A financial advisor (adviser in the UK) is a trained specialist who helps people with their investments and financial planning. This can mean anything from retirement planning to brokerage advice to tax arrangement. A financial advisor can either work on commission or charge a per-transaction fee every time they work with a client. The phrase "financial advisor" is sometimes used interchangeably with the word "broker." While both professionals offer financial advice, a broker often deals only with investments, while a financial advisor can also offer guidance on savings, creating a budget, and dealing with debt.

The main reason people hire a financial advisor is to help with retirement planning. In this case, a financial advisor can help with forecasting future economic trends, decide how and where to invest, tax liabilities, and budgeting. A financial advisor can also suggest the best way to use your 401(k)/401(k) Roth account; and how stocks and mutual funds are best distributed.

In the United States of America, a financial advisor needs to be licensed to provide advice on securities investments, but need no specific education for anything else. A certified financial planner (CFP®), on the other hand, must meet certain education requirements, plus pay a yearly recertification fee. The certification allows professionals to deal with the client's financial status, and estate and insurance planning.

Choosing a financial advisor can be difficult, and it is important that you take your time when doing so. You want somebody you can trust and form a lasting relationship with. On the first meeting, ask questions about fees and services, and make sure you know what you will be getting for your money. Ask how long they have been in business and what kind of people they usually work with. Somebody who works mostly with small business may not have enough practical experience to give advice on personal investment.

A good professional financial advisor will work based on your financial goals and will take into consideration your comfort level when it comes to investment risks. He or she will also suggest appropriate steps to get you working on the right direction.