What Are the Main Types of Financial Advisors?

INVESTMENT MANAGEMENT

What Are the Main Types of Financial Advisors?

April 27, 2020

CATEGORY

What Are the Main Types of Financial Advisors?

April 27, 2020

Financial advisors are worth the investment, but depending on your circumstances, you may want to find a specific advisor to help you through your questions. Let’s go through the main types of financial advisors and when they can help you.

Fiduciary advisors

A fiduciary advisor is a type of financial planner who is morally bound to work in your best interest. The Security and Exchange Commission directs that fiduciary duty includes:

  1. Acting with undivided loyalty and utmost faith.
  2. Providing full and fair disclosure of facts.
  3. Disclosing and avoiding (when possible) all potential conflicts of interest.
  4. Not misleading clients.
  5. Not using a client’s assets for his or her own benefit, or the benefit of other clients.

In general, there is evidence that fiduciary financial advisors have a higher return on investment for their clients than those not bound to the esteemed fiduciary standard. Whatever reason you are seeking out a financial advisor, you should try to hire one that is a fiduciary. Read more to see how to find a fiduciary financial planner.

Retirement advisors

Most financial planners have a specialty, so if you are concerned with retirement planning, seek out a retirement advisor who has experience with the ins and outs of retirement. Retirement advice can differ from other types of investment advice. Those well-versed in retirement will be able to help you reach your goals by understanding your needs post-career.

Financial planners

A financial planner can be an all-encompassing advisor that can help you meet your financial goals. While they may not specialize in any one circumstance, they will be able to help you create a financial plan involving risk management, investment planning, tax planning, and a variety of other financial situations.

Wealth managers

Wealth managers tend to work with high net worth individuals. Wealth management is considered to be one of the highest levels of financial advice services. Because of the large number of assets that their clients have, wealth managers are especially versed in situations that disproportionately affect the wealthy, such as estate taxes and large investments.

Investment advisors

Advisors who manage their client’s investments and give investment advice are investment advisory. Investment advisors “work for firms that are registered as portfolio managers. These firms can be independent or owned by banks.

Personal banker

Personal bankers work at banks or trust companies. These bankers help customers with their bank accounts and work to build a long-term relationship with their clients. They are there to help bank customers address their specific financial needs.

Different financial circumstances require different types of advisors. To receive the best advice for your situation, be sure to seek out an advisor who specializes in the type of help you are looking for.

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Main Types Of Financial Advisors

What Are the Main Types of Financial Advisors?

Let’s go through the main types of financial advisors and how each type may be of help to you.

Financial advisors are worth the investment, but depending on your circumstances, you may want to find a specific advisor to help you through your questions. Let’s go through the main types of financial advisors and when they can help you.

Fiduciary advisors

A fiduciary advisor is a type of financial planner who is morally bound to work in your best interest. The Security and Exchange Commission directs that fiduciary duty includes:

  1. Acting with undivided loyalty and utmost faith.
  2. Providing full and fair disclosure of facts.
  3. Disclosing and avoiding (when possible) all potential conflicts of interest.
  4. Not misleading clients.
  5. Not using a client’s assets for his or her own benefit, or the benefit of other clients.

In general, there is evidence that fiduciary financial advisors have a higher return on investment for their clients than those not bound to the esteemed fiduciary standard. Whatever reason you are seeking out a financial advisor, you should try to hire one that is a fiduciary. Read more to see how to find a fiduciary financial planner.

Retirement advisors

Most financial planners have a specialty, so if you are concerned with retirement planning, seek out a retirement advisor who has experience with the ins and outs of retirement. Retirement advice can differ from other types of investment advice. Those well-versed in retirement will be able to help you reach your goals by understanding your needs post-career.

Financial planners

A financial planner can be an all-encompassing advisor that can help you meet your financial goals. While they may not specialize in any one circumstance, they will be able to help you create a financial plan involving risk management, investment planning, tax planning, and a variety of other financial situations.

Wealth managers

Wealth managers tend to work with high net worth individuals. Wealth management is considered to be one of the highest levels of financial advice services. Because of the large number of assets that their clients have, wealth managers are especially versed in situations that disproportionately affect the wealthy, such as estate taxes and large investments.

Investment advisors

Advisors who manage their client’s investments and give investment advice are investment advisory. Investment advisors “work for firms that are registered as portfolio managers. These firms can be independent or owned by banks.

Personal banker

Personal bankers work at banks or trust companies. These bankers help customers with their bank accounts and work to build a long-term relationship with their clients. They are there to help bank customers address their specific financial needs.

Different financial circumstances require different types of advisors. To receive the best advice for your situation, be sure to seek out an advisor who specializes in the type of help you are looking for.

Related Articles: