What is a financial advisor and what do they do?
Financial advisors are experts in the field of financial management and strategy, but what services do they provide, and how much do they cost? Find out now.
Summary
Financial advisors provide expert financial advice for your personal situation or circumstances.
You can obtain advice on saving, investing, retirement, taxes, estate planning and more.
Finding the right financial advisor depends on your requirements, goals, and circumstances.
The cost of financial advisor services differs depending on the service and the rates option charged.
By answering a few simple questions, Unbiased can match you with a financial advisor perfectly suited to meet your needs and goals.
The hiring rate of financial advisors is on the rise. But despite their growing popularity, there’s still some confusion around what financial advisors do and what circumstances warrant hiring them.
In this guide, we’ve outlined the costs, services, and situations relevant to financial advisor services.
What is a financial advisor, and how does a financial advisor work?
A financial advisor is a person who offers professional, comprehensive advice and guidance in relation to personal financial management.
Financial advisors work independently or with an advisory firm to obtain a client base and provide them with personalized, top-notch financial advice for their circumstances.
What advice can financial advisors provide?
Financial advisors can provide advice across an extremely broad spectrum of different finance-related situations.
However, some of the most common areas of expertise include long-term savings, investment strategies, retirement planning, financial recovery after a divorce or life-changing event, goal setting, estate management, taxes, and mutual fund trading.
What services does a financial advisor offer?
If you want a clearer idea of what kind of financial advisor services are available, look no further:
Setting up an emergency fund plan
Saving for retirement
Creating a financial plan
Starting or expanding an investment portfolio
Tax planning
Planning to meet long and short-term financial goals
How much does a financial advisor cost?
The cost of financial advisor advice depends on the advisor in question and the services a client is hoping to obtain. It also depends on the fee structure as set by the advisor (hourly, fixed-rate, commission-based, etc.).
From an hourly perspective, financial advisor advice may cost anywhere between $120 and $330 per hour for their services. From a fixed-rate perspective, the average rate spans between $7,500 and $55,000 for a comprehensive financial planning strategy.
When might I need a financial advisor?
There are many instances in which you need financial advisor services. It could be due to pursuing a particular financial goal or simply ensuring your future is financially secure.
These are just some of the situations where seeking a financial advisor’s advice is advisable:
You don’t know what to do with your savings.
You are interested in investments or expanding your portfolio.
You are wrapping up an estate.
You want to save for college or retirement.
You want to reduce your tax burden.
You’ve come into some inheritance and want to use it wisely.
You want professional guidance for your financial decisions.
Are there scenarios where I legally need a financial advisor?
There are no situations where having a financial advisor is a legal requirement.
Financial advisor services do have many practical advantages and benefits, but they are not considered mandatory for navigating any particular legal situation.
What questions should I ask myself when seeking financial advice?
When obtaining financial advisor services, it is a good idea to come prepared with a decent understanding of your current situation and future goals.
Here are some questions to ask yourself before seeking professional financial advice:
How much money am I willing to spend? Financial advisor advice can become costly without proper consideration. Determine a budget beforehand.
What exactly do I need advice for? The more you understand about your current situation, the easier it will be to find a financial advisor whose expertise aligns with your needs.
What are my long and short-term financial goals? Ask yourself what you want to get out of the arrangement. When your financial advisor asks you the same question, you’ll have a quick, clear answer.
How can I find the right financial advisor for me?
In this economically unpredictable world, financial advisory services are incredibly valuable and useful. When it comes to choosing a financial advisor, there are several key considerations. These include what type of financial advice or assistance you need, your budget, your goals, and your plans for the future.
If you would like to learn more about what a financial advisor does or where to find one that can assist you through a financial situation, Unbiased can match you with an expert in this field.
Senior Content Writer
Rachel is a Senior Content Writer at Unbiased. She has nearly a decade of experience writing and producing content across a range of different sectors.