Choosing a counsellor

How to Find a Therapist That's Right for You: 9 Key Tips

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If you’re considering therapy — whether it’s to restore a relationship, recover from a trauma, adjust to a new life phase, or improve your mental health — finding the right therapist is the first hurdle to cross.

Researchers have found that the bond between you and your therapist is likely to have a big impact on your growth. That’s why it’s important to do your research, ask questions, and pay attention to your own responses in your search for the therapist that’s right for you.

Here are some tried-and-true methods for finding a therapist to help you reach your therapeutic goals.

If you plan to pay for therapy through your insurance plan, your first step might be to look through your plan’s provider network.

It’s also a good idea to find out whether your plan limits the number of sessions you can attend each year and whether using an out-of-network therapist will affect your out-of-pocket costs.

Looking for ways to support your mental health and well-being? Try Healthline’s FindCare tool to connect with mental health professionals nearby or virtually so you can get the care you need.

A referral from a friend, colleague, or doctor you trust is another way to find a therapist who might be a good fit for you.

While a referral is a good place to start, it’s important to recognize that you may have different needs and goals with your therapy than the person giving you the recommendation.

So, a good match for one of you might not be as beneficial to the other.

A number of mental health organizations maintain up-to-date, searchable databases of licensed therapists.

Your search could start as simply as typing in your ZIP code to generate a list of counselors in your area. You may also be able to search for specialists, like marriage and family counselors or therapists who focus on drug and alcohol use.

Some of the most commonly used online search tools include:

American Psychological Association
American Association of Marriage and Family Therapists
Association of LGBTQ+ Psychiatrists

Your community may also have resources to help you. If you’re a student, your school might provide access to a counseling center.

If you’re employed, your human resources team might offer a list of therapists available through a workplace wellness or employee assistance program.

If you need counseling related to domestic or sexual abuse, you might be able to find group or individual therapy through a local advocacy organization.

If you want your faith to inform your treatment, you might consider reaching out to your church, synagogue, mosque, or other worship center for a list of licensed therapists affiliated with your faith.

If you’re looking for a therapist to help with a specific mental health condition, you might find local therapists through a national association, network, or helpline.

Here are a few examples of organizations that offer search tools to help you find a specialized therapist near you:

National Eating Disorders Association
Anxiety and Depression Association of America
National Center for PTSD

If your job is a source of stress and anxiety, you might find local therapists through a professional organization.

Many of these organizations and trade unions have resources to help you identify professionals who can assist with mental health needs. For example, the International Association of Firefighters offers help with mental health, post-traumatic stress disorder (PTSD), and substance use.

Resources for People of Color

Access to culture-conscious therapists is important for your well-being. Here are some resources to consider when looking for a therapist:

The Yellow Couch Collective, an online support group for Black women
Therapy for Black Girls
Black Mental Health Alliance
The National Asian American Pacific Islander Mental Health Association, a nonprofit dedicated to the mental health and well-being of the Asian American and Pacific Islander communities.
WeRNative, which provides Native American youth with tools for holistic health and growth, including mental health resources.
Therapy for Latinx

What do you want to accomplish in therapy? Studies have found that when you and your therapist both work together toward the same goals, your outlook will be better.

If you think some type of medication may help with your symptoms, you’ll want to find a psychiatrist or practitioner who can prescribe medications.

If you’ve heard that cognitive behavioral therapy (CBT) or eye movement desensitization and reprocessing (EMDR) therapy have been effective for others with your condition, you’ll want to look for a therapist with certifications or specialized training in those treatment approaches.

If you want to be part of a supportive network of people who understand your experiences, you may want to consider looking for a therapist who’s involved with support groups or group therapy sessions.

Your goals may change as you work with a therapist. It’s OK to talk with your therapist about changing the direction of your treatment plan as your needs evolve.

Talkspace and Betterhelp both offer tools to help you explore the kind of therapy you want. They can also match you with a licensed, accredited therapist you can work with online or via phone.

Some people find a digital therapy platform to be more convenient and more affordable than in-person therapy. Weekly sessions range from $35 to $80 for online therapy.

