"Financial advisors" is a broad label. It can describe someone who manages investments, someone who sells insurance, someone who builds retirement plans, or someone who coordinates an entire family's financial life. Because the term covers so much, it can be hard to know who you are actually talking to and what kind of help you will get.
This guide breaks down the main types of financial advisors, the services they commonly offer, how they are paid, and a simple process for choosing one.
Why the Term "Financial Advisor" Can Be Confusing
There is no single license called "financial advisor." People with very different roles, registrations, and business models may all use the title. That is why it helps to look past the title and ask what the person does, how they are registered, and how they are paid.
Two Common Registrations
Registered investment advisers (RIAs): Firms registered with the SEC or a state that provide investment advice, generally for a fee. Investment advisers owe a fiduciary duty to their advisory clients under federal law.
Broker-dealer representatives: Professionals registered to buy and sell securities, often paid through commissions. They are generally subject to a best interest standard when making recommendations to retail customers.
Some professionals are registered in both roles. You can look up registration and history through the SEC's Investment Adviser Public Disclosure website and FINRA BrokerCheck.
Types of Financial Advisors You May Meet
Understanding the types of financial advisors may help you match the right professional to your needs.
Financial Planners
Financial planners focus on building a plan around goals like retirement, education, and cash flow. Some hold credentials such as the CERTIFIED FINANCIAL PLANNER® designation.
Investment Advisors and Portfolio Managers
These professionals focus on building and managing investment portfolios based on your goals and comfort with risk.
Wealth Advisors
Wealth advisors usually take a broad view that connects investments with retirement, tax considerations, estate planning goals, and family priorities. They often coordinate with your CPA and attorney.
Insurance Agents
Insurance agents focus on products such as life, disability, and long term care insurance. Some also offer annuities.
Digital or Robo Advisors
Online platforms that build and manage portfolios using algorithms, often with limited personal advice.
What Services Do Financial Advisors Offer?
Services vary widely by advisor and firm. Here are some of the most common.
Investment management: Building, monitoring, and rebalancing a portfolio.
Retirement planning: Projecting how savings and income sources may support retirement.
Tax-aware planning: Considering the tax side of decisions, typically alongside a CPA.
Estate planning coordination: Reviewing beneficiaries and account structure with your attorney.
Business owner services: Company retirement plans and planning that connects business and personal goals.
Trust support: Help for trustees and beneficiaries with trust administration.
Ask any advisor which of these are included in their service and which are not.
How Financial Advisors Are Paid
Compensation affects how an advisor works with you, so it is worth understanding.
Common Compensation Models
Asset-based fees: A percentage of the assets the advisor manages.
Flat or retainer fees: A set fee for planning or ongoing service.
Hourly fees: Payment for time spent on a specific project.
Commissions: Payment from the sale of a financial product.
Fee-Only vs. Fee-Based
"Fee-only" generally means the advisor is paid only by clients and not through commissions. "Fee-based" often means a mix of fees and commissions. Each firm's Form CRS describes how it is paid and what conflicts of interest may exist.
How to Choose a Financial Advisor: A Simple Process
Choosing a financial advisor does not have to be overwhelming. Here is a step by step approach.
Step 1: Define What You Need
Write down what you want help with. Is it investments only, retirement income, a business, an inheritance, or the whole picture?
Step 2: Check Registration and Background
Use the SEC and FINRA lookup tools to confirm registration and review any disclosures.
Step 3: Read the Form CRS
The Form CRS is a short document that summarizes services, fees, conflicts, and disciplinary history.
Step 4: Ask About Coordination
If you already have a CPA and attorney, ask how the advisor will work with them.
Step 5: Meet and Compare
Meet with a few advisors. Notice whether they ask about your goals and family before talking about products.
For a local example of how planning and investment management can come together, read about wealth management and financial planning in Mansfield, Ohio.
How Pinnacle Advisors Works With Clients
Pinnacle Advisors is an SEC registered investment adviser located in Mansfield, Ohio. The firm describes itself as "a family-owned and operated Wealth Management firm that has been dedicated to shaping the financial success stories of individuals and families." You can review its Form CRS and ADV on its website.
Services in One Place
Pinnacle offers Wealth Management Programs, the Wealth Scorecard® for real-time monitoring for real-life goals, trust management services, and retirement plans for small business owners. Through its Wealth Collaboration™ programs, Pinnacle brings your CPA and attorney to the table to provide holistic planning.
