Financial advisors help you in matters related to money. They create plans to achieve your financial goals. They assist you in saving, investing wisely, and reducing debt.

What do financial advisors do? (1)

  • Financial risk and wealth can be building when financial advisors create strategies for the long term.
  • They set the game plan so you can achieve your financial goals.
  • If you are planning to retire in 20 years and you want your child to study in a private university in the next 10 years, financial advisors are there to advise you wisely.
  • Financial Advisor helps you in saving money.
  • Financial advisors help in selecting the type of account you need.
  • They help you in selecting the kind of insurance you need that may include long-term care, disability, and term life.
  • Estate and tax planning is also handled by financial advisors.
  • Financial advisors educate you about the understanding that is involved in meeting your future goals.
  • They help you with the understanding of complex investments, matters relevant to tax and insurance.

Types of Financial Advisors:

  1. Investment advisors:

He is a financial professional who must be registered and this term is used as a job title. He gets paid for advising on investment to clients. They also manage the assets of their clients directly. Registration of an investment advisor can be checked with a Broker check by FINRA, which is FINANCIAL INDUSTRY REGULATORY AUTHORITY.

  1. Broker-dealers and brokers.

Securities like stocks, mutual funds, and bonds are selling and buying by brokers and broker-dealers. They buy or sell on behalf of their clients or their account or both. Broker dealers are also members of FINRA. Broker dealers can sell their financial products according to their license. Mutual funds and variable annuities can be sold by the broker who has passed the Series 6 exams. Additional securities can be sold by the broker who has passed the series exam 7. Brokers can be verified by broker check.

  1. Certified Financial Planner:

Financial advisors should meet the requirements of a certified financial planner board. CFPs should pass the certification exam and have high ethical standards. Certified financial planners should have trusty duties to their clients. Services that don’t require regulation like information about how to pay debt and how to plan for retirement.

  1. Retirement Planners:

Retirement planners are qualified and trained professionals, which are specifically hired to entertain the basic needs of retiring individuals at the back-end of their ages by giving them suitable financial plans according to their budget. There is no difference between financial and retirement planners in terms of ranks although the duties are not the same, Retiring people on their retirement get the services from these professionals to enhance the quality and comfort for the rest of their lives. This sort of planner required full information regarding financials so that they can come up with the best plans for you and gives you an idea about when and where you need to spend money. That helps to save money for future aspects. Once you get engaged with any retirement advisor and hire their services, you will be tension-free from daily, monthly, and yearly expenses on health, social gathering activities, taxes, house rent, etc.

Responsibilities and type of advice that retirement planner gives:

  • They are responsible for determining and calculate the best package that is relevant to your monthly pensions.
  • They will tell you about the best solution and time to take benefits of social security and by which means.
  • They give you proper guidelines that how to choose the pension distributions either monthly or quarterly to reduce the taxes on each withdrawal amount because as much as you withdraw your money from an account you will have to pay taxes for it. So, they try to minimize that rate of extra charges.
  • They guide you about the right ways to invest your money and earn the best profits on it.
  • The right money that you will receive after your retirement and what’s your immediate expenses after getting retired.
  • They define the whole mechanism of mortgage whether to pay it during or before retirement.

Charging methods of Retirement advisors:

They will charge you in different ways as per client convenience and demand such as hourly, monthly, or yearly basis. Hourly rate is not expensive because of short-term services but monthly and the yearly rate is a bit more due to the cash flows maintenance and retirement income plans monitoring throughout as you hired the retirement planner.

Pros and Cons (2)


Personal Income: financial advisors can year $90,000 on average per year. They also earn commissions and make their incomes high.

Growth potential: The growth rate of a financial advisor is high as there will be a 10% increase in job opportunities for the next ten years.

Client diversity: financial advisors can select their clients whom they want to work with. They select based on their education and experience.

Professional flexibility: financial advisors can work for a firm or they can work independently. Working independently can give flexibility to the advisor to select their clients.


High stress: the job of a financial advisor is very stressful as you have to manage everything perfectly. But regardless of that stress, you have to keep yourself calm and tell your client that everything is okay.

Prospecting: you have to prospect for your clients through calls, emails, networking, and conferences. When you are deciding to step into this field you must know the first person to contact.

Regulations and compliance: To work as a financial advisor you must get yourself registered and must have your license.

Continuous education: To maintain the license, the financial advisor should continue their education.

Lots of hard work: it is a very effort-based job ad you have to satisfy your client. At the start, many financial advisors would spend more than sixty hours a week on one client.