Personal Financial Advisor

AAA

DEFINITION of 'Personal Financial Advisor'

Professionals who help 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 help with. Some financial advisors are paid a flat fee for their advice, while others earn commissions from the investments they sell their clients. Fee-only arrangements are widely regarded to be better for the client.

INVESTOPEDIA EXPLAINS 'Personal Financial Advisor'

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 is 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) credentials are good indicators of an advisor's experience.



RELATED TERMS
  1. Chartered Financial Analyst - CFA

    A professional designation given by the CFA Institute (formerly ...
  2. Certified Financial Planner - CFP

    The CFP legal team has provided its official definition, along ...
  3. Financial Planner

    A qualified investment professional who helps individuals and ...
  4. Money Manager

    A business or bank responsible for managing the securities portfolio ...
  5. Financial Industry Regulatory Authority ...

    A regulatory body created after the merger of the National Association ...
  6. Volcker Rule

    The Volcker rule separates investment banking, private equity ...
Related Articles
  1. Shopping For A Financial Advisor
    Options & Futures

    Shopping For A Financial Advisor

  2. Paying Your Investment Advisor - Fees ...
    Investing Basics

    Paying Your Investment Advisor - Fees ...

  3. 7 Financial Advisor Red Flags
    Personal Finance

    7 Financial Advisor Red Flags

  4. Dispelling 5 Myths About Financial Planners
    Budgeting

    Dispelling 5 Myths About Financial Planners

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center