What Does A Financial Advisor Do

What Does a Financial Advisor Do?

Financial advisors evaluate their clients’ overall financial situation and provide guidance on issues including budgeting, retirement planning, tax strategies, both short and long-term saving, and wealth management.

Updated on Jan 09 2020

You’ve probably heard a lot of talk about the importance of a financial advisor, but what do they actually do to help you? A financial advisor’s responsibilities can seem a bit vague at times. But, they perform some specific services that you’ll likely need at different stages in your life. Financial advisors evaluate their clients’ overall financial situation and provide guidance on issues including budgeting, retirement planning, tax strategies, both short and long-term saving, and wealth management. They typically help people financially prepare for many of life’s largest events. And, there aren’t any specific rules or requirements for hiring a financial advisor. Some people hire an advisor and work with them for the rest of their lives. Others may only hire an advisor for a specific piece of planning. But, you’re free to establish a relationship that works for your situation.

People hire a financial advisor for a wide range of reasons. Some of the most common reasons involve major life events. Others hire financial advisors when setting their sights on financial goals. People often look to hire financial advisors who are also a fiduciary. This means that they’re legally obligated to act in the best interests of their clients, regardless of the profit they stand to make. Learn more about what a financial advisor can do for you here:

Financial Planning

This is one of the most obvious answers to the question “what does a financial advisor do?” An advisor can help you create a personalized plan for your future finances. People often seek this service when there’s an upcoming change in their immediate family, such as a marriage or the birth of a child. However, you don’t need to be engaged or expecting a child to receive financial planning services. You may just want a clearer picture of your financial future. Regardless, you stand to benefit from the services of a financial advisor.


There are many different ways to go about budgeting. And, you could have different goals for creating different types of budgets. People often create a new budget when entering into a new phase of life. This could mean a new job, moving to a new location, or starting a family. Regardless of why you need a budget, a financial advisor can help you create one that works for your specific situation. Plus, a good financial advisor will take your long-term financial goals into account. This way, you won’t just be creating a plan that keeps your head above water, but one that sets you up for continued success in the future.

Estate Planning

Whenever you’re dealing with a considerable amount of assets, you’ll need an expert financial advisor to help with your estate planning. While it’s never easy to think about passing on, it’s something that must be done if you don’t want your family and loved ones to be left dealing with complex issues alongside their grief. To prevent this, you’ll need a proper estate plan. Financial advisors can help you develop an estate plan that considers each of your family members fairly while respecting your overall wishes. With this in place, your family and loved ones won’t be left dealing with additional stress during an already difficult time.

Retirement Planning

Retirement should be one of the biggest adventures of your life. But, you can only get there with comprehensive planning. This is where a financial advisor comes in. Some financial advisors even specialize in retirement planning. There is an array of factors to consider when planning for retirement, and unless you’re an expert yourself, it’s possible for some things to fall through the cracks. So, the moment you begin thinking about creating a retirement plan, you should consult a financial advisor. They can guide you through the entire process to ensure that you feel comfortable moving forward.


Investing should be an aspect of everyone’s overall financial plans. But, it can be difficult to create a plan that works for you, especially if you don’t have the financial expertise. A good investment strategy can set you up for both short and long-term success. However, the same tactics won’t work for everyone. You need a plan that considers all of your specific conditions and your exact situation. Because of this, you should consider a financial advisor. Financial advisors can evaluate your situation and create an investment strategy just for you based on numerous factors. And, the top financial advisors will take the time to truly understand your needs and goals. While you can, of course, invest on your own, doing so with a financial advisor can often prove more beneficial.

Tax Planning

Tax season can always be a complicated time. But, it doesn’t have to be. An expert financial advisor can not only ensure that your taxes are filed correctly, but also help you receive the maximum return possible. Financial advisors have the expertise to gauge your unique situation and provide specific options that work for you. So, you should contact a financial advisor when you’re looking to maximize your tax returns.

Financial advisors can help you make sense of nearly any personal finance situation. No matter what it is you need advice on, an expert financial advisor can point you in the right direction. And, it pays to consult with an advisor before hiring them. You probably want someone who can handle all of your needs. This way, you won’t need to hire different financial advisors for different types of planning. Plus, it can often pay to find a local financial advisor. This can make things easier for you overall, especially if you don’t prefer to receive advice digitally or over the phone. With their range of benefits, anyone with financial goals of any kind would benefit from a financial advisor. Learn how you can find one that works for you today, and get started.

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