Finding a financial advisor who understands elder care — what to look for
Reviewed by the How To Help Your Elders editorial team
Your parent has been working with the same financial advisor for fifteen years, and that person has done fine managing investments. But now your parent is 78 and might need care soon, and the investment portfolio seems less relevant than the bigger questions: how long will the money last, what happens to assets if care costs spike, and how does any of this connect to Medicare and Medicaid? The advisor who was perfect at 55 may not be the right advisor at 78. Finding someone who understands elder care specifically can mean the difference between a plan that works and one that falls apart at the worst possible time.
Fiduciary vs. Suitability: The Distinction That Matters Most
A fiduciary is legally required to put your parent's interests ahead of their own. A fiduciary advisor must disclose if an investment pays them extra commission. They cannot recommend something that benefits them more than your parent. Some advisors are fiduciaries for everything they do. Some are fiduciaries only for certain types of advice. Some are not fiduciaries at all.
Many stockbrokers and insurance salespeople operate under a suitability standard, which means they only have to recommend something that is suitable for your parent, not the best option available. The difference matters. A suitable investment might return 4% while the best option returns 6%, but as long as the recommendation is not actively harmful, it meets the suitability standard. According to the SEC, this distinction is one of the most misunderstood aspects of the financial advisory industry, and consumers routinely assume all advisors are held to the same legal standard. They are not.
A fee-only advisor charges your parent directly through a percentage of assets under management, an hourly rate, or a flat retainer. They earn no commission on products. This structure eliminates the conflict of interest where an advisor profits from recommending one product over another. Fee-only does not automatically mean better, but it means you can trust that the advisor is not getting paid extra to steer your parent toward a specific investment or insurance product.
A Certified Financial Planner (CFP) has passed a rigorous exam and commits to ongoing education and fiduciary conduct. The CFP credential is the most recognized and rigorous certification in financial planning. But a CFP who specializes in young professionals building wealth may be out of their depth helping a 78-year-old manage assets while dealing with care costs, Medicare premiums, and Medicaid planning. Credentials matter, but relevant experience matters more.
Why Most Financial Advisors Do Not Understand Elder Care
Most financial advisors are trained to manage investments. They understand stocks, bonds, and diversification. But they may not understand Medicaid spend-down rules. They may not realize that accessing certain assets too quickly can disqualify your parent from benefits. They may not consider the tax implications of which account to draw from for care costs. They may not ask about long-term care goals or family dynamics at all.
According to the Certified Financial Planner Board, fewer than 10% of CFP professionals list elder care planning as a specialty area. The field is growing, but most families looking for this expertise are working from a small pool of advisors.
The best advisor for your parent at this stage of life knows how to coordinate investments, tax planning, healthcare decisions, and care planning together. They ask questions like "What if you need assisted living in five years? Where does that money come from?" and "How do we structure things so your assets are protected but you still qualify for means-tested benefits if needed?" They understand that your parent is not building wealth. They are managing a financial picture that needs to sustain care, preserve quality of life, and possibly stretch across a decade or more of declining health.
You also need an advisor who is comfortable working with family. If your parent is developing cognitive changes, you may need to take over financial decisions eventually. Some advisors will not talk to adult children without the account owner present. If that becomes your situation, you will need a new advisor in a crisis. Find someone now who builds family involvement into their practice.
Evaluating Your Parent's Needs
Before hiring an advisor, be honest about what your parent actually needs. Some people want help with investment management. Others want planning help: someone to think through what happens if care is needed, how to structure taxes efficiently, and when to draw from which accounts. These are different needs and may require different advisors.
What is your parent's net worth? Advisors often have minimums. An advisor managing large portfolios may not accept a client with $300,000. If your parent's assets are smaller, online advisors, robo-advisors, or fee-for-service planners who charge by the hour may be more appropriate and affordable.
What is the timeline? If your parent is 72 and expects to need care within five years, the approach shifts entirely. You are not building wealth. You are managing a declining asset base while maximizing what it can do for care. An advisor who thinks in ten-year horizons is not the right fit. You need someone comfortable with shorter planning windows.
