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.
BREAKING DOWN '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.