At least one study found that people with depression felt that their symptoms improved after online sessions. It’s worth noting, however, that two of the researchers involved with this study were consultants or employees of the digital therapy provider used.

When you meet your therapist, whether it’s online, on the phone, or in person, it’s not uncommon to completely forget every question you wanted to ask.

To make sure you have the information you need to make a good decision, keep paper and a pen, or a notes app, handy for a few days before your meeting. Jot down questions as they come to you.

The American Psychological Association suggests a few questions for you to consider asking your therapist during your first session:

Are you a licensed psychologist in this state?
How many years have you been in practice?
How much experience do you have working with people who are dealing with [the issue you’d like to resolve]?
What do you consider to be your specialty or area of expertise?
What kinds of treatments have you found effective in resolving [the issue you’d like to resolve]?
What insurance do you accept?
Will I need to pay you directly and then seek reimbursement from my insurance company, or do you bill the insurance company?
Are you part of my insurance network?
Do you accept Medicare or Medicaid?

The Anxiety and Depression Association of America adds questions like these:

If I need medication, can you prescribe it or recommend someone who does?
Do you provide access to telehealth services?
How soon can I expect to start feeling better?
What do we do if our treatment plan isn’t working?

Note: If you’ve ever been abused by someone in authority or affected by historic trauma or racism, you may want to ask questions that help you find out whether a potential therapist is culturally informed and sensitive to your experiences.

Pay attention to red flags

Regardless of whether you see a therapist in-person or virtually for the first time, you’ll want to pay attention to any factors that make you feel uncomfortable. Therapy is meant to be a welcoming and accepting space for any and all feelings that come up.

Some red flags to potentially look out for include:

Does the room make you feel physically uncomfortable? Does it feel private and secure?
Are you experiencing overwhelming feelings of anxiety or panic? Some anxiety or nervousness is understandable, but you’ll want to communicate to your therapist if you’re experiencing symptoms of an anxiety or panic attack.
Do you feel comfortable telling your therapist anything? Are they making you feel judged or uneasy in any way?
Is your therapist completely present with you throughout your session?

No matter how many professional accreditations your therapist has, your own feelings of trust and comfort should be your top priority. Will therapy be uncomfortable from time to time? Possibly. After all, you’ll likely be discussing difficult, personal topics.

But if you feel uncomfortable with your therapist for any other reason, it’s all right to look for someone else.

You don’t need a reason to switch therapists. It’s enough that you don’t feel comfortable.

Here are a few things to notice as you talk with your therapist:

Does the therapist interrupt you, or do they listen carefully to what you’re saying?
Does the therapist respect your time by being prompt to appointments?
Does the therapist brush off or invalidate your concerns?
Do you feel seen, heard, and respected during your session?

Teletherapy, which is therapy done remotely over the phone or via videoconferencing, makes it easy to explore therapy and its options. It’s convenient, and studies have shown that therapy conducted over video chat can be just as effective as in-person therapy.

Here are some options.

BetterHelp

This option has over 12,000 licensed professionals in its network, including psychologists, clinical social workers, and marriage and family therapists. BetterHelp therapists can help people with anxiety, depression, addiction, grief, and other issues.

Read our full review of BetterHelp here.

Get 20% off your first month

Get started with BetterHelp

Talkspace

With over 3,000 licensed therapists, Talkspace offers options for people with a wide range of needs, from depression to PTSD. They offer counseling for individuals, couples, and teens.

Read our full review of Talkspace here.

Get $100 off using code SPACE

Get started with Talkspace

Amwell

If you’re looking for physical and psychological health services, with doctor or therapist visits available 24/7, Amwell is a great user-friendly platform. Couple and individual therapy sessions are available for trauma, depression, life transitions, and more.

Read our full review of Amwell here.

Get started with Amwell

Teen Counseling

This is a great resource for teens ages 13 to 19 and caregivers. The therapists in Teen Counseling specialize in issues affecting teens, such as stress and eating disorders. The platform offers live chats, phone calls, videoconferencing, and messaging with licensed therapists.

Read our full review of Teen Counseling here.

Get started with Teen Counseling

Pride Counseling

This option offers safe and supportive mental health services for LGBTQ+ people. Pride Counseling matches you with a counselor who fits your therapy objectives and needs.

Read our full review of Pride Counseling here.

Get started with Pride Counseling

	Pricing	Insurance coverage	Highlights	What it’s best for
BetterHelp	Cost ranges from $60 to $90 a week depending on your plan and how often you see your therapist. You’ll be billed monthly.	Not accepted	– You can talk to your therapist via text, live chat, phone call, and video – It’s easy to change therapists – There’s financial aid available	Quick and easy access to licensed professionals
Talkspace	$276 to $396 per month depending on which plan you choose.	Some insurance plans may cover Talkspace costs	– No contracts, so you can cancel at any time – Couples therapy and psychiatry services are also available	Comprehensive mental health care
Amwell	Therapy visits start at $99 per session.	Accepted by some insurance networks	– Appointments are available 24/7 – You can choose your therapist	Low cost counseling
Teen Counseling	Ranges from $60 to $90 per week.	Not accepted	– Messages remain private with some exceptions – A great option for teens who are hesitant about beginning counseling	Teenagers who are interested in starting counseling
Pride Counseling	$60 to $90 per week.	Not accepted	– All counselors have a minimum of 3 years and 1,000 hours of experience providing therapy – You can switch therapists at any point	Members of the LGBTQIA+ community

In the event that you meet with a therapist for the first time and decide that they’re not a good match for you, know that that’s completely fine. It’s totally normal and happens to many people who are looking for the right therapist for them. It can take some time to find someone that you feel completely comfortable with.

At the end of your first session, your therapist may want to schedule another appointment. If you know that you do not want to meet with them again, you can let them know that while you appreciate their time, you don’t think that it’s a good match at this time.

If you feel uncomfortable communicating this to them face-to-face, you can also text, call, or even email them to let them know you’re no longer interested in seeing them.

Regardless of how you choose to tell them, it’s important that you do inform them, instead of not showing up to your next appointment without an explanation. Many therapists have cancellation policies, so make sure you cancel at least 24 hours before your appointment to avoid a fee.

Therapists and psychiatrists aim to treat mental health conditions and improve emotional well-being. But there are key differences between the two professions.

Therapists

Therapists are licensed mental health professionals, including psychologists, social workers, and counselors. They aim to help people manage their emotions, build healthier relationships, and understand themselves better.

Therapists use talk therapy and behavior modification techniques to help people make positive life changes. During therapy, they can assess, diagnose, and treat mental health conditions.

Therapy typically suits people who want to learn more about themselves and make long-lasting changes in their lives. It may also help people with mild mental health conditions.

Most therapists have a master’s degree and may have a doctorate. All licensed therapists have to have at least a master’s degree.

Generally, therapists can’t prescribe medications. But in some states, psychologists with specialist pharmacology training can prescribe certain medications.

Psychiatrists

Psychiatrists are medical doctors who specialize in diagnosing and treating mental health conditions. Because they hold medical degrees, psychiatrists can prescribe medication.

Psychiatrists use a combination of talk therapy and medication to treat mental health conditions. A psychiatrist may be the better option for people who experience more severe symptoms and who need medication to help treat them.

How much does therapy cost?

The cost of therapy can depend on the type of therapy, the therapist’s experience, and whether you’re talking with a therapist in person or through teletherapy.

Therapists may charge between $100 and $200 per session for in-person appointments. But in bigger cities, therapy can cost more. Some therapists may offer sliding scale rates. If you have insurance, you may pay a portion of the fee depending on your coverage.

Teletherapy is generally less costly. The price per session starts at around $50. Some platforms offer unlimited therapy with a weekly or monthly subscription.

What types of therapy are there?

