What Is a Financial Advisor?

Exponent Investment Management financial advisor is a person who helps you make the big money decisions in your life, such as investing, estate planning, tax preparation and insurance selection. Some advisors also offer a wide range of services, such as philanthropy, mortgage lending and trust services. Others specialize in specific areas like retirement accounts, asset allocation or Social Security claiming strategies.

Your advisor will take the information you provide in a questionnaire and synthesize it into a financial strategy for your future that takes into account your goals, risk tolerance and time horizon. A well-written financial plan will be a roadmap for your future that you can review and adapt as needed.

Why You Need a Financial Advisor for Retirement Planning

Advisors can also help you avoid expensive mistakes, such as taking on more investment risk than you can tolerate or buying a bigger home than you need in retirement. They can also serve as a sounding board during market downturns, helping you stay focused on your long-term goals.

Many advisors are fiduciaries, meaning they must always act in your best interest. However, some work on commission and may steer you toward financial products that carry higher fees than other options available. When interviewing potential advisors, ask how they’re compensated and whether they hold a fiduciary or suitability standard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area and lets you schedule an introductory call to decide if they might be a good fit.