Sherpa – FAQ & Education
Clear, honest explanations about financial advisors, how they work, and why credentials matter.
✅ Why Work With a Financial Advisor?
Money decisions are complicated. A qualified advisor helps you:
- Avoid costly mistakes
- Plan for retirement, investing, taxes, and major life events
- Make decisions based on facts, not emotion
- Build a long-term financial strategy
- Understand complex topics in simple terms
A good advisor acts as your guide—someone who knows the terrain, keeps you accountable, and helps you navigate your financial future confidently.
💼 How Financial Advisors Get Paid (Simple Breakdown)
Advisors on Sherpa use a variety of fee structures. Understanding how each works helps you choose the right advisor for your needs and budget.
1. Hourly Rate
SHERPA PROCESSEDPay for the advisor's time by the hour. Great for one-time consultations, specific questions, or project-based work.
Typical range: $150 - $400/hour depending on experience and specialization
Best for: Specific questions, second opinions, one-time financial reviews, tax planning sessions
Sherpa securely processes hourly payments and tracks time for full transparency.
2. Flat Fee
SHERPA PROCESSEDA fixed price for a defined scope of work. You know exactly what you'll pay upfront.
Typical range: $500 - $5,000+ depending on complexity
Best for: Comprehensive financial plans, retirement roadmaps, debt payoff strategies, estate planning
Sherpa processes flat fee payments securely with clear deliverables defined upfront.
3. Retainer
SHERPA PROCESSEDOngoing monthly or quarterly fee for continuous access and advice. Like having an advisor on speed dial.
Typical range: $100 - $500/month
Best for: Ongoing financial coaching, regular check-ins, life transitions, building long-term relationships
Sherpa handles recurring retainer billing automatically with easy subscription management.
4. Assets Under Management (AUM)
DIRECT BILLINGA percentage of your invested assets (typically 0.5% - 1.5% annually). The advisor manages your portfolio directly.
Typical range: 0.5% - 1.5% of assets managed per year
Best for: Hands-off investors who want professional portfolio management, high-net-worth individuals
Why Sherpa doesn't process AUM fees:
AUM fees are automatically deducted from your investment accounts by the advisor's custodian (like Schwab, Fidelity, or TD Ameritrade). These fees are calculated based on your account balance and deducted quarterly. Since the advisor needs direct access to manage your investments, this must be done through their registered investment platform with proper SEC/FINRA oversight—not through a marketplace like Sherpa.
5. Commission
DIRECT BILLINGThe advisor earns a percentage when you purchase financial products like insurance policies, annuities, or certain investments.
Typical range: Varies by product (3% - 7% for insurance, 1% - 5% for investments)
Best for: Insurance planning, annuities, specific investment products where you want guidance on selection
Why Sherpa doesn't process commission fees:
Commissions are paid by the product companies (insurance carriers, mutual fund companies, etc.) directly to the advisor when you purchase a product. These payments flow through regulated broker-dealer networks and require specific licensing. Sherpa cannot intermediate these payments because they're built into the product structure and regulated by insurance commissioners and FINRA—the advisor receives compensation from the product issuer, not from you directly.
Quick Comparison
| Fee Type | How You Pay | Sherpa Support | Best For |
|---|---|---|---|
| Hourly | Per session | Processed on Sherpa | One-time questions |
| Flat Fee | One-time project | Processed on Sherpa | Financial plans |
| Retainer | Monthly/quarterly | Processed on Sherpa | Ongoing coaching |
| AUM | % of assets/year | Direct with advisor | Portfolio management |
| Commission | Built into products | Direct with advisor | Insurance & products |
🎓 Common Advisor Certifications (What They Actually Mean)
CFP® — Certified Financial Planner
The gold standard for personal financial planning.
Covers: retirement, taxes, insurance, estate, investments.
Why it matters: Strict ethics, fiduciary duty.
CFA® — Chartered Financial Analyst
Deep expertise in investments, research, and portfolio management.
Why it matters: Extremely rigorous; strong for investment-heavy clients.
CPA — Certified Public Accountant
Tax and accounting specialist.
Why it matters: Ideal for complex tax planning.
ChFC® — Chartered Financial Consultant
Similar to CFP® with more insurance content.
Why it matters: Great for insurance-heavy planning.
Series 7
Allows an advisor to sell securities (stocks, bonds, funds).
Why it matters: Required for brokers.
Series 65
Allows advisors to give investment advice for a fee.
Why it matters: Required for fee-only investment advisors.
Series 66
Combines Series 63 + 65.
Why it matters: Covers state law + investment advice licensing.
DACFP — Digital Assets Council Certification
Credible training in crypto/digital assets.
Why it matters: Strong indicator of crypto literacy and risk understanding.
🔍 How to Choose the Right Advisor
Pick an advisor based on:
- Their specialty: retirement, crypto, tax, budgeting, investing
- Their credentials: tells you what they're trained in
- Your goals: short-term vs long-term
- Their planning style: hands-on, educational, passive, or tactical
- Comfort + communication: you should feel understood
Sherpa helps by verifying credentials and listing advisor strengths clearly.
🔒 How Sherpa Protects You
Sherpa is designed to be transparent, safe, and private:
- All advisors must upload verifiable credentials
- Sherpa masks advisors' last names for privacy
- Messaging stays inside the platform
- Users can rate and review advisors after real conversations
- No advisors without credentials are allowed
- No external contact swapping allowed until the advisor chooses to share
Sherpa focuses on trust first.
⭐ User Reviews
After you speak with an advisor through Sherpa, you'll automatically receive a link to rate your experience. Reviews help keep the marketplace honest.
❓ Frequently Asked Questions
Do advisors pay to be on Sherpa?
Yes. Advisors pay an annual subscription and a small fee for each user connection.
Do you list unlicensed or uncertified advisors?
No. Every advisor must submit verifiable credentials.
Can users see advisor contact info?
Not initially. Names are masked (e.g., Sarah M.) and communication stays in Sherpa.
Does Sherpa give financial advice?
No. Sherpa connects users with verified advisors; Sherpa itself does not provide advice.
Is messaging secure?
Yes. All communication takes place inside the platform and is not publicly visible.
What if I'm new to finances?
That's exactly what Sherpa is for. You can filter advisors by specialization and comfort level.
🚀 Sherpa's Goal
Make finding trustworthy, qualified financial guidance as simple and safe as possible.
Your journey deserves a guide.
Sherpa helps you find them.