Should You Hire a Local or Remote Financial Advisor?

Choosing to work with a financial advisor is a big step that requires a great deal of trust—in both the person and their methods. Due to a combination of in-person and remote modes, there are more options to work with a professional than ever before.

Meeting with a local advisor face-to-face is the traditional route. It allows you to get to know your expert more closely, see how they work, and participate in a truly hands-on experience. On the other hand, some may prefer an online advisor, which can offer more flexibility in location, cost, and access to specialized expertise beyond your immediate area.

But if you’re on the fence between a local or remote advisor, how can you decide which is right for you? In this article, we’ll highlight the differences between the two types of relationships, the pros and cons of each, and how to select the best option for your needs.

Understanding the Two Advisor Types

Working with a financial advisor is a relationship that’s easy to think about as traditional, like meeting with an attorney or a doctor. You swing by an office, shake hands with your dedicated professional, and engage in a meeting where you review your finances. While some discussions may take place over the phone, most critical meetings and planning occur in person.

But due to the internet, this is no longer the only way to receive financial guidance. It’s also possible to work with a financial advisor entirely online, whether you meet over a video call, email, or phone, rather than in an office.

Because it takes place virtually, remote advice allows you to access a broad pool of professionals with varying expertise, experience, and credentials, surpassing your community. It can also lower the barrier of entry for services, such as robo-advisors, for those with fewer assets to manage.

Remote financial advice is becoming increasingly more common and acceptable for clients. According to a study published by ComparisonAdviser in 2024, more than 50% of people across ages 20 to 60+ were open to an online arrangement.

Weighing the Benefits and Drawbacks of Local Advisors

The traditional method of working with a local advisor can have multiple benefits. However, it also has limitations, especially when compared to purely online options. Ultimately, it will depend on your needs as a client and what you’re looking for out of a financial advisor-client relationship.

Here are some pros and cons of working with a local advisor:

Benefits

A prominent and potentially overlooked advantage, according to Jason Steeno, president of CoreCap Investments and CoreCap Advisors, is the access they provide to a professional network in your community. He explains that “local advisors have relationships with CPAs, attorneys, tax preparers and consultants” and that they “can refer you to these professionals who they’ve already vetted in terms of quality of service and expertise in their field.”

Another benefit is the ability for advisors to naturally gain trust through in-person interactions. Face-to-face, it can be easier for you as a client to get a read on how a professional conducts their business and whether they’re a person you can trust. You can also pay attention to things like your rapport, how they treat any co-workers they have, and how organized their business is.

Local advisors also build relationships outside of business meetings with clients, which can give them a “leg up in terms of additional opportunities to form and solidify relationships with clients,” says Steeno. He describes, for instance, “Some advisors host local client events either outside their office or at a venue where they can connect with their clients on a more personal level while showing appreciation for their business,” noting that it would be more “difficult and cost prohibitive” for a virtual advisor to do something similar.

Drawbacks

While convenient and tech-friendly for those who aren’t comfortable with a virtual setting, there’s always a chance you might not have the professionals around you with the right experience and credentials. You’re limited to the options around you, whether they’re high-quality or not. And if you can’t find the help you need, it could also mean taking a long drive to find it if you live in an isolated area.

In-person advisors can also come at a higher price due to the inflated expenses of operating a brick-and-mortar office. “Local advisors definitely have a higher overhead cost to run their business and that typically [trickles] down to the service costs,” says Alajahwon Ridgeway, EA, MBA, CPWA^®, CDFA^®, owner at A.B. Ridgeway Wealth Management. “Someone has to pay for that big beautiful building with chandeliers, the luxurious couches, the art on the wall, and the snacks and beverages in the lobby. And that somebody is typically the client.”

There’s also a lot of potential for inconveniences while working with an advisor in your town. For instance, you’ll need to have reliable transportation to your meetings and be comfortable meeting in person. Ridgeway notes that uncertain events, such as last-minute scheduling changes and wait times, can also be a common challenge.

“There is nothing worse than getting dressed, driving 30 minutes, waiting in the lobby, only to be told that the advisor is running late, or won’t be able to meet,” Ridgeway says. “Also, in a closed space, you don’t know how many people were there and if they were sick or not. You are pretty much rolling the dice every time you go into a public office space.”

