How much a financial advisor costs will depend on what you’re looking for.

A financial advisor is a professional who gives advice about managing your money to reach financial goals.
Financial advisors are not regulated, though ones who provide investing advice and services must register with their state or federal regulatory bodies.
Financial advisors offer a wide variety of services, such as portfolio building, tax and estate planning, budgets, and more.

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Do you plan to retire one day? Maybe get married or go to college? How about paying down some debt? These are all reasonable and attainable financial goals. For many of us, however, it’s not always clear what we have to do to make these dreams come true. And that’s when it might be a good idea to enlist some professional help.

A financial advisor can be a valuable asset if you have financial goals you want to reach, but aren’t sure how to make that happen. They can also educate you about financial products, tax advantages and insurance options you may not have known could help you build and protect wealth. Here’s a closer look at what a financial advisor is and what they can offer you.

What is a financial advisor?

A financial advisor is a professional who provides their clients with guidance pertaining to financial goals, mortgages, insurance, retirement, investing, and general financial management. The term is often used interchangeably with “financial planner” and can cover a very broad scope of expertise. While some financial advisors offer a variety of services, many specialize only in making and managing investments.

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“I became a financial advisor to mentor my clients through all financial aspects of their lives,” says John Stoj, investment advisor representative and founder of Verbatim Financial. “This can include investments, but also questions surrounding careers, business ownership, estate planning, insurance, and taxes … essentially anything that can benefit from planning.”

Types of financial advisors

These days, you’ll find a variety of types of financial advisors available to you. Some of the most common include:

Robo-advisor: A robo-advisor is an automated platform that makes investment recommendations based on information you input to the system. It uses algorithms and often artificial intelligence to determine your risk tolerance and what investments may be good to make. These kinds of services are generally low-cost, but limited in what they can offer.

Online financial-planning services: These services go a step further than robo-advisors, often offering a broader scope of options. Online financial-planning services are usually automated and can help you build financial plans and budgets, in addition to portfolio building, goal setting, and reporting.

Traditional financial advisors: These include Certified Financial Planners (CFP), brokers, Registered Investment Advisors (RIA), and wealth managers. Traditional financial advisors usually provide comprehensive, personalized advice regarding your financial life. They can provide product recommendations based on your specific situation …read more

Source:: Business Insider


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