There are many different types of therapy, and the type you choose will depend on your needs and preferences. Some common types include:

Cognitive behavioral therapy (CBT): CBT helps you identify and change negative thinking patterns and behaviors.
Dialectical behavioral therapy (DBT): DBT combines elements of CBT with structured skill-building in mindfulness, distress tolerance, emotion regulation, and interpersonal effectiveness.
Psychodynamic therapy: This type of therapy focuses on your unconscious thoughts and emotions.
Interpersonal therapy: The focus of interpersonal therapy is on your relationships with other people.
Family therapy: This type of therapy helps families resolve conflict and improve communication.
Group therapy: In this type of therapy, you meet with a group of people who share similar experiences.
Art therapy: This type of therapy uses art to express emotions and help process trauma.
Eye movement desensitization and reprocessing (EMDR) therapy: EMDR is an interactive form of psychotherapy used to relieve psychological and trauma-based stress.

What are the benefits of therapy?

Therapy has several benefits, including improving mental health, resolving personal issues, and increasing self-awareness. Therapy can also help people learn new coping skills and manage stress.

Some people see therapy as a way to prevent mental health issues or as a way to address underlying causes of mental health conditions. Others use therapy to work through traumas or difficult life events.

Therapy is an effective treatment for many mental health conditions, including anxiety, depression, PTSD, and eating disorders.

Whether you’re coping with grief, trauma, or relationship issues, or want treatment for a mental health condition, finding a helpful therapist can make a big difference in your journey.

To find a therapist who’s a good fit, start by considering practical matters like licensure, insurance coverage, location, and specialties.

You may find that friends, colleagues, and healthcare professionals are a good source of referrals. You may also find options by using search tools provided by organizations that address your specific concerns.

When you’ve narrowed down your choices, you may find it helpful to think about your goals and questions. This way you can be sure you and your therapist are well matched and aligned on your treatment plan.

Ultimately, finding the right therapist is a personal matter. Human connection is at the heart of effective therapy, and you can build that sense of connection whether you talk with your therapist in person, on the phone, or online.

How to Find a Therapist That's Right for You: 9 Key Tips

Share on Pinterest

We include products we think are useful for our readers. If you buy through links on this page, we may earn a small commission. Here’s our process.

Here are some tried-and-true methods for finding a therapist to help you reach your therapeutic goals.

If you plan to pay for therapy through your insurance plan, your first step might be to look through your plan’s provider network.

It’s also a good idea to find out whether your plan limits the number of sessions you can attend each year and whether using an out-of-network therapist will affect your out-of-pocket costs.

Looking for ways to support your mental health and well-being? Try Healthline’s FindCare tool to connect with mental health professionals nearby or virtually so you can get the care you need.

A referral from a friend, colleague, or doctor you trust is another way to find a therapist who might be a good fit for you.

While a referral is a good place to start, it’s important to recognize that you may have different needs and goals with your therapy than the person giving you the recommendation.

So, a good match for one of you might not be as beneficial to the other.

A number of mental health organizations maintain up-to-date, searchable databases of licensed therapists.

Some of the most commonly used online search tools include:

American Psychological Association
American Association of Marriage and Family Therapists
Association of LGBTQ+ Psychiatrists

Your community may also have resources to help you. If you’re a student, your school might provide access to a counseling center.

If you’re employed, your human resources team might offer a list of therapists available through a workplace wellness or employee assistance program.

If you need counseling related to domestic or sexual abuse, you might be able to find group or individual therapy through a local advocacy organization.

If you’re looking for a therapist to help with a specific mental health condition, you might find local therapists through a national association, network, or helpline.

Here are a few examples of organizations that offer search tools to help you find a specialized therapist near you:

National Eating Disorders Association
Anxiety and Depression Association of America
National Center for PTSD

If your job is a source of stress and anxiety, you might find local therapists through a professional organization.

Resources for People of Color

Access to culture-conscious therapists is important for your well-being. Here are some resources to consider when looking for a therapist:

The Yellow Couch Collective, an online support group for Black women
Therapy for Black Girls
Black Mental Health Alliance
The National Asian American Pacific Islander Mental Health Association, a nonprofit dedicated to the mental health and well-being of the Asian American and Pacific Islander communities.
WeRNative, which provides Native American youth with tools for holistic health and growth, including mental health resources.
Therapy for Latinx

What do you want to accomplish in therapy? Studies have found that when you and your therapist both work together toward the same goals, your outlook will be better.

