Once you've decided to get financial advice, it's time to look for the right person for the job. Where you look — and whom you choose — will depend on your goals and the kind of relationship you want to develop. Employees of most financial services institutions, such as
brokerage firms,
banks,
mutual funds,
and insurance companies, provide financial planning and investment advice.
1.
Stockbrokers/financial advisers/financial consultants. Stockbrokers — sometimes called financial advisers or financial consultants — work for brokerage firms and provide advice either on specific investments or as part of an overall financial plan. They buy and sell stocks, bonds, mutual funds, and other financial products for your account and may be paid either commission based on the number or volume of trades, or an annual fee based on
the value of your account.
2.
Financial planners. Sometimes called financial consultants or advisers, financial planners work individually or for local or nationwide companies. For a fee, a commission, or both, they provide financial planning and investment advice and offer ongoing evaluation of investment strategy. Some, but not all, are licensed to sell insurance,
annuities,
and securities.
3.
Bank investment representatives. These financial advisers work in banks and bank branches. They advise on investing in insured bank products such as
CDs
and uninsured products offered through the bank, such as mutual funds and annuities, and sometimes other investments. They may also provide day-to-day banking assistance. They receive a salary, and sometimes commission on the sale of annuities and mutual funds.
4.
Certified public accountants (CPAs). CPAs have private practices, ranging from sole practitioner firms to international companies. For a fee, they provide financial planning and investment advice, as well as tax planning and preparation. Some also sell securities. They charge fees for their services.
