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What is a financial advisor?

A financial advisor is an experienced individual or member of a financial services company who monitors your accounts and opportunities. Many financial advisors specialize in specific areas, such as retirements or investments. A financial advisor will look at the entirety of your financial status and the level of risk you are willing to take with certain investments to create a plan for your future. Other common reasons people seek a financial advisor include:

• Instruction: Many people seek objective guidance. A financial advisor will analyze and then offer advice on how to use your accounts, whether to buy or sell assets or determine if you need to save more.
• Goals: A financial advisor will create a short-term or long-term plan to help you achieve your financial goals, such as debt management, saving for retirement, or saving for a child's college fund.
• Investments: Because financial advisors spend a lot of time studying the market, many are able to research current investment opportunities and offer suggestions on the best option. They will also consider your personal comfort level with making risky investments while determining your options.

 

Do I need a financial planner?

A financial planner can offer an objective viewpoint on your finances and help you determine which actions you should take. While many people may assume a financial planner is only useful in the event they are saving for retirement or making investments, there are actually many other reasons this financial service can ease the burden. The presence of a financial planner can make your situation feel more secure. Some of the top reasons people turn to financial planning include:

• A life event changes your finances (such as an inheritance that you want to invest) or you realize you need to start saving for a goal (such as opening your own business)
• Need objective advice from someone who will double-check your plans and keep you on track to achieve your goals
• Unsure what to do with your finances or would prefer someone trained in financial services
• Self-employed
• Starting a family
• Have a high-level income

 

Common types of financial services

 There are many types of financial services available to the average individual and business. Most financial services companies offer multiple services to their customers. Each brand of the main financial services can be broken further into subsets, categorized by individual roles. The majority of individuals will require the use of at least one (or all) of these services throughout their life. The five common types of financial services used fall under the following categories:

• Banking: Commercial and personal checking, saving, and lending
• Investing: 401(k) and stock market
• Management: Advice from a financial planner or advisor
• Insurance: Home, auto, health, etc.
• Data management and resolution
  
  

Financial advisors can help you navigate through these different types of financial services as well as help you resolve any problems or questions you may come across. Many use the advice of either long-term or short-term financial planners to make the most out of each type of service at crucial points in their financial journey. 

 

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