If you think some type of medication may help with your symptoms, you’ll want to find a psychiatrist or practitioner who can prescribe medications.

Your goals may change as you work with a therapist. It’s OK to talk with your therapist about changing the direction of your treatment plan as your needs evolve.

Talkspace and Betterhelp both offer tools to help you explore the kind of therapy you want. They can also match you with a licensed, accredited therapist you can work with online or via phone.

Some people find a digital therapy platform to be more convenient and more affordable than in-person therapy. Weekly sessions range from $35 to $80 for online therapy.

When you meet your therapist, whether it’s online, on the phone, or in person, it’s not uncommon to completely forget every question you wanted to ask.

To make sure you have the information you need to make a good decision, keep paper and a pen, or a notes app, handy for a few days before your meeting. Jot down questions as they come to you.

The American Psychological Association suggests a few questions for you to consider asking your therapist during your first session:

Are you a licensed psychologist in this state?
How many years have you been in practice?
How much experience do you have working with people who are dealing with [the issue you’d like to resolve]?
What do you consider to be your specialty or area of expertise?
What kinds of treatments have you found effective in resolving [the issue you’d like to resolve]?
What insurance do you accept?
Will I need to pay you directly and then seek reimbursement from my insurance company, or do you bill the insurance company?
Are you part of my insurance network?
Do you accept Medicare or Medicaid?

The Anxiety and Depression Association of America adds questions like these:

If I need medication, can you prescribe it or recommend someone who does?
Do you provide access to telehealth services?
How soon can I expect to start feeling better?
What do we do if our treatment plan isn’t working?

Pay attention to red flags

Some red flags to potentially look out for include:

Does the room make you feel physically uncomfortable? Does it feel private and secure?
Are you experiencing overwhelming feelings of anxiety or panic? Some anxiety or nervousness is understandable, but you’ll want to communicate to your therapist if you’re experiencing symptoms of an anxiety or panic attack.
Do you feel comfortable telling your therapist anything? Are they making you feel judged or uneasy in any way?
Is your therapist completely present with you throughout your session?

But if you feel uncomfortable with your therapist for any other reason, it’s all right to look for someone else.

You don’t need a reason to switch therapists. It’s enough that you don’t feel comfortable.

Here are a few things to notice as you talk with your therapist:

Does the therapist interrupt you, or do they listen carefully to what you’re saying?
Does the therapist respect your time by being prompt to appointments?
Does the therapist brush off or invalidate your concerns?
Do you feel seen, heard, and respected during your session?

Here are some options.

BetterHelp

Read our full review of BetterHelp here.

Get 20% off your first month

Get started with BetterHelp

Talkspace

With over 3,000 licensed therapists, Talkspace offers options for people with a wide range of needs, from depression to PTSD. They offer counseling for individuals, couples, and teens.

Read our full review of Talkspace here.

Get $100 off using code SPACE

Get started with Talkspace

Amwell

Read our full review of Amwell here.

Get started with Amwell

Teen Counseling

Read our full review of Teen Counseling here.

Get started with Teen Counseling

Pride Counseling

This option offers safe and supportive mental health services for LGBTQ+ people. Pride Counseling matches you with a counselor who fits your therapy objectives and needs.

Read our full review of Pride Counseling here.

Get started with Pride Counseling

	Pricing	Insurance coverage	Highlights	What it’s best for
BetterHelp	Cost ranges from $60 to $90 a week depending on your plan and how often you see your therapist. You’ll be billed monthly.	Not accepted	– You can talk to your therapist via text, live chat, phone call, and video – It’s easy to change therapists – There’s financial aid available	Quick and easy access to licensed professionals
Talkspace	$276 to $396 per month depending on which plan you choose.	Some insurance plans may cover Talkspace costs	– No contracts, so you can cancel at any time – Couples therapy and psychiatry services are also available	Comprehensive mental health care
Amwell	Therapy visits start at $99 per session.	Accepted by some insurance networks	– Appointments are available 24/7 – You can choose your therapist	Low cost counseling
Teen Counseling	Ranges from $60 to $90 per week.	Not accepted	– Messages remain private with some exceptions – A great option for teens who are hesitant about beginning counseling	Teenagers who are interested in starting counseling
Pride Counseling	$60 to $90 per week.	Not accepted	– All counselors have a minimum of 3 years and 1,000 hours of experience providing therapy – You can switch therapists at any point	Members of the LGBTQIA+ community

If you feel uncomfortable communicating this to them face-to-face, you can also text, call, or even email them to let them know you’re no longer interested in seeing them.

