Tip:
Highlight text to annotate it
X
Have you ever wondered what, exactly, a financial advisor does? Or, more importantly, if you
should have one?
A financial advisor's job is precisely like it sounds -- they advise you on how to handle
your finances. They might help you do everything from pay down debts to buy insurance to save
for retirement.
There are lots of designations and certifications for financial advisors. Some are general financial
planners. Some are investment advisors. Some are retirement counselors or debt specialists.
Some may be licensed; others may not.
But they're all there to counsel you on how to handle your money.
So how do they get paid?
Some financial advisors earn a flat fee for meeting with you. Some collect a percentage
of your assets. And some earn commissions on the products or services that they help
you buy.
There's no right or wrong way for your advisor to be compensated. But if you decide to work
with one, feel free to ask. Don't be shy—a good advisor will be happy to explain.
If you're just getting started in the workforce, and your finances are pretty simple, you might
not need an advisor.
Just budget carefully, pay down debts, and save for a rainy day and retirement. There
are some free online tools that can help you manage your money.
That said, if you have access to a free financial advisor through your work, there's no harm
in meeting with one. If nothing else, you can get a second opinion on your money management
choices.
You might consider hiring one as your career progresses, your net worth grows, and you
start making other decisions that can affect your finances like getting married, having
children and buying a home. As your finances become more complex, a financial advisor can
help you navigate your many choices.