Types of Financial Advisors
Fee Only Advisor
Glossary:
- Read more about Types of Financial Advisors
- Log in to post comments
Financial Advisor
A financial advisor is a professional who works to help their clients meet and manage their most important financial goals in life. A fundamental goal of a financial advisor is to increase the net worth of their clients over time, while protecting them from risks such as loss of income due to disability, premature death and long-term care expenses. Financial advisors will also work with clients in the areas of tax planning, estate planning, and retirement income planning and asset decumulation.
Working with Multiple Financial Advisors
The term financial advisor actually covers a huge number of fairly distinct disciplines. Financial planning and annuity product sales, for example, are very different fields.
In most instances, the financial planner and the person who handles the annuity purchase are the same. However, this does not have to be the case.
- Read more about Working with Multiple Financial Advisors
- Log in to post comments
What to Avoid in a Financial Advisor
A simple way to think about this would be to consider the opposite of each of the points in the previous chapter:
- Read more about What to Avoid in a Financial Advisor
- Log in to post comments
What to Seek in a Financial Advisor
- Objectivity: Does the information provided to you appear to be in your best interests and be free of any conflicts of interest? Is the advisor open to discussing products and solutions that may fall outside of their area of focus and expertise if it makes sense for you? The fiduciary question is a good starting point.
Glossary:
- Read more about What to Seek in a Financial Advisor
- Log in to post comments
The Importance of a Fiduciary
A fiduciary is someone who is legally required to act in the best interests of their customer. This means that your financial well-being is the number one priority for a financial advisor who is a fiduciary.
Some—but certainly not all or even most—financial advisors are fiduciaries.
Glossary:
- Read more about The Importance of a Fiduciary
- Log in to post comments