Therapists and psychiatrists aim to treat mental health conditions and improve emotional well-being. But there are key differences between the two professions.

Therapists

Therapists use talk therapy and behavior modification techniques to help people make positive life changes. During therapy, they can assess, diagnose, and treat mental health conditions.

Therapy typically suits people who want to learn more about themselves and make long-lasting changes in their lives. It may also help people with mild mental health conditions.

Most therapists have a master’s degree and may have a doctorate. All licensed therapists have to have at least a master’s degree.

Generally, therapists can’t prescribe medications. But in some states, psychologists with specialist pharmacology training can prescribe certain medications.

Psychiatrists

Psychiatrists are medical doctors who specialize in diagnosing and treating mental health conditions. Because they hold medical degrees, psychiatrists can prescribe medication.

How much does therapy cost?

The cost of therapy can depend on the type of therapy, the therapist’s experience, and whether you’re talking with a therapist in person or through teletherapy.

Teletherapy is generally less costly. The price per session starts at around $50. Some platforms offer unlimited therapy with a weekly or monthly subscription.

What types of therapy are there?

There are many different types of therapy, and the type you choose will depend on your needs and preferences. Some common types include:

Cognitive behavioral therapy (CBT): CBT helps you identify and change negative thinking patterns and behaviors.
Dialectical behavioral therapy (DBT): DBT combines elements of CBT with structured skill-building in mindfulness, distress tolerance, emotion regulation, and interpersonal effectiveness.
Psychodynamic therapy: This type of therapy focuses on your unconscious thoughts and emotions.
Interpersonal therapy: The focus of interpersonal therapy is on your relationships with other people.
Family therapy: This type of therapy helps families resolve conflict and improve communication.
Group therapy: In this type of therapy, you meet with a group of people who share similar experiences.
Art therapy: This type of therapy uses art to express emotions and help process trauma.
Eye movement desensitization and reprocessing (EMDR) therapy: EMDR is an interactive form of psychotherapy used to relieve psychological and trauma-based stress.

What are the benefits of therapy?

Therapy has several benefits, including improving mental health, resolving personal issues, and increasing self-awareness. Therapy can also help people learn new coping skills and manage stress.

Therapy is an effective treatment for many mental health conditions, including anxiety, depression, PTSD, and eating disorders.

Whether you’re coping with grief, trauma, or relationship issues, or want treatment for a mental health condition, finding a helpful therapist can make a big difference in your journey.

To find a therapist who’s a good fit, start by considering practical matters like licensure, insurance coverage, location, and specialties.

Wall Street Vs. Main Street - Financial Encyclopedia

Seeking professional investment advice can be confusing and frustrating. One of the biggest stumbling blocks is the set of titles used by financial services professionals: "broker", "advisor", "financial planner", "coach" and so on.

Traditionally, brokers sold shares for a commission, and consultants advised for a fee. These days, the lines between these positions are becoming increasingly blurred. There are brokers who provide excellent financial planner services and people who call themselves financial planners who do little more than sell stocks and bonds. But once you get beyond the names, the real choices begin. Are you choosing a Wall Street firm or are you working with an independent consultant? Let's take a look at the differences and how they might affect your decision.

Wall Street Advisors

When most people think of investing, they think of Wall Street. He personifies world-famous investment companies with a worldwide reputation, personifying the mystery of stories about the transformation from rags to wealth and fiat money, won and lost. These large investment firms have big pockets and formidable resources: big advertising budgets, big buildings, and big marketing departments. They have thousands of employees, including research analysts and money managers, many of whom can be seen on CNN and CNBC commenting on the latest stock market developments.

