Financial Adviser
BeginnerA financial adviser is a professional who gives advice on managing money, such as investing, retirement planning, insurance, tax and estate planning, usually for a fee or commission.
Financial advisers help people make decisions about their finances. Their services can range from a one-off plan to ongoing management of a client’s investments and regular reviews.
Advisers are paid in different ways. Fee-only advisers charge a fixed fee, an hourly rate or a percentage of the assets they manage. Others earn commissions from the products they recommend, which can create conflicts of interest. Some use a mix of both.
For example, a couple approaching retirement might pay an adviser to review their pensions and savings, estimate how much income they can safely draw and recommend how to invest.
Rules on financial advice differ by country. Many countries require advisers to be licensed or authorised, to recommend only suitable products and to disclose their fees. Some advisers have a legal duty to act in the client’s best interest, known as a fiduciary duty. Before hiring an adviser, it is worth checking their qualifications, regulatory status, how they are paid and whether they are independent or restricted to certain products. The spelling financial advisor is also widely used.
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