In a nutshell, a financial advisor is professionally trained to analyze your goals and assist you in setting up a workable financial plan to support achieving those goals.

What does a financial advisor do?
Your professional financial advisor will look at where you are now and where you want to be in the future. They will then sit down with you and set you on the right long-term financial path. Taking into account all aspects of your current lifestyle and future goals, together the two of you will work out a financial plan. This plan will most likely include investing in stocks, bonds, mutual funds, notes, insurance products and more.

The key to a strong and long working relationship with your financial advisor is developing and maintaining a partnership of mutual trust and respect built on two-way open honest communication.

Here’s a general overview of what a financial advisor can do for you:

Help you with estate planning – This will make sure that when your assets pass to your family/loved ones they will have retained as much value as possible.

Help you achieve your long-term financial goals – They will work with you to analyze where you are now and where you want to be in the future. This is a large part of what they do. Your advisor will then advise you on how to financially shore up the weaknesses and build on the strengths.

Help you figure out the most effective ways to grow your money with a minimum of risk – This involves a professional and objective look at how you want to use your money now and into the future. Current needs, future educational plans, health care, retirement and other long-term goals are analyzed and assessed. From that assessment, a mutually agreeable financial plan is developed.

How do financial advisors get paid?
~ Many advisors receive a commission on the financial products you purchase (stocks, bonds, etc.)

~ Some financial advisors are “fee-based” and that means they charge a fee and also receive a commission on the products.

~ And then, there are “fee only” advisors whose fee is paid one hundred percent directly by their clients.

When choosing a financial advisor it is wise to work out in advance how the advisor will be paid and to request a copy of that fee agreement.


Your relationship with your financial advisor is an important one – they have a direct impact on your financial future. Open lines of communication are vital. If you don’t understand what a financial advisor does, ask them to explain and get that explanation in writing. You have a right to be assured that your financial future rests in competent professional hands.


**Please check with a financial professional before making financial decisions. This article is not intended as investment or financial planning advice.**


I recommend David Bach’s Smart Women Finish Rich because there is an entire section on choosing and working with a financial advisor. I've included a link to Amazon.com: Smart Women Finish Rich

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