What Are The Differences Between A Financial Advisor And An Investment Advisor?
Posted: Aug 24, 2014
When it comes to making the most of the money that you earn, it’s important to know who to turn to for the best advice. How do you know whether you need a financial advisor or an investment advisor?
A financial advisor usually helps you to plan out your investments so that you can make the most of your money and achieve the goals that you hope to achieve for the future. A financial advisor can be many things – an accountant, an insurance agent, or even a broker for a financial company. While some advisors may give you a comprehensive plan of action, some advisors may be limited by the company that they work for directing you to products that they will benefit from.
Financial advisors are not regulated by any professional organizations. They do not have to adhere to any rules or regulations in order to assist their clients in planning their finances. In addition, some financial advisors are only knowledgeable in certain areas, such as insurance plans. You should look for a financial advisor who is well-rounded and can provide you with an overall picture that will bring you the most benefits.
An investment advisor is a professional who is familiar with investment products and can help direct you when you are looking to build your portfolio through purchasing stocks. Investment advisors are also known as wealth managers, investment counselors, asset managers, and portfolio managers.
Investment advisors and the companies that they work for are governed and registered by the Securities and Exchange Commission (SEC). They may also be held accountable by the regulator of the securities in the state in which they practice. If an investment advisor oversees the assets of clients to the tune of $110 million and above, they fall under the regulations of the SEC. If the assets are less than that they are held to the state securities regulator.
When you are looking for an investment advisor make sure to check the background of the person you are looking to hire. You can check both the SEC and the state in which they practice to see if they have had any disciplinary action or complaints against them in the past.
Whether you choose to work with a financial advisor or an investment advisor, make sure that you are getting the right services for what you need. If you have children that will be going to college, or you have specific plans to retire at a certain age with a specific amount of money you should utilize the services of a financial advisor.
For New York based local information, you should visit the following website:Investment Advisors In NY
When it comes to working with an investment advisor make sure you are specific in what it is you are looking for as far as financial returns. If you are young and able to take risks you could make or lose money. But if you are preparing for your future and need to live off of the money you earn, the services of an investment advisor can find more conservative ways to build your portfolio.
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