Financial Advisor
Financial Advisors guide people in managing money, savings, and investments to reach financial goals.
What does a Financial Advisor do?
Financial advisors help individuals achieve long-term financial goals by creating personalized plans covering investments, retirement, estate planning, and taxes. They assess income, assets, and risk tolerance to guide decisions.
Some specialize in high-net-worth clients, focusing on wealth preservation and legacy planning across generations through tailored financial strategies.
Key skills
- Communication
- Analytical and quantitative
- Attention to detail
- Creative thinking
Different types of Financial Advisors
Independent financial advisors
- Operate independently and offer a wide range of products from multiple providers
- Typically fee-based or fee-only
Broker-dealers
- Work for large brokerage firms and may offer proprietary products and services
- Often compensated through a mix of salary, commission and bonuses
Bank-based advisors
- Focus on clients with banking relationships and may offer bundled financial services
Insurance-based advisors
- Affiliated with insurance companies and often specialize in annuities, life insurance, and estate planning
- May be compensated through commissions
Wealth advisor
- Often provide bespoke investment solutions for high-worth-clients and may work on a discretionary or advisory basis
Becoming a Financial Analyst
Qualifications
In developed markets, Financial Advisors require a license or need to register with the regulator. Useful qualifications include:
- Chartered Financial Analyst®
- Certified Financial Planner
- Certified Public Accountant and other accounting credentials
Who hires a Financial Analyst?
Financial Advisors may join a firm or establish an independent practice. Wealth management units of banks and insurance companies also employ Financial Advisors.
Check out a typical job description
As a Financial Advisor, you will guide individuals in managing their:
- Savings
- Investments
- Retirement planning
- Insurance, estate and tax strategies
You may also support them in other aspects of their financial future.
Strong portfolio construction and analytical skills are essential. Also important is the ability to communicate regularly with clients to understand their goals, share investment ideas, provide updates, and deliver clear financial reports.
Staying informed about market developments, investment strategies, and regulatory changes enables you to offer timely, high-quality advice.
You may also be expected to meet performance or sales targets set by your firm.
Above all, earning and maintaining client trust is fundamental. Consistently upholding your fiduciary duty to act in their best interest is key to building a strong professional reputation.
Now let’s talk career progression
Where this role could take you
Your ability to nurture client relationships and bring in new clients will be key to progression. Financial Advisors may later find themselves leading teams of advisors in a particular market or specialization. You may also be promoted to management roles or transition to specialized roles.
Your future
Career advancement may include becoming a Senior Financial Advisor handling high-net-worth or complex client relationships. You may also mentor junior advisors and lead client strategy. You could also become a Partner / Principal / Managing Director of a firm, focusing on strategic growth and governance.
The right role for you?
While being a Financial Advisor can be rewarding, it comes with challenges. Income may be unpredictable for commission-based roles and meeting sales targets may be part of the job.
The role also demands staying current with regulations and managing emotionally charged client situations, particularly during market downturns.
High competition, continuous learning, and the need to retain clients through strong relationships are all part of the reality of building a successful advisory career.
Find your fit in finance
Have you checked out our quiz yet? Discover which finance career paths align with your passions, strengths, and values.