Of course, bigger doesn't always mean better. Large companies are often impersonal. Employees come and go. Corporate regulations guide product sales decisions. The need to generate quarterly profits to meet shareholder needs can translate into pressure to sell products, whether or not customers need those products. Proprietary products create conflicts of interest. Huge numbers of brokers are often translated into lowest common denominator oriented training programs resulting in financial plans for all clients.

The consequence of becoming a large company is that smaller customers can get lost in the mess. Wall Street firms tend to ignore small customers and focus on their larger customers, whose net worth can be several times higher than other customers. The loss of one of these clients can seriously affect a broker's annual income. In addition, many of the investment products that Wall Street offers, such as bonds, treasury bills and private placements, are not even available to small clients.

Because of all these disadvantages for the small investor, if you grow your portfolio you can see where your money will be valued.

High Street Advisors

Although you won't see them on CNN or sponsoring a major golf tournament, a wide variety of investment advisors can be found on the "high street" of cities across the country. Many of these people learned about trading on Wall Street, became disillusioned and left. They rented an office, put up a sign, and built their business with little or no outside help. These independent consultants (they are independent because they are self-employed) have the flexibility to choose the products they offer and the freedom to operate unencumbered by corporate politics or shareholder needs. Independent consultants often offer an impressive level of personal service because they are interested in the business. As a client, you work directly with the owner.

On the other hand, independent consultants usually don't have many big name brands. While they have access to many of the same products and services that Wall Street firms offer, independent consultants access these products from service providers that many investors may not recognize. And there are some services that may simply not be available through independent consultants. Initial public offerings are one notable example. If you want instant access to these Wall Street favorites, you'll probably have trouble finding them on Main Street.

Finally, independent advisors do not use the well-known resources offered by Wall Street firms. They don't have big budgets or marketing departments, and they may not even have a corporate brochure. The staff is likely to be quite small or even limited to one person.

Questions to Ask

When considering whether to choose a Wall Street or Main Street advisor, there are a few key questions that will help you evaluate:

How are you paid? Ask a consultant how they are paid. A consultant's remuneration takes the form of a commission, a commission (hourly or depending on assets under management), or some combination of commissions and commissions. You only pay commissions for what you buy. Of course, this means that your EA is only paid if it sells something, which begs the question, is it in your best interest to buy what your EA sells.

Paid consultants get the same salary no matter what you buy. Many investors feel that this aligns the adviser's interests with those of the investors. On the other hand, the commission you pay may be higher than the value of the commission for a similar amount of purchases.

What services do you offer? Does your consultant specialize in retirement planning? Do they offer comprehensive financial planning? Is the practice a "family office" offering financial services to families, such as financial education, family budgeting, or estate planning? Compare the list of services the advisor offers with the list of services you need.

What products do you offer? The Financial Services Arena offers a variety of products from mutual funds and individual securities (such as stocks and bonds) to managed money, limited partnerships and insurance. Find out what the adviser you are considering offers and compare these offers to your personal needs.

Your practice specializes in a specific area clientele? Counselors structure their practices in different ways. Some work with every client that walks in the door, while others only work with dentists, doctors, artists or pilots. Some consulting practices specialize in meeting the needs of small business owners or employees of a particular company. Talk to your potential consultant about his or her area of expertise.

Essence

Whether you lean towards a Wall Street or Main Street advisor, your interests will be best served if you ask a lot of questions and listen and observe a lot before making a decision. If you sit down for a consultation, pay attention to what areas your consultation covers and whether your interests are at the center of the discussion. Is your consultant asking the right questions or do they start by trying to sell you a product? Are the tax consequences of investing included in the discussion? Does the consultant explain their process? Remember that in the end, the decision of who to trust with your financial well-being should be based on what the consultant can do for you, and not on the name or location of the firm on the consultant's business card.

Advisor's Choice: Wall Street vs.

