the rules and how it works.

Whether you opt for tax-deferred or tax-free investment growth, your account balance appreciates faster relative to taxable investing. In a taxable account, your real return is the gain minus the taxes you pay on those gains. Many investors must withdraw funds from the account to pay those taxes, which reduces the invested balance and gain potential. Investing within a tax-deferred account, on the other hand, postpones the tax liability so your full balance can remain invested, compounded, and growing over time.

Many 401(k)s additionally offer employer-matching contributions, which also accelerates wealth. Experts recommend taking full advantage of employer-matching contributions before any taxable investing.

Learn more: How a 401(k) match works and why you should seek it out

IRAs are widely available from financial institutions and some smaller employers. IRAs also allow for traditional and Roth contributions, but not in the same account. You would deposit traditional contributions to a traditional IRA and Roth contributions to a Roth IRA.

IRAs, relative to 401(k)s, usually have more diverse investment options. IRAs also have lower contribution limits unless you are contributing to a SEP IRA through a business you own. Additionally, Roth IRA contributions are subject to income thresholds. If you earn a high income, you may not be eligible.

You can invest outside of your retirement accounts independently or with the help of an advisor. If you decide to seek outside guidance, you can choose from a robo-advisor or a full-service financial advisor.

A robo-advisor is a managed investing program. Investments are selected for you based on a stated risk profile and strategy. You may have access to a human advisor, or you may not.

Robo-advisors generally cost less than human advisors, but the investment programs may be too generic to serve your needs.

Learn more: Robo-advisor: How to start investing right away

Full-service financial advisors can tailor an investing strategy to your situation. Many will also guide you on other financial strategies, such as budgeting, debt repayment, and insurance.

Investment managers normally have higher fees than robo-advisors. Some earn trading commissions, while others charge an annual fee based on how much money they manage for you.

Learn more: How much does a financial advisor cost?

If you decide to invest on your own, your next step is creating an investing strategy that aligns with your goals, timeline, and risk tolerance. Your strategy can take different forms, but many investors express their approach as a target asset allocation.

Asset allocation is the composition of your investments across asset types. Because each asset type responds differently to market conditions, the way you combine them shapes your portfolio's overall risk level and performance.

Five common asset types are described below.

Stocks are ownership positions in companies. The most accessible stocks are those that trade on public exchanges, such as the New York Stock Exchange or the Nasdaq. Stocks are available for purchase within many taxable brokerage accounts and some IRAs.

Stocks can gain or lose value from one year to the next, but they tend to appreciate over the long term. Some stocks additionally provide cash income by way of dividends.

Read more: Check out the latest stock market news

Bonds are debt securities. The bond issuer is the borrower, and investors, called bondholders, are the lenders. Bonds are most readily accessible to individual investors through mutual funds and exchange-traded funds (ETFs).

Bond values can rise and fall with interest rate changes, but the terms of the debt do not change. If a bond promises to pay a fixed rate of 2% monthly and then repay you $1,000 when the debt matures, those things will happen — unless the issuer defaults.

Bonds provide stability and income within an investment portfolio.

Precious metals include gold, silver, and platinum. You can invest in these metals physically by purchasing coins or bars. You can also invest in funds that hold precious metals on behalf of their shareholders.

Learn more: What to know before buying gold, silver, or platinum from Costco

Precious metals appreciate over long timeframes, but they can be reactive to economic conditions. Gold, for example, tends to rise in value when investors are feeling uncertain about the stock market. For this reason, gold is often held as protection against stock market downturns.

The downside is that gold can remain flat or negative when stocks are performing.

Read more: How to invest in gold in 4 steps

Cryptocurrency is decentralized digital currency. Decentralization means no bank or government agency oversees or regulates transactions. The most popular cryptocurrencies are bitcoin and ethereum.

Cryptocurrencies can be volatile and unpredictable. As an example, bitcoin lost more than two-thirds of its value between late 2021 and early 2023. It then set record highs multiple times in 2024.

Some investors hold cryptocurrencies to diversify their investment holdings. Others use these currencies to make private, low-cost money transfers around the world.

You can invest in real estate directly or indirectly. The direct method is to purchase real property to resell or rent. If you prefer to be less hands-on, you can buy securities that invest in real estate. These are more volatile than physical property because they can be traded quickly. Their market values, therefore, can be more reactive to financial market conditions.

Investors purchase real property for appreciation potential and rental income. The long-term average annual appreciation for real property underperforms the stock market, but home prices are less volatile than stocks.

Real estate securities are popular as diversification assets.

You can amplify your results by investing regularly, and a budget helps you do that. Choose an amount you can funnel into your investment account monthly without impacting your ability to pay bills. Assuming you are maxing out available retirement contributions, you can start small — say, $50 monthly. Plan on raising the amount as you build your investing skills and confidence.

You can stay on track by automating the funds transfer into your investment account. If possible, automate the trades as well. Doing so removes emotion from your trading decisions and establishes investing as a habit.

Even if your portfolio is simple, it will require some maintenance. Tasks to consider annually include evaluating results, validating your strategy, and rebalancing.