Who Pinnacle Advisors Serves and Where
Pinnacle works exclusively with individuals, business owners, and their families. The firm serves clients in Ohio, Florida, and across the nation, with its headquarters in Mansfield, Ohio, and offices in Mentor, Medina, and Columbus, Ohio; Sarasota/Bradenton and Tierra Verde, Florida; and Manhattan, Kansas.
Start the Conversation
Choosing among financial advisors is easier after a real conversation. You can Schedule a Call, request a Free Assessment, or Download our eBook. Your needs lead the way. Start your snapshot.
Frequently Asked Questions
What are the different types of financial advisors?
Common types include financial planners, investment advisors, wealth advisors, insurance agents, broker-dealer representatives, and digital or robo advisors. Each focuses on different services.
How do I check if a financial advisor is legitimate?
You can look up registration and disclosures on the SEC's Investment Adviser Public Disclosure website and on FINRA BrokerCheck, and you can ask for the firm's Form CRS.
What is a fiduciary financial advisor?
A fiduciary is required to act in the client's best interest. Registered investment advisers owe a fiduciary duty to their advisory clients under federal law.
How much do financial advisors charge?
It varies. Advisors may charge a percentage of assets, flat fees, hourly fees, or commissions. The Form CRS explains how a firm is paid.
What questions should I ask a financial advisor before hiring?
Ask about registration, services included, fees, conflicts of interest, how often you will meet, and how they work with your CPA and attorney.
Is a financial advisor worth it?
That depends on your needs. Many people value help organizing their finances, planning for retirement, and coordinating decisions across advisors. Consider what you want help with before deciding.
This article is for educational and informational purposes only and should not be construed as personalized investment, legal, accounting, or tax advice. Pinnacle Advisors is an SEC registered investment adviser located in Mansfield, Ohio. The Company is neither an attorney nor an accountant, and no portion of this content should be interpreted as legal, accounting or tax advice. It should not be assumed that future performance of any specific investment or investment strategy or any planning or consulting services will be profitable, equal any historical performance level(s), or prove successful if Pinnacle is engaged. Investing involves risk, including the possible loss of principal, and there are no guarantees that any strategy will achieve its objectives. Please review the Important Disclosure Information and Form CRS available on the Company's website.
IMPORTANT DISCLOSURE INFORMATION
Please remember that past performance is no guarantee of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Pinnacle Advisors [“Pinnacle”]), or any non-investment related content, made reference to directly or indirectly in this blog will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this blog serves as the receipt of, or as a substitute for, personalized investment advice from Pinnacle. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. No amount of prior experience or success should be construed that a certain level of results or satisfaction will be achieved if Pinnacle is engaged, or continues to be engaged, to provide investment advisory services. Pinnacle is neither a law firm nor a certified public accounting firm and no portion of the blog content should be construed as legal or accounting advice. A copy of the Pinnacle’s current written disclosure Brochure discussing our advisory services and fees is available for review upon request or at www.pinnacleadvisors.com. Please Note: Pinnacle does not make any representations or warranties as to the accuracy, timeliness, suitability, completeness, or relevance of any information prepared by any unaffiliated third party, whether linked to Pinnacle’s web site or blog or incorporated herein, and takes no responsibility for any such content. All such information is provided solely for convenience purposes only and all users thereof should be guided accordingly. Please Remember: If you are a Pinnacle client, please contact Pinnacle, in writing, if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services, or if you would like to impose, add, or to modify any reasonable restrictions to our investment advisory services. Unless, and until, you notify us, in writing, to the contrary, we shall continue to provide services as we do currently. Please Also Remember to advise us if you have not been receiving account statements (at least quarterly) from the account custodian.
Financial advisor Ohio, financial advisor Florida, financial planner Ohio, financial planner Florida, wealth management Ohio, wealth management Florida, financial coach Ohio, financial coach Florida, retirement planning Ohio, retirement planning Florida, investment planning Ohio, investment planning Florida, wealth planning Ohio, wealth planning Florida, financial expert Ohio, financial expert Florida, wealth strategist Ohio, wealth strategist Florida, wealth coordinator Ohio, wealth coordinator Florida, wealth planning specialist Ohio, wealth planning specialist Florida, investment planner Ohio, investment planner Florida, exit plan Ohio, exit plan Florida, trust services Ohio, trust services Florida, CFP Ohio, CFP Florida, money manager Ohio, money manger Florida, boutique wealth management Ohio, boutique wealth management Florida, boutique money manager Ohio, boutique money manager Florida
