Financial Advisor Definition

A financial advisor usually offers assistance with — or, in some cases, complete management of — your finances. The all-inclusive term “financial advisor” is used to describe a wide variety of both people along with services, including investment managers, financial consultants and financial planners. However, we are going to be concentrating on the specific term and service of a financial advisor.

What Do Financial Advisors Do, Exactly?

The services provided by financial advisors will vary greatly based on many things such as the exact type of advisor, but speaking in general, a financial advisor will assess your current financial situation — including your assets, debts and expenses — as well as identifying areas for improvement.

A good financial advisor will do things like ask you about your goals and create a well thought out strategy to help you reach them. This might mean calculating how much you should save for retirement while making sure you have an adequate emergency fund as well as offering tax-planning suggestions or helping you refinance or debt to pay off. These advisors can also help invest your money. This can be done by either recommending specific investments or in some cases, providing complete investment management services.

Online Financial Planning Services

Online financial planning services generally offer things like investment management combined with virtual financial planning. Consider an online financial planning service if you would rather work with a human advisor, however, you don’t mind meeting that advisor either by phone or video chat. You’ll actually save money by meeting virtually but still receive investment personalized management.

Perhaps you want to choose exactly which financial advice that you receive. Some services charge a flat fee based on the complexity of the advice you need and investment management is also included. Other services charge a fee for investment management and offer a la carte planning sessions with an advisor. For many people, the online model is a better fit because it combines lower costs with a high level of service.

Maybe you’re undergoing or planning a big life change, such as getting married or divorced, having a baby, buying a house, taking care of aging parents or starting a business. Perhaps your investments have grown or your financial life has gained complexity beyond what a robo-advisor can handle. Maybe you just prefer to do things a bit more the old fashion way and meet with someone face to face, even if that is over a computer screen. Ready to start? Here’s how to choose a financial advisor.

When to get a financial advisor

If you find it difficult to prioritize your financial goals, you may need a plan for where and how to save. If you want help with something like investment management, then you may want to work with a financial advisor. These experts bring an outside and experienced view to your finances, take a holistic look at your situation and can usually suggest several improvements. Financial advisors can also help you navigate complex financial matters such as taxes, estate planning and even just paying down debt. They can also help you invest with a specific strategy, such as impact investing. A good financial advisor can be more than well worth the cost you pay up front if you’re able to save more money, cut your expenses and better plan for the future. A financial advisor can also help you feel more secure in your future financial situation and let’s be honest. Sometimes that in itself can be priceless!