Check the performance of your holdings against their peers. For example, if you have an S&P 500 index fund, verify that it is performing on par with other S&P 500 funds.

Review your target allocations and the portfolio's overall performance. Consider whether you need adjustments to lessen volatility or improve growth potential.

Rebalancing is the process of restoring a targeted asset allocation.

Say you like the moderate growth profile of a portfolio with 60% large-cap stocks and 40% U.S. Treasury securities. Even though you make ongoing investments in this ratio, your portfolio likely reflects something different. This is because stock values can rise or fall, but bonds remain relatively stable. Usually, you will end up with a higher-than-intended stock percentage, which increases your risk. To rebalance your 60/40 allocation, you would sell some of your stock positions and use the proceeds to buy U.S. Treasurys.

You will not need to rebalance if you use a robo-advisor or a human advisor. Also, human advisors should periodically initiate conversations to evaluate results and validate the strategy.

Learn more: 5 questions to ask your financial advisor

If you are making regular retirement contributions, adding a modest taxable investment program is a wise addition to your wealth plan. Whether you opt for professional help or independent investing, learning about asset types and allocations will make your wealth journey more rewarding — and potentially, more profitable.

If you need help managing your money or you’re not sure whether you’re on track for a major life goal, a financial advisor can be an important ally.

A financial advisor is a professional who helps you create and implement a financial plan, manage your finances, and monitor your progress as you work toward your fiscal goals.

But the term “financial advisor” is a fairly broad one. Financial advisors often hold various licenses and certifications, but there’s no specific credential that someone needs to hold in order to call themself a financial advisor — though many common services financial advisors provide, like buying and selling securities, do require a license. That makes it extra important to vet an advisor and make sure they’re qualified to help you manage your money.

If you’re debating whether to hire a financial advisor and aren’t sure where to start, you’re in the right place. In this article, you’ll learn about the different types of financial advisors, what financial advisors do, how much a financial advisor costs, and how to choose the best advisor for you, including knowing which questions to ask.

There are many different titles a financial advisor can go by, each of which has different requirements. Many of the types of financial advisors listed below work as personal financial advisors, meaning they primarily provide advice to individuals. However, some of the professionals listed below may focus on advising corporations or organizations instead.

Learn more: Alternatives to having a financial advisor: How to build wealth without one

When you decide what type of advisor you want to work with, it’s important to understand the difference between a fiduciary vs. non-fiduciary advisor. Many (but not all) financial advisors are held to a fiduciary standard, which means they’re required to act in their client’s best interest. A fiduciary must disclose any potential conflict of interest to the client up-front.

Other types of advisors are only held to what’s known as a suitability standard. That means they’re required to make recommendations they believe are appropriate for their client’s needs.

Learn more: Your guide to investing in 2024

An investment “adviser” is paid to provide advice about securities like stocks and bonds. Anyone who provides investment advice (as most financial “advisors” do) must register with either the U.S. Securities and Exchange Commission (SEC) or state securities regulators, depending on the value of assets under management. They’re also required to hold a securities license.

Many investment advisers work for major financial firms. However, an independent investment adviser or independent financial advisor is someone who’s usually self-employed but has met all licensing standards required by the SEC or state regulators. Some people prefer an independent financial advisor when they’re seeking personalized and objective advice since the advisor isn’t connected to any firm or family of funds.

A broker, broker-dealer, or stock broker is someone who buys and sells securities on their clients’ behalf. Broker-dealers must register with the SEC and are often paid a commission. Their recommendations must meet the suitability standard, but they don’t have a fiduciary duty to their clients. Like investment advisers, broker-dealers must have a securities license.

Just as you don’t need any specific credentials to call yourself a financial advisor, anyone can call themselves a financial planner. However, a certified financial planner, or CFP, is someone who has met the requirements of the Certified Financial Board of Standards, Inc. Some CFPs offer comprehensive financial planning, while others focus on specific areas, like retirement or insurance planning.

A CFP must complete a CFP Board-approved education program, have the equivalent of at least three years of full-time financial planning experience, pass an exam, and follow the CFP Board’s code of ethics. Certified financial planners are held to a fiduciary standard.

Learn more: Your guide to retirement planning

A financial analyst develops investment strategies for companies and clients. The role often involves monitoring economic trends, analyzing financial statements, and developing financial models. Though some financial analysts may serve as personal financial advisors, financial analysts are more commonly employed by large corporations.

A financial consultant performs many of the same roles as a financial planner. Some financial consultants hold the chartered financial consultant (ChFC) designation, which is issued by the American College of Financial Services. ChFCs must complete a series of financial planning coursework and exams and abide by the American College code of ethics.

A wealth manager is a type of financial advisor who specializes in high-net-worth clients, often with investable assets of $1 million to $5 million or more. Though there’s no single credential required to become a wealth manager or wealth advisor, many hold multiple designations like CFP, certified public accountant (CPA), or chartered financial analyst (CFA) credentials.

“Financial coach” is another broad and unregulated term that pretty much anyone can use. Financial coaches offer education, support, and accountability to clients seeking to make informed financial decisions. The National Financial Educators Council provides certifications for coaches to help clients meet financial aspirations.

