How to Find an LGBTQ+-Friendly Financial Planner

If you’re part of the LGBTQ+ community, finding a certified financial advisor who is LGBTQ+-friendly can be both important and challenging.

As a whole, financial advisors aren’t a diverse group of people. The average age of a financial advisor is 55, and 20% of financial advisors are 65 or older, according to a 2019 study by J.D. Power. Of the 96,479 certified financial planner (CFP) professionals, fewer than 4.8% are Black or Latinx. And the Certified Financial Planner Board of Standards only announced in 2021 the option to choose a nonbinary gender for current planners and future applicants. (As of June 2023, fewer than 0.1% of CFPs are nonbinary.)

How can you get the best financial advice from an industry that doesn’t seem to have a very diverse pool of people from which to choose? Money is personal. What works for another person may not work for you. But here’s the thing: financial planning should be available to everyone. You deserve the absolute best financial advice, and finding a financial advisor who caters to your specific financial needs as an LGBTQ+ person can make all the difference to your future financial stability.

Key Takeaways

  • A 2022 U.S. Bank study shows that discrimination against LGBTQ+ people is ongoing, and it affects their financial well-being.
  • Having an LGTBQ+-friendly financial planner can help uncover potential financial hurdles that many members of the LGBTQ+ community face.
  • Searching online for LGBTQ+-friendly financial advisors is one way to find an advisor, but when you meet with a potential advisor, you should be prepared to ask about their experience working with LGBTQ+ clients.

Why Sexual Orientation and Gender Identity Matter in Financial Planning

The pool of financial planners skews toward older, more conservative individuals, which can make it tough to know whether your advisor is sensitive to the planning and investment needs of LGBTQ+ people. The financial services industry has fallen short on how it serves these communities and their families. As a nation, we’ve made great strides toward equality in legal and civil rights. Still, a 2022 U.S. Bank study showed that LGBTQ+ people “earn 90 cents for every dollar earned by an American worker.” For transgender women, that gap increases to 60 cents. In addition, 46% of LGBTQ+ people have faced workplace discrimination, and 34.2% have left a job due to it.

60 Cents

The amount that transgender women earn for every dollar earned by an American worker.

Particular LGBTQ+ concerns

If you’re part of the LGBTQ+ community, you probably face a number of extra difficulties in planning your financial future. David Rae, president and founder of DMR Wealth Management, is a gay financial advisor located in Los Angeles who is a CFP and an accredited investment fiduciary (AIF). Rae says, “I know I have many conversations with my gay clients that they would never have had with a straight advisor. Some of these topics have financial ramifications, like travel or how they entertain themselves. Others are more health- and aging-related. There are quite a few health issues that are more prevalent within the L, G, and T communities.”

Other issues could include protecting your domestic partner if you choose not to get married and navigating workplace discrimination and how it affects reaching your financial goals, including retirement. Having a financial planner who is LGBTQ+ or least friendly to those who are can be an important part of forging a sustainable and successful financial future. As Rae puts it, “Finding an LGBTQ+ financial planner is about comfort.”

Transgender issues

According to the Trans Legislation Tracker, which documents legislation impacting the lives of trans people in the U.S., 34 states introduced 147 anti-transgender laws in 2021; 174 were introduced in 2022. The effects have been profound, especially on LGBTQ+ youth. According to research by the Trevor Project, as of 2021, 85% of transgender or nonbinary youth said that these laws have impacted their mental health negatively.

Rae says that such statistics make finding an LGBTQ+-friendly financial advisor more crucial for anyone dealing with transgender issues. “The attacks on the transgender community pose a wider set of financial challenges. The ability to get gender-affirming care will definitely affect decisions on where someone chooses to live. Likewise, where you live can affect what insurance will or will not cover.” It makes having an advisor who knows all the ropes even more important.

While 16% of non-LGBTQ+ people lived in poverty in 2022, that percentage jumps to 22% of LGBTQ+ people.

