Guide to Financial Advisors: What Does a Financial Advisor Do?

Financial advisors are professionals who assist people in a variety of means of financial planning. The umbrella of “financial advisor” includes a variety of professions including certified financial planner (CFP), investment broker, and fiduciary. These advisors help people create financial plans based on their current and projected financial health and their risk tolerance.

Financial advisors may help their clients plan their finances to meet big financial goals (like buying a house or saving for college), save for retirement, or invest their money. These professionals are required by the Securities and Exchange Commission to abide by fiduciary standards and only act in the best interests of the client.

Financial advisors assess their clients’ financial health to help them plan saving and investment strategies to reach their short-term and long-term financial goals. Here are some specific things that a financial advisor may help with.

1. 1. Retirement planning: Saving and planning for retirement is one of the most common ways that a financial advisor will help their clients. They do this by assessing your regular expenses and advising on the best places to invest your savings to help your money potentially grow.
2. 2. Planning investment strategies: Financial advisors like investment brokers will provide stock market research and analysis to recommend the best strategies and investment advice for their client’s investment portfolio.
3. 3. Tax planning: Financial advisors can help people analyze their taxes in a given year to help keep their payments low and get the most out of their tax returns.
4. 4. Estate planning: Financial advisors often help their clients figure out what happens to their assets or other finances in the event of their death or loss of agency.
   
5. 5. Insurance product sales: With the right licensing, advisors can also work as insurance agents, selling disability and life insurance.
6. 6. Wealth management: Certain financial advisors (specifically wealth managers) help their clients invest and budget large amounts of wealth. Wealth managers are typically responsible for dealing with high-profile or high-net-worth clients.
   

There are many different paths to becoming an investment advisor depending on what sort of specialty you want to focus on. Here is a broad overview of one path to becoming a financial advisor.

1. 1. Obtain a bachelor’s degree. Financial advisors will be required to have a bachelor’s degree. Obtaining a four-year degree in a field like finance or economics can help further your understanding of the general knowledge required for financial advising. You do not need to have a bachelor’s degree in a field related to finance, but it can help set you up for success with exams and practical experience. If continuing education will give you a leg up in your field, you can also obtain a master’s degree, such as a Master of Business Administration (MBA), to further your job prospects with certain firms.
2. 2. Get internship experience. Finding an internship in a relevant field can help you gain the experience and knowledge necessary to understand how an advisor can meet the financial needs of their client. If possible, try to gain a few different experiences in related fields to see which department fits you best.
3. 3. Choose your career path. Financial advisory belongs to a general field of financial planning services. While advisors and planners can cover a few fields, it can be helpful to focus on a particular area of study once you’ve determined which area suits your specific skill set or interests. If you want to help everyday people plan out their personal finances, consider becoming a financial planner. If you want to help high-profile clients manage their wealth, pursue a career as a wealth manager. Unless you want to remain a general advisor, try narrowing down your preferred field to find which career is right for you.
4. 4. Get your certifications. Depending on your employer (or if you plan on selling investment products), you may have to obtain particular Financial Industry Regulatory Authority (FINRA) certifications in order to become a licensed financial advisor. You may also have to take certain certification exams if you want to get into more specific financial advising, such as becoming a certified financial planner (CFP) or registered investment advisor. Some financial advisors also start off as certified public accountants (CPA), which can be a beneficial launchpad for becoming a financial consultant.
5. 5. Search for jobs. Look for positions at brokerage firms, investment planning firms, or other finance-based employers that can offer entry-level experience in your desired field. Expand your network whenever possible, and make sure you research each position thoroughly so you know exactly what each job entails.

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