A robo-advisor is a digital advisor that automates your investments using algorithms. Usually, a robo-advisor asks you a few questions about your goals and risk tolerance and then recommends an investment portfolio of exchange-traded funds (ETFs). Robo-advisors then periodically rebalance your portfolio to ensure your investments are still in sync with your goals.

Many major brokerages offer robo-advisor services, and they’re often significantly cheaper than the cost of hiring a human. Typical robo-advisor fees are 0.25% to 0.9% of assets under management (AUM), making them a good choice for beginning investors.

The types of services a financial advisor provides can vary widely. Some financial advisors provide comprehensive financial planning. Others focus on a specific niche, like investing, retirement planning, or insurance.

Learn more: Your guide to life insurance

You can also find financial advisors who work primarily with people in specific professions. For instance, you may find advisors who cater specifically to physicians, attorneys, small-business owners, or military members.

Financial advisors can provide a wide range of services, including:

Assessing your cash flow and making a budget

Making a plan to pay off debt

Planning for the financial aspects of starting a business

Developing an investment strategy based on your goals, risk tolerance, and time horizon

Evaluating your life insurance and disability insurance needs

Saving for a child’s college education

Working on major financial goals, like a home purchase

Retirement planning, including income and withdrawal strategies

Tax planning strategies

Estate planning

Learn more: How to begin investing in real estate

The cost of a financial advisor varies based on their compensation structure. Financial advisors are typically paid using one of the following models:

Percentage of assets under management (AUM): Many financial advisors charge a percentage of assets under management (AUM), often between 0.5% to 1.5%. So if you had $100,000 under management and your advisor charges a 1% AUM fee, a financial advisor would cost you $1,000 annually.

Hourly or flat fees: Some financial advisors charge hourly fees, often in the range of $200 to $400 per hour. Others may charge a flat fee for a specific service, like creating a comprehensive plan. However, these arrangements are most common when an advisor provides a one-time or occasional service, rather than an ongoing engagement.

Commissions: Some financial advisors earn commissions when they sell you products like mutual funds, annuities, or life insurance. Commissions vary based on the type of product. Commission-based fees sometimes attract criticism because they create potential conflicts of interest.

Hybrid model: Financial advisors may use a hybrid compensation structure that includes both fees and commissions. For example, an advisor may charge you an AUM fee or hourly rate for holistic financial planning services, but they may also earn a commission if they sell you a product.

Learn more: How much does a financial advisor cost?

To choose a financial advisor, first determine what services you want. If you’re looking for ongoing guidance on managing your money, a certified financial planner who offers holistic financial planning may be a good fit.

But if you want advice on a specific topic, you might look for someone who has expertise in that area. For instance, if you’re seeking advice on life and disability insurance, an advisor who holds the chartered life underwriter (CLU) designation may be a good fit, whereas if you need tax planning services, you could look for an advisor with a CPA license.

Consider asking family members and friends if they have a financial advisor they recommend. Some other good resources for finding a financial advisor include:

The National Association of Personal Financial Advisors

Certified Financial Planner Board

Financial Planning Association

Make sure you verify any licenses or credentials the professional claims they hold. Use the SEC’s Investment Adviser Public Disclosure search tool to look up any investment adviser’s Form ADV, where you’ll find information like the licenses they hold, years of experience, employment history, complaints, and disciplinary record. You can also check with the issuing organization, i.e., the CFP Board if someone says they’re a certified financial planner or the CFA Institute for CFAs, to verify they’re in good standing.

Consider meeting with a few different financial advisors to find someone you’ll feel comfortable working with. Some questions to ask them:

What services do you provide?

How are you compensated, and what are your fees?

How often will we meet or communicate?

Will we have a fiduciary relationship?

What type of client do you typically work with?

Do you have any disciplinary history?

Do you consult with other professionals, like CPAs or estate attorneys?

Learn more: 5 questions to ask your financial advisor before year-end

Once you’ve found a financial advisor you want to hire, you’ll both need to sign a letter of engagement. This letter should outline the scope of services the advisor will provide, disclose any potential conflicts of interest, and spell out each party’s obligations.

It’s important to have open communication with your financial advisor. Be sure you’re honest about your finances, including your assets and debts, and that you notify them about any major life changes. If you find that you’re not comfortable talking openly with your advisor, it may be a sign that you should look for a different professional.

What does a financial advisor do, exactly?

A financial advisor may provide comprehensive financial planning and ongoing investment portfolio management. However, some financial advisors provide a la carte specialized services. The scope of services your advisor will provide should be clearly stated in the letter of engagement that both of you sign.

How does a financial advisor make money?

Many financial advisors earn money from fees for their services. Advisors may charge fees as a percentage of assets managed or on an hourly or per-service basis. Some advisors earn commissions on the products they sell, or they earn a combination of fees and commissions.

How much money should you have to hire a financial advisor?

A financial advisor may require a minimum of $50,000 to $100,000 in liquid assets to work with a client. However, many advisors have higher or lower requirements, so be sure to ask when you set up a meeting. Many robo-advisors have significantly lower minimums.