Weighing Benefits and Drawbacks of Remote Advisors

Working with a financial advisor in a virtual format has some crucial advantages, including lower costs, flexibility, and broader access to specialized advisors and services. However, it also has limitations with building trust, a learning curve for some clients, and limited face time. Below are the pros and cons to consider:

Benefits

The direct opposite of local financial advice, the primary benefit of remote arrangements is that there’s no need to get in the car and meet with an expert. Rather, you can meet with one on a video call, even if they’re across the country.

“Given the proliferation of video calling apps like Zoom and FaceTime, the prospect of using a virtual advisor has become far more personal than in the past when we relied solely on voice calls to communicate virtually,” says Steeno, highlighting that this is beneficial, “especially for those clients who don’t need that in-person relationship with their advisor.”

Because you aren’t limited to options in your surrounding area, you get access to a wider array of professionals with diverse backgrounds, experience, and designations. This means if there’s a specific service you need, such as investment management or retirement income planning, you can expand your search and have plenty of options to compare. This can allow you a better chance at finding the highest level of advice available.

Another pro is that prices can be lower, since there isn’t that overhead cost that in-person advisors may have. “Virtual advisors can pass along lower overhead costs to clients in the form of lower management fees,” says Steeno. As a client, you may also see savings on transportation to and from the office, particularly if you meet frequently or need to travel a far distance.

Finally, as technology continues to evolve, online financial advisory formats also provide more accessibility to those who are just starting or prefer more hands-off guidance. Unlike in-person advisors, which may come with higher fees and minimums for investment management, online tools such as robo-advisors can allow beginners to invest and manage their finances without steep prerequisites.

Drawbacks

While it’s becoming more streamlined, online financial advice can include a learning curve. This is particularly the case for older individuals who may have lived their entire lives without using the internet. For some, adapting to virtual tools and dashboards, even if it creates more access and flexibility, may not be simple.

“Web cams, Zoom meeting links, digital signatures, and secure portal uploads can be overwhelming for some investors,” says Ridgeway.

Remote advice can also feel impersonal, especially if meetings with advisors are short. Even if a professional has all the right credentials and is a fiduciary, the trust-building element over the internet can be a hard pill to swallow for some due to the lack of traditional, in-person things like shaking hands or small talk. It may also be a challenge to get all your questions answered or feel like you have all the information you need if you have only 30 minutes to chat with your advisor on a call, for instance.

Steeno says that online advisors can still be creative and thoughtful to win skeptical clients over, however. “Virtual advisors can take cues from their client conversations as they learn about client interests,” he says. “For instance, sending a client a small gift that relates to their love of wine could be a way to further connect with them and show that you’re listening and present while meeting with them (subject to your own firm and industry regulations on gift giving).”

Like in-person meetings, online meetings are also subject to uncertain events and issues. It’s entirely possible for either you or your advisor to experience technical difficulties, time-zone incompatibility, and more, which can make it harder to communicate effectively.

Making Your Decision and Finding an Advisor

Choosing between a local and remote financial advisor comes down to what you believe is most comfortable and convenient, and what you value in a financial advisor. Some clients might prefer flexibility and access to specialties, whereas others may desire familiarity and convenience.

Here are the main tradeoffs to weigh:

• Trust and personal connection. Local advisors offer a traditional, face-to-face rapport, while online ones rely on virtual tools and calls.
• Choice and specialization. Online arrangements can grant you access to a broad spectrum of professionals; in-person limits you to your immediate area.
• Cost. Local advisors may incur higher fees due to operating costs. Meanwhile, online experts and tools, such as robo-advisors, could have lower fees.
• Convenience. Online meetings save time and are flexible for both clients and advisors. Face-to-face advisors require a commute but might be more familiar and personable.

Whichever option you go with, it’s important to prioritize working with a fiduciary financial advisor. This will be someone bound by the law to put your interests first and will often hold reputable credentials such as Certified Financial Planner (CFP), Chartered Financial Consultant (ChFC), and Chartered Financial Analyst (CFA).

To find a remote advisor or one in your ZIP code, you can use our free matching tool. After a brief list of questions about you and your situation, it will connect you with a vetted fiduciary advisor who fits your needs and preferred mode of communication.