Financial Adviser


DEFINITION of 'Financial Adviser'

A professional who helps individuals manage their finances by providing advice on money issues such as investments, insurance, mortgages, college savings, estate planning, taxes and retirement, depending on what the client requests. Some financial advisors are paid a flat fee for their advice, while others earn commissions from the investments they sell to their clients. Fee-only arrangements are widely regarded to be better for the client.

BREAKING DOWN 'Financial Adviser'

Aside from asking friends and family for referrals, professional organizations like the Financial Planning Association (FPA) and the National Association of Personal Financial Advisors (NAPFA) can help you find an advisor. When choosing a financial advisor, it's important to ask if they have any FINRA licenses or official credentials. Certified Financial Planner® (CFP®), chartered financial analyst (CFA), chartered financial consultant (ChFC), and registered investment advisor (RIA) are good indicators of an advisor's qualifications.

Do you think that it's time to get advice on your finances? Check out the article on Find the Right Financial Advisor.
For Financial Advisers with a vision to be successful, read How To Be A Top Financial Advisor

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  1. What are the reasons that cause financial advisors to fail in their careers?

    Up to 90% of financial advisors fail in their careers and the amount of certified financial planners around the nation declines ... Read Full Answer >>
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    A hedge fund manager does not necessarily need any specific license to operate a fund, but depending on the type of investments ... Read Full Answer >>
  3. Is a financial advisor allowed to pay a referral fee?

    A financial advisor is allowed to pay a referral fee to a third party for soliciting clients. However, the Securities and ... Read Full Answer >>
  4. Do financial advisors get paid by mutual funds?

    Financial advisors are reimbursed by mutual funds in exchange for the investment and financial advice they provide. A financial ... Read Full Answer >>
  5. Do financial advisors prepare tax returns for clients?

    Financial advisors engage in a wide variety of financial areas, including tax return preparation and tax planning for their ... Read Full Answer >>
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    Fiduciary duty is one the most important professional obligations. It basically provides a much-needed protection for individuals ... Read Full Answer >>

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