Karen Doyle

Sat, Jun 14, 2025, 7:02 AM4 min read

Suze Orman is a self-made personal finance expert, bestselling author and podcast host who became a stockbroker after she was taken advantage of by one. Orman gives advice on a lot of different financial situations, but one she is passionate about is knowing whether you need a financial advisor — and how to find a good one.

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Here’s what Suze Orman says about the type of financial advisor you should have, and what they should do with your money.

On a recent episode of “The Suze Orman Show,” a viewer emailed to ask if an annual fee of 0.09% as too much for a financial advisor to charge. Orman noted that this is a common way for advisors to get paid, and it’s also motivating for the advisor.

“There are many people out there known as registered investment advisors that charge a percentage of money under management,” said Orman. “Let’s just say you gave a registered investment advisor $100,000. If they are being paid 0.09% on the $100,000, fine. If they take that $100,000 to $300,000, now they’re making more money. They’re being paid 0.09% on $300,000.

“But if they take that $100,000 to $50,000, now they’re only being paid 0.09% on $50,000. So, you make money, they make more money. You lose money, they make less money. I like how that works.”

Note that a fee of 0.09%, or 9 basis points, is very low, and the person asking the question probably meant 0.9%, or 90 basis points. More on this below.

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Orman goes on to specify that a registered investment advisor who is charging a percentage of assets under management should be investing your money in individual stocks, not mutual funds or ETFs.

“(They) should only be investing in individual stocks for you, not putting you into mutual funds where there are heavy expense ratios because then you’re paying double, or they’re charging you commissions or loads on mutual funds”, she said.

Once you’ve decided you want to work with a financial advisor, the next step is to find the right one.

A good way to start is by asking trusted friends and family members. A personal recommendation from someone the advisor works with is better than all the advertising in the world. Collect a few names from people you know, and add in a Google search if you have to.