The myth of gay wealth

Many people assume that LGBTQ+ people are wealthier than their non-LGBTQ+ counterparts, in part because many don’t have to shoulder the costs of raising children. It’s not so. According to U.S. Bank, “Over the past two decades, the LGBTQ+ community has made significant strides in advancing equality. Yet, advances in financial equity have been slow to materialize.” One striking statistic is that “22% of LGBTQ+ adults in the U.S. live in poverty, compared to 16% of non-LGBTQ+ adults.” The report concludes, “While LGBTQ+ individuals demonstrate financial independence, stewardship and a desire to make smart financial decisions, the [discriminatory] barriers they face can result in a lack of self-confidence, which makes achieving their goals even more challenging. For LGBTQ+ individuals who face additional discrimination due to gender, race or age, the barriers are compounded.”

Rae assesses the situation this way. “On paper DINKS (double income, no kids) will have more disposable income, [but] this doesn’t always translate into more wealth.” For one thing, he notes that the LGBTQ+ community often congregates in cities where “your money just doesn't go as far” as it does in other parts of the country. In particular, he notes the pitfalls of retirement when you are childless. It “leads to one of the biggest challenges facing LGBTQ+ retirees: lack of support as we age. LGBTQ+ people without children can expect to pay more for care as we age. The amount of elder care that is provided for free by a family member is insane. Without children, we will need to make alternate plans to get care from our chosen family or the people we pay.”

LGBTQ+ people who do decide to have children generally face steep financial costs for things such as in vitro fertilization, surrogacy, and adoption procedures. DINKS or not, there is an increased need for money, which can be best amassed through the kind of smart financial planning you can get from an LGBTQ+ or LGBTQ+-friendly advisor.

How to Find an LGBTQ+-Friendly Financial Planner

Is finding an LGBTQ+-friendly financial advisor enough? Or should you hold out for one who actually is LGBTQ+? According to Rae, “If you have an amazing financial advisor who is straight but gay-friendly, that is fabulous. The point is to find someone to help you reach your financial goals as quickly and easily as possible.” And yet, he also advises, “If I was starting a search [for a] financial advisor from scratch, I would ask my friends, or at least start the Google search with ‘gay financial advisor’ or ‘lesbian financial advisor.’ Bottom line: I do like to support LGBTQ+ business owners and businesses.”

The search process

In your search for an advisor, Rae says to “check out the XY Planning network, [where] you can search for advisors by gender or identity focus.” Another source is the Gay Lesbian Directory, which offers a list of more than 5,000 LGBTQ+-supportive businesses. You can find a selection of LGBTQ+ financial planners there.

There are also non-LGBTQ+ financial advisor search engines you can use, including:

  • Let’s Make a Plan: The CFP Board has a tool that lets you easily find a CFP professional. Enter your location and the services you want or search for a specific planner by name.
  • Boomerater: This is an online network that allows you to search for an advisor in your area. You can also search by last name if you are looking for a specific advisor.
  • NAPFA: The National Association of Personal Financial Advisors (NAPFA) has an online search feature to find a financial planner near you.

You should do your homework and make sure that the planner is legitimate and has a good service record before you hire them. Using a financial advisor search engine can help you find reviews about the advisor and verify their credentials.

The interview process

If are searching for an LGBTQ+-friendly advisor, you should start the interview process by asking questions that will give you a sense of their personal style, professional experience, and content mastery. These should include:

  • Have you worked with LGBTQ+ clients before? How many?
  • Have you worked with same-sex couples before?
  • Can you walk me through specific financial challenges that LGBTQ+ individuals face?
  • Can you tell me about laws in this state that can impact productive financial planning for LGBTQ+ people?

Ideally, a financial advisor will have experience working with LGBTQ+ clients and can provide you with examples of challenges and strategies that can benefit your overall finances. Notice the advisor’s body language, facial expressions, and tone of voice when answering these questions. If they acknowledge the importance of these questions, they may be a good fit in your selection of a financial advisor.

Consider virtual advising

If you find an advisor or a firm you think will be a good fit, but they are too far away geographically, you should ask if they meet with clients virtually. This is especially relevant if you live in a part of the country that is more homophobic than average. Rae warns, “The more homophobic the area you are living in, the more important it is to seek out a gay-friendly or LGBTQ+ financial advisor. If you live in a state that doesn’t want people to even say ‘gay,’ well, your odds likely go up of someone not being willing to help you once they find out you are gay.” He also points out that homophobia can rear its ugly head anywhere, so be vigilant. “You are less likely to have an issue with homophobia in Manhattan, West Hollywood, or the Castro, but it can happen.”

