Four Types Of Financial Professionals That Can Help You Get Ahead


Planning for your future and making money to pave your way through retirement may seem like the same thing, but really, it is not. Advisors, planners and brokers are not interchangeable. You will need to know the difference, know who you need to hire and when to make your family's dreams of college tuition, emergency funds and retirement a reality.

Financial Advisors

The only financial service advisors give is advising. When you want to know if you should invest in a financial product or round out your financial portfolio, an advisor is the person from which you want help and advice. They advise you on how to make extra money for short term (one to five years) and long-term (ten to fifty years) wants and needs. They do not suggest specific companies or products, nor will they sell you financial products. If you want to buy a stock or invest in an education IRA for your kids, you ask a financial advisor if it is a good idea.

Financial Planners

This is another type of financial service altogether. A financial planner helps you budget, plan ahead for major expenses, create a financial emergency plan, plan for your children's college funds and plan for your retirement. It is a service, like financial advising, and there are no financial investments or products involved. Financial planners help you make several short term and long-term goals that you need to stick to if you plan to have exactly the kind of financial future you expect.

Investment Brokers

Investment brokers make money by selling you investments and moneymaking opportunities. They cannot really advise you how or when to invest, only suggest what would be a good annuity, bond, CD or IRA in which to invest. Their job is to sell you several financial products and help you build an investment portfolio. Although they want you to make money because then they make money, they probably will not help you over the long haul and cannot really help you plan for any part of your family's future.

Stock Brokers

This is as straightforward as it gets. A stockbroker only sells stocks. He or she will advise you about the stocks and in which ones you should invest. It is his or her job to know which stocks will gain money for both you and him/her. Ergo, there is some advisement involved here, but again, it has nothing to do with your financial future, only long-term monetary gain.

Making an Appointment: Who to See First

Now that you have a better understanding about brokers, planners and advisors, you can make an appointment. The first fiscal specialist you should meet with is a planner. The first step toward financial freedom is establishing goals and knowing what you want to accomplish. The next person to see is an advisor, who will tell you how you can make your money grow and advise you in what financial products are best suited to your expectations and goals. Finally, visit with an investment broker and/or a stockbroker to buy products that will increase your net worth and ensure a sound financial future for you, your children and the years beyond.


10 March 2015

Learning How To Manage Finances

I still remember the day that my wife and I bought our first home. We were excited about filling the place with new furniture and looking for great area rugs. Unfortunately, before we knew it, we found ourselves deeply in debt. It was difficult to dig our way out, but over the course of the next several years, we were able to make things right. I want to teach other people how to manage finances so that they can avoid the turmoil that we went through. Financial planning might seem impossible, but with a little practice, I know it can become second-nature.