Financial Advisors

Financial advisors provide investment knowledge and sophisticated services that help you achieve your financial goals.   Whereas planners develop plans, financial advisors produce strategies that implement the investment provisions of the plans.   For example, financial advisors help you develop an investment strategy that reconciles your tolerance for risk and rate of return expectation.    Financial advisors help you diversify your assets to minimize the risk of large losses.   Financial advisors help you select money managers who invest your assets in the global securities markets. Financial advisors provide quarterly performance reports that document the results of the money managers.   And, financial advisors meet with you to discuss your results, adjust your strategy, answer  questions, and address concerns.

Some financial advisors make decisions on behalf of investors - for example, they initiate the purchase and sale of mutual funds without obtaining your approval in advance.   These professionals are referred to as discretionary financial advisors or money managers.   Other financial advisors will not make decisions for their clients - they provide advice, but it is up to you to make the final decisions.   These professionals are referred to as non-discretionary financial advisors or financial consultants.