Financial Advisors: Everything You Need To Know

By Cameron Williamson
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A financial advisor is a professional who helps people make smart decisions with their money. Vincent Camarda Financial advisors typically have experience in accounting, tax law, and investment planning. They may also be certified financial planners (CFPs).
What Does A Financial Advisor Do?
If you’re thinking about hiring a financial advisor, you’re not alone. In 2019, 36% of Americans said they planned to use a financial advisor in the next 12 months, according to a Northwestern Mutual study.
Choosing the right financial advisor is an important decision. In this article, we’ll cover everything you need to know about financial advisors, including what they do, how to find one, and what questions to ask before you hire one.
The primary role of a financial advisor is to help you make informed decisions about your money. Financial advisors typically have experience in accounting, tax law, and investment planning. Some may also be certified financial planners (CFPs).
A financial advisor can help you with a variety of tasks related to your finances, including:
– Developing or updating your financial goals
– Tracking your net worth
– Reviewing your insurance coverage
– Assessing your retirement readiness
– Analyzing your investment portfolio
– Developing a tax strategy
– Planning for major life events such as buying a home or having a baby
– Managing debt
– Creating a budget
Guide: How To Find A Financial Advisor
Finding the right financial advisor doesn’t have to be difficult. Here are some tips on how to find a financial advisor that’s right for you:
Start by asking family and friends if they recommend anyone. Then, check out the Investment Adviser Public Disclosure website to see if there have been any complaints or disciplinary actions against potential advisors. Once you’ve compiled a list of potential candidates, check out their websites and read their biographies to better understand their experience and areas of expertise.
Finally, set up initial consultations with each of the advisors on your list so you can ask them questions and get a feel for their communication style and personality.