I’m a 47-year-old surgeon, my wife and I make $573,000/year, but we still feel broke — is our financial adviser ripping us off?

Not all financial advisers are created equal

Whenever you place your finances in the hands of someone else, you take a risk — but the risk is greater with certain kinds of advisers.

First and foremost, if your adviser isn’t a fiduciary, you could have a problem. A fiduciary has a legal duty to act in your best interest and give you advice that's right for you. Someone who is not a fiduciary doesn’t have the same strong legal obligations.

It may come as a surprise, but not all people who bill themselves as financial advisers have fiduciary status. Some professionals, like Certified Financial Planners, are held to a fiduciary standard but many individuals can offer financial advice even if they don’t have this special designation.

You’ll also want to see what licensing your adviser has. Ideally, you’ll want someone with independent certification, such as a CFP or a chartered financial analyst. Advisers who are licensed by independent agencies are typically held to higher ethical standards and have had to undergo specialized training and complete exams.

Finally, you’ll want to find out how your adviser charges. If they work on commission, this can create a conflict of interest because they may be tempted to steer you into investments that earn them the most money even when those investments aren't actually the best ones for you.

Your adviser will ideally be fee-only and will charge you a predetermined, agreed-upon fee for managing your assets. AdvisoryHQ reports that the average adviser fee for someone with $1 million in assets came in at around 1.02% in 2023. If your adviser is charging much more than that, their fee structure may be unfair.

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What to do if you suspect your financial adviser is ripping you off

If you’re concerned about whether your adviser is ripping you off, ask to see your account statements, a summary of your transactions, and a summary of what you’ve paid to your adviser. You should also ask them if they’re acting as a fiduciary.

If they say they aren’t a fiduciary, then consider changing advisers to one who is. If they’re unwilling to provide the documents you’re asking for, this is a major red flag and you may want to get legal help to recover your records and potentially take action if fraud is found.

Once you have your financial details in front of you, review the information carefully to see where your money is going, what fees you’re paying, and what ROI you’ve earned. Ask any questions you have to get to the bottom of why you don’t feel rich when you’re making so much.

Ultimately, whether it’s lifestyle decisions you’ve made or bad investments, you should have plenty of money to save, grow your wealth and live a comfortable life on an income of $573,000. If you aren't doing that now, consider looking for a different licensed, fee-only adviser who can help you make a better plan for your financial future.