What does a Financial Investment Advisor do?

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  • Written By: Cassie L. Damewood
  • Edited By: Jenn Walker
  • Last Modified Date: 04 April 2020
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A financial investment advisor provides guidance to clients who seek to increase or secure their wealth through investment speculation strategies. He may specialize in one area of investments, but typically advises on a wide range of options and plans. An advisor may work independently or be employed by a bank, brokerage firm or investment group.

At the initial meeting with his client, a financial investment advisor normally establishes the amount of money to be invested. He then typically interviews the client to determine if he or she is seeking a long- or short-term return on the investment, what level of risk is desired and what outstanding debt currently exists. To make a sound recommendation, he also commonly asks the tax bracket into which the client falls, the types of insurance coverage in place and what savings have been earmarked for emergency situations. Considering all of these factors, he normally presents several options that meet the client’s needs.

The recommendations made by a financial investment advisor are generally wide-ranging and versatile. He may suggest putting money in securities, real estate, mutual funds or stocks and bonds. To ensure his client makes sound judgments, he normally explains the benefits and risks of all these options. While he may make general recommendations, he is bound by industry regulations to never recommend investing in a specific company.


As his client decides on which options are best suited for the funds to be invested, the advisor often interjects what tax implications apply to each choice under consideration. He is customarily expected to present his advice in an objective manner and leave the final investment choices solely up to the client’s discretion. To illustrate points, the advisor frequently creates fictional scenarios for his client to consider before finalizing decisions.

A person in this position typically maintains close and long-term ties with his clients. He is generally expected to keep them informed of market trends and advise on investment strategies based on his expertise. An advisor in this position typically meets with his clients on a regular basis to review their portfolios and discuss possible changes to their investment choices.

A financial investment advisor’s long-term success often depends not only on the accuracy of his advice but also on his integrity. A competent advisor is always expected to have the best interests of his clients in mind. His reputation for honesty and sound counsel normally increases his client base through client referrals.

Most people in this position have a bachelor’s degree in accounting, investment banking or business administration. Some larger firms may require a master’s degree with concentration in one of those specialties. Advisors commonly attend investment seminars on a regular basis to keep abreast of industry trends.


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