How complicated is the situation? A simple portfolio, Social Security, and a pension may not need a full-service advisor. Multiple properties, significant retirement accounts, business income, or family complications may require a team: an elder care financial planner, a tax specialist, and an estate attorney.
Is your parent at risk for financial exploitation? If there are signs of cognitive decline, an advisor who is alert to unusual activity can be a valuable safeguard. According to the CFPB, financial advisors are increasingly trained to identify signs of elder financial abuse and many firms now have protocols for reporting suspected exploitation. An advisor who will partner with you on protecting your parent is worth seeking out.
Can your parent afford professional advice? Advisor fees vary widely. Some charge 0.5% to 1.5% of assets annually. Others charge flat fees or hourly rates. On a $300,000 portfolio at 1% annually, that is $3,000 per year. Worth it if the advisor identifies tax savings, prevents costly mistakes, or keeps your parent from being exploited. Less worth it if the situation is straightforward and could be managed with occasional consultations.
How to Find and Vet the Right Person
Ask specific questions. Is the advisor a fiduciary for all services or just some? Do they earn commission on any recommendations? What is the fee structure? Do they have experience with clients in their 70s and 80s dealing with care costs? Are they comfortable with family members being involved?
Look for credentials. CFP is the most rigorous financial planning certification. CFA (Chartered Financial Analyst) is valuable but more investment-focused. ChFC (Chartered Financial Consultant) is similar to CFP. An EA (Enrolled Agent) designation is useful for tax issues. These credentials signal that someone invested in professional development, but they do not replace relevant experience with elder care situations.
Ask for references from older clients in similar situations. Call them. Ask whether the advisor was proactive about care planning, responsive, and easy to reach. Ask whether they felt heard.
Run background checks. The SEC's Investment Adviser Public Disclosure (IAPD) database shows complaints and disciplinary history for registered investment advisors. FINRA's BrokerCheck shows similar information for brokers. Multiple complaints or significant disciplinary actions are a red flag. According to FINRA, checking BrokerCheck before hiring an advisor takes about five minutes and is one of the most effective consumer protections available.
Interview multiple advisors. Many offer free initial consultations. Bring your parent and yourself. Does the advisor listen more than they talk? Do they ask good questions about goals? Do they explain things clearly? If something feels off, keep looking.
Once your parent chooses someone, stay involved enough to understand the general strategy. If your parent becomes unable to manage finances, you need to already have a relationship with the advisor so the transition is smooth. If the situation changes because of health decline or a new care need, tell the advisor. The original advice may have been perfect for the old situation and wrong for the new one. Good advisors reconsider their recommendations when circumstances change.
Frequently Asked Questions
What is the difference between a fiduciary and a non-fiduciary advisor?
A fiduciary is legally required to act in your parent's best interest and disclose conflicts of interest. A non-fiduciary operates under a suitability standard, meaning they only need to recommend products that are not inappropriate, even if better options exist. Always ask whether an advisor is a fiduciary, and get the answer in writing.
How much should my parent expect to pay a financial advisor?
Fee-only advisors typically charge 0.5% to 1.5% of assets under management annually, or $150 to $400 per hour for planning work. Commission-based advisors may cost nothing upfront but earn commissions on products they sell. The total cost depends on the service model and the complexity of your parent's situation.
What credentials should I look for in an elder care financial advisor?
A Certified Financial Planner (CFP) designation is the gold standard for comprehensive financial planning. Some advisors also hold the Certified Senior Advisor (CSA) or Chartered Advisor for Senior Living (CASL) designation, which indicate specific training in issues affecting older adults. Experience with elder care clients matters as much as credentials.
Can I be involved in my parent's financial advisor meetings?
Yes, if your parent authorizes it. Most advisory firms can add you as an authorized contact or trusted contact on the account. If you hold power of attorney, you have broader rights to participate. Find an advisor who welcomes family involvement rather than one who treats it as an inconvenience.
What if my parent's current advisor is not meeting their needs?
You can switch advisors at any time. Most account transfers take two to four weeks. There is no obligation to stay with an advisor who does not understand your parent's current situation. A transition meeting with the new advisor where you review the full financial picture is the best way to start.