Financial Planner vs. Financial Advisor vs. Fiduciary: What Couples With Large 401(k)s and IRAs Need to Know

You can hire someone with a polished title and still not know who they answer to when a recommendation pays them more. The title will not tell you. Questions will.

In this guide, you'll see:

• What each of the three terms means and what it leaves out
• Why the same person can owe you different duties in different roles
• Why large pre-tax accounts change what you should expect from a plan
• Twelve questions to ask before you hire anyone, in four groups

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What the Three Terms Mean

The three words overlap. One person can be all three at once. That is why comparing titles tells you little.

Sources: CFP Board, Code of Ethics and Standards of Conduct; SEC, Commission Interpretation Regarding Standard of Conduct for Investment Advisers. Reviewed November 13, 2026.

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Why the Title Does Not Settle the Question

Two people can both say "I'm your advisor" and owe you different duties.

An investment adviser registered with the SEC or a state owes you a fiduciary duty under federal law. A broker-dealer follows a separate SEC rule, Regulation Best Interest, which applies when the broker makes a recommendation to you. The SEC describes these as related but not identical standards.

Some professionals hold both registrations. In that case, the duty can depend on the capacity in which the person is acting on a given recommendation. That is why you should ask the question directly instead of relying on a title on a business card.

If you want to read the SEC's own explanation, see its guidance on Regulation Best Interest and the Form CRS relationship summary.

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Why Large Pre-Tax Accounts Raise the Stakes

When most of your savings sit in 401(k)s and IRAs, every dollar you withdraw is generally taxable income. That changes what you need from the person you hire.

Several decisions then affect each other:

• Withdrawal order. Which account you draw from first can change your taxable income in each year.
• Roth conversions. Moving money from a pre-tax account to a Roth account can add income now in exchange for a possible tax benefit later. It does not suit every situation.
• Required minimum distributions. The law requires withdrawals from pre-tax accounts starting at a set age. They can add income you did not plan to take.
• Social Security timing. When each spouse claims can affect lifetime benefits and how much of those benefits are taxed.
• Medicare premiums. Medicare uses your income from two years earlier to decide whether you pay an added amount, known as IRMAA. The IRMAA guide explains the 2026 brackets.
• The surviving spouse. After one spouse dies, the survivor generally files as a single taxpayer, with narrower brackets.

Someone who plans your investments but not these decisions leaves you to coordinate them. Someone who covers them still cannot promise a result, because tax law, markets and your own choices change.

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Questions to Ask Before You Hire

Ask each question of every advisor you consider. Ask for the answers in writing. A clear answer is specific, uses dollars and names the documents it comes from.

How the person is paid

1. How do you get paid, in dollars? Advisors may charge a percentage of assets, a flat fee, an hourly rate, a commission, or a mix. Each has trade-offs. A percentage fee rises as your balance grows. A flat fee may not include ongoing management. A commission can create an incentive to recommend a product.
2. Do you or your firm earn anything else if I follow a recommendation? Examples include product commissions, referral payments and revenue from the firm that holds your accounts.
3. What will I pay in total each year, including fund costs? Ask for one number for the advisor and a separate number for the investments.

Which duty applies

4. Are you acting as a fiduciary on every recommendation you make to my spouse and me? If the answer is "usually" or "it depends," ask what it depends on, and ask to see it in writing.
5. Can I read your Form CRS and Form ADV Part 2A? They describe services, fees, conflicts of interest and disciplinary history. A willing advisor hands them over before you sign anything.

What the plan covers

6. Does the plan cover taxes across many years, or only this year's return? Look for projected income and tax for each year of retirement, not a one-time estimate.
7. Will the plan show the order I withdraw from my 401(k)s, IRAs, Roth accounts and taxable accounts? It should explain why that order was chosen and what it trades off.
8. How will you coordinate Social Security for both spouses? Ask how each spouse's claiming age is chosen and how the survivor's benefit is treated.
9. Does the plan account for Medicare premiums and required minimum distributions? Both can change with income, so they belong in the same analysis as your withdrawals.
10. What happens to the plan if one spouse dies? The survivor's taxes, income and Social Security can all change.

Whether it is written down

11. Will the plan be delivered in writing, and how often is it updated? A conversation is not a plan. Ask what you receive and when it is reviewed.
12. Who does the work, and how often will you meet with me and my spouse? Ask whether you will deal with the person you are interviewing or a team, and what service you can expect each year.

For more on common hiring mistakes, see Hiring A Financial Advisor: The 6 Biggest Mistakes to Avoid and How To Pick The Right Advisor.

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How to Check the Answers

Do not rely on what anyone says about themselves, including the firm that published this guide. Check public records:

• Investment Adviser Public Disclosure shows a registered adviser's Form ADV, services, fees and any disciplinary history.
• FINRA BrokerCheck shows a broker's registrations, employment history and disclosures.
• CFP Board lets you confirm whether someone holds the CFP® certification.

A public record shows registration and disclosed history. It does not measure how well a person will serve you, so use it alongside your own questions.

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Frequently Asked Questions

Is a fiduciary financial advisor worth it?

A fiduciary duty means the advisor must act in your best interest and address conflicts of interest. That may matter a great deal when you are moving large pre-tax balances into a withdrawal plan. It does not guarantee results or a lower price, and a fiduciary can offer a narrow service. Judge the advisor on duty, cost and what the plan covers together.

What is a typical fiduciary fee?

There is no single typical fee, because "fiduciary" describes a duty, not a price. Fiduciary advisors charge in different ways, including a percentage of assets, a flat fee or an hourly rate. Ask for the written fee schedule and the total annual cost in dollars. You can see how MOKAN Wealth publishes its own fees on the fees page.

Is $500,000 enough to work with a financial advisor?

It depends on the advisor. Firms set their own minimums and service models, and some offer flat-fee or hourly planning to people with smaller balances. Ask what the advisor requires and what you would receive at your balance. Complexity matters as much as size. A couple with most of their savings in pre-tax accounts has tax and withdrawal decisions that a balance figure does not capture.

Can one person be a planner, an advisor and a fiduciary?

Yes. A person can build financial plans, give investment advice, and owe you a fiduciary duty as a registered investment adviser. The same person may also hold other registrations that carry different duties. That is why you ask which duty applies to each recommendation.

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What to Do Next

Pick two or three advisors. Ask each the twelve questions above. Put the answers in a single comparison and look at how each person is paid and what the plan covers.

If MOKAN Wealth is one of them, the Retirement Fit Meeting is a conversation about your situation and whether the firm is a fit. Bring your questions and compare the answers with anyone else you are considering. You can read the published fees on the fees page, then start here to request a meeting.