Main Street

Seeking professional investment advice can be confusing and frustrating. One of the biggest stumbling blocks is the array of titles used by financial service professionals - e.g. "broker", "advisor", "financial planner", "coach", etc. Traditionally, brokers sold stocks for a commission and advisors advised for fee. These days, the lines between these positions are becoming increasingly blurred. There are brokers who provide excellent financial planning services, and people call themselves financial planners who do little more than sell stocks and bonds. But once you get beyond the titles, the real choices begin. Are you choosing an advisor to a Wall Street firm or are you working with an independent consultant? Let's look at the differences and how they might affect your decision.

Wall Street
When most people think of investing, they think of Wall Street. He epitomizes globally recognized branded investment firms that are a hoax of tales and paper riches won and lost. These large investment firms have deep pockets and impressive resources: large advertising budgets, large buildings, and large marketing departments. They have thousands of employees, including analysts and money managers, many of whom can be seen on CNN and CNBC commenting on the latest stock market developments.

Of course, big doesn't always mean better. Large companies are often impersonal. Employees come and go. Corporate mandates make product sales decisions. The need to generate quarterly profits to satisfy shareholders can lead to pressure to sell products, whether or not customers need those products. Proprietary products encourage conflicts of interest, and the sheer number of brokers are often translated into training programs geared towards the lowest common denominator, resulting in cookie-cutter financial plans for all clients.

A consequence of becoming a large company is that smaller customers can get lost in the shuffling. Wall Street firms tend to ignore smaller clients and focus on their larger clients, who may have a net worth several times that of other clients. The loss of one of these clients can seriously affect a broker's annual income. In addition, many of the investment products that Wall Street offers, such as bonds, treasuries, and private placements, are not even made available to small clients.

Because of all these disadvantages for the small investor, if you grow a portfolio, you can see where your money is worth.

Main Street
Until you see them on CNN or sponsor a major golf tournament, you can find a wide variety of investment advisors across the country on Main Street in cities and towns. Many of these people have studied Wall Street trading got disappointed and left. They rented an office, put up a sign, and built their business with little or no help. These independent consultants (they are independent because they are self-employed) have the flexibility to choose the products they offer and the freedom to act without being constrained by corporate policy or shareholder needs. Independent consultants often offer an impressive level of personal service because they have a stake in the business. As a client, you work directly with the owner.

On the other hand, independent advisors usually have little to do with brand names. While they have access to many of the same products and services that Wall Street firms offer, independent consultants access these products from service providers that many investors are unlikely to recognize. And there are some services that may simply not be available through independent consultants. Initial public offerings are one of the most high-profile examples. If you want permanent access to a supply of these Wall Street favorites, you're unlikely to find it on Main Street.

Finally, independent consultants are not supported by the established resources offered by Wall Street firms. They don't have big budgets or marketing departments, and they may not even have a corporate brochure. The staff will likely be quite small or even limited to one person. Investors who grow a moderate retirement portfolio may feel more comfortable and receive more personalized service from a smaller firm.

Wall Street or Main Street : Questions to Ask
When you plan to choose whether to choose a Wall Street or Main Street advisor, there are a few key questions that will help with the assessment:

How do you get paid?
Ask the adviser how he is paid. Advisor compensation is in the form of fees (both hourly and asset under management) or a combination of fees and commissions. With commissions, you only pay for what you buy. Of course, this means that your EA only gets paid if he or she sells something to you, which raises the question of whether it's in your best interest to buy what your EA is selling.

Remunerated consultants receive the same salary regardless of what you buy. Many investors feel that this aligns the adviser's interests with those of the investors. On the other hand, the fee you pay may be higher than the cost of a commission for a similar volume of purchases.

What services do you offer?
Does your advisor help with retirement planning? Does it offer comprehensive financial planning? Is the practice a "family office" offering financial services that serve families, such as financial education, household budgeting, or estate planning? Compare the list of services the consultant offers to the list of services you need.

What products do you offer? The
Financial Services Arena offers a variety of products from mutual funds and individual securities (such as stocks and bonds) to managed money, limited partnerships, and insurance. Find out what the advisor you're considering offers and compare these offerings to your personal needs.

Does your practice specialize in a particular client?
Counselors structure their practices in a variety of ways. Some work with every client that walks through the door, while others only work with dentists, doctors, or airmen.

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