Important Considerations When Choosing a Financial Advisor

In addition to finding an advisor who is equipped to meet your LGBTQ+ financial needs, there are other considerations to take into account. One thing to ask: Is the advisor a fiduciary? CFPs must act as fiduciaries, but other advisors may not operate under those strictures. Everything that a fiduciary does must be in the best interest of their clients.

Consider the type of financial advice you need

There isn’t a one-size-fits-all type of financial planner. Advisors can specialize in different areas, such as:

  • Financial planning: Focuses on all areas of your financial life, including savings goals, insurance, and tax planning
  • Investment services: Takes care of your investments and manages decisions regarding which investments to own and what investment accounts are best for your goals
  • Retirement planning: Coordinates all of the pieces that make up your finances in retirement, such as Social Security, taxes, investments, pensions, and more

Consider the type of client whom the advisor typically serves. For instance, some might take clients from all over the country, while others limit their practice locally.

Check credentials and certifications

Many levels of qualifications exist for financial professionals. A “financial coach” doesn’t require any formal training or certifications. Some organizations issue easy-to-get credentials that sound more impressive than they are. Not all credentials are created equally.

A CFP designation requires successful completion of a rigorous examination, which generates trust and implies competence. A chartered financial analyst (CFA) also must complete in-depth studies and pass an exam. Both designations have ethics and experience requirements. Look for these credentials when choosing a reputable advisor.

Why Do I Need an LGBTQ-Friendly Advisor?

Being a member of the LGBTQ+ community confronts a person with many challenges caused by prejudice and discrimination that are not faced by non-LGBTQ+ people. Some of these challenges make it harder to accumulate wealth. A supportive financial advisor will have good advice on how to overcome them.

How Do I Find an LGBTQ-Friendly Advisor?

There are online sources that specialize in locating LGBTQ+ and LGBTQ+-friendly advisors, but you can also use other search engines for advisors and then interview a selection with a view to determining their support and understanding of LGBTQ+ issues. In addition, asking friends and family for referrals can also yield good results.

Do Financial Advisors Have to Be Certified?

No. Anyone can call themselves a financial advisor or planner. However, there are certain certifications, such as certified financial planner (CFP) and chartered financial analyst (CFA), that require rigorous study and the passing of an exam. These certifications are good indicators of competence.

The Bottom Line

Members of the LGBTQ+ community face financial challenges all their own, which is why it is wise for them to seek an LGBTQ+ or LGBTQ+-friendly financial advisor to guide them. Ultimately, having a supportive advisor provides a welcome level of comfort. However, even if the advisor is in sync with LGBTQ+ issues, it’s still important to vet their credentials and work history thoroughly before you sign on as a client.

Article Sources
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  2. Certified Financial Planner Board of Standards. "CFP Professional Demographics."

  3. Certified Financial Planner Board of Standards. “How Many Non-Binary Advisors? CFP Board Now Counting.”

  4. U.S. Bank. "The LGBTQ+ Financial Landscape 2022 Insights Study." Pages 2, 12, and 23.

  5. U.S. Bank. "The LGBTQ+ Financial Landscape 2022 Insights Study." Page 5.

  6. Trans Legislation Tracker. "Tracking the Rise of Anti-Trans Bills in the U.S."

  7. The Trevor Project. "Issues Impacting LGBTQ Youth." Page 3.

  8. University of Wisconsin-Madison. "The Complexity Of LGBT Poverty in the United States."

  9. XY Planning Network. "Find Your Ideal Financial Advisor."

  10. Gay Lesbian Directory. "LGBTQ Gay Lesbian Financial Planners."

  11. Certified Financial Board of Standards. "Find Your CFP Professional."

  12. Boomerater. "Find a Financial Advisor."

  13. The National Association of Personal Financial Advisors (NAPFA). "Find an Advisor."

  14. Certified Financial Planner Board of Standards. “Our Priorities: Fiduciary Standard of Conduct.”

  15. Financial Industry Regulatory Authority (FINRA). "Chartered Financial Analyst (CFA)."

  16. Financial Industry Regulatory Authority (FINRA). "Certified Financial Planner (CFP)."

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