Financial advisor

What do Financial Advisors do?

Posted by MoneyController on 05.02.2021

Financial Advisors can help you a lot if you’re having money troubles or looking for guidance on where and how to invest your earnings and reach your savings goals. In this article we’ll lay out the added value of having a financial advisor.

What does a Financial Advisor do?

Financial advisors offer assistance that allows you to control and manage your finances more efficiently. They will evaluate your financial situation and identify areas for improvement. In some instances, they can completely manage all your finances. They provide a variety of services and take on different roles: Investment managers, financial planners or consultants, etc. Here you have the various types and typical services they offer. 


Robo-advisors are digital investment managers that deploy computer algorithms to set up and manage an investment portfolio for you. They are usually affordable and are very useful if you plan to save for retirement or you want to benefit from the stock market. They will help you invest money for future financial goals and they usually present a low-entry cost, with no minimums. Companies that run robo-advisors usually give you a questionnaire that will help them you identify your goals. Using the information you’ve provided, they’ll recommend investments and provide various financial management services for you.

Online financial planning services

Online planning services offer investment management along with virtual financial planning. They are a bit more expensive than robo-advisors but cheaper than traditional ones. You can work with them via phone or video call, and you will receive a personalized financial plan. Some will charge flat fees for the kind of advice you want, and others will offer special planning sessions for a custom price. They’re a kind of hybrid: they combine algorithms from robo-advisors with the input of a human team of experts to handle your finances and show you the best options. 

Traditional, in-person financial advisors

These could be stockbrokers, wealth managers, investment advisors and many more. They usually cost more than the previous two, and they will also have a much higher entry cost (up to £250, 000 in some cases). They will provide you with personalized and holistic financial advice regarding major life changes (buying a house, saving for a vacation, family planning, etc.). They will give you financial advice that robo-advisors cannot provide due to the complexity of the situation and you get to meet them in person at a local office – maybe even enjoy a coffee!

Should you get a Financial Advisor?

It depends entirely on your situation and goals, and on your style, expectations and budget. If you’re having difficulties in prioritizing your expenses or saving money, you may want to consider engaging a financial advisor. If you want to deal with more complex issues such as taxes, debts or estate planning, they can help you navigate these topics while telling you the best investment options. Just remember, they come with a fee, so if you are a novice with limited money, you might want to consider starting out with a robo-advisor to see how it works for you. On the other hand, if you have deeper pockets and more complex concerns, you may consider online trading services or retaining a traditional advisor.



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