Investment Advisor Investment advisors are a critical
resource for anyone planning his or her financial future. Since
most people do not possess the time or knowledge to manage all
aspects of their financial life, an investment advisor can be
critical to determining appropriate investments and managing
portfolios. There are many kinds of investment advisors who
utilize many related designations, so it is important to take a
measured approach to finding the right investment advisor for
you. Retirement Plan A retirement plan involves an assessment of
an individual's retirement needs and developing an appropriate
plan. In general, a retirement plan will require an individual to
forecast benefits to be received, determine costs to be incurred
during retirement years and define the lifestyle that he or she
would like to enjoy. Many financial advisors have expertise with
respect to creating a retirement plan, particularly as they
relate to 401(k) plans, IRAs and annuities. Personal Financial
Planning Personal financial planning is useful for individuals to
organize the various aspects of their finances. Typically, anyone
with questions or concerns regarding investments, estate
planning, retirement planning, tax reduction, education planning,
or insurance could benefit from personal financial planning.
Personal financial planning may include: retirement and cash-flow
goals, "what if" scenarios based on different circumstances, a
strategy for financing education, and a realistic plan for
achieving these objectives. Contact a financial advisor for
assistance with personal financial planning. Investment
Management Investment management is a broad field consisting, in
part, of the selection and maintenance of an investment
portfolio. In this regard, there are various styles of investment
management, including: value, contrarian, market timing,
fundamental analysis, and indexing. Each of these styles has been
employed by investment management firms with varying levels of
success. Consult your financial advisor for assistance in
determining your investment management objectives. Registered
Investment Advisor A registered investment advisor is someone who
is registered with a state or the SEC to provide individually
tailored advice to clients about securities (such as stocks,
bonds, or mutual funds) and to receive compensation for this
service. Some registered investment advisors also manage
portfolios of securities for their clients. Registered investment
advisors are governed by the Investment Advisors Act of 1940 and
the rules adopted under that statute. Financial Planner A
financial planner is an investment professional that helps
individuals set and achieve their long-term financial goals,
through investments, tax planning, asset allocation, risk
management, retirement planning, and estate planning. Financial
planners use the entire financial picture of an individual or
family to create a financial plan or blueprint. This financial
plan may be carried out by the individual, a stockbroker, a
financial advisor or even the financial planner him/her self.
Investment Broker An investment broker is an investment
professional who deals with transactions (buy or sell) involving
any investment instruments. Investment brokers are similar to
stockbrokers in that they are generally not expected to provide
financial advice, but they are expected to execute trades in
these instruments on behalf of their clients. Unlike
stockbrokers, investment brokers may deal with a large variety of
investment instruments including private partnership shares,
bonds, mutual funds, derivative instruments and other complex and
varied investments. Financial Adviser Financial advisers provide
guidance on all aspects of your financial life, including
investments, estate planning, tax preparation and planning,
retirement planning and insurance. Some financial advisers
acquire one or more professional designations, indicating that
they have satisfied certain educational and experience
requirements. Examples of financial adviser designations include:
Chartered Financial Analysts (CFA), Certified Financial Planners
(CFP), Chartered Financial Consultants (ChFC), and Certified
Investment Management Analysts (CIMA). Certified Financial
Planner A Certified Financial Planner ™ is an individual
who has been awarded this designation by the Certified Financial
Planner Board of Standards (CFP Board). This designation
signifies planners who are committed to competent and ethical
behavior when providing financial planning services. Certified
Financial Planner practitioners have taken the extra step to
demonstrate their professionalism by voluntarily submitting to
the rigorous certification process. In addition to significant
education and experience requirements, they must pass a
comprehensive exam that tests their personal financial planning
knowledge and skills, continually update their abilities and
abide by the Certified Finanical Planner Board's Code of Ethics
and Professional Responsibility (Code of Ethics) and Financial
Planning Practice Standards (Practice Standards). CFPs can work
in several settings including small financial planning practices,
large financial services firms, credit unions, banks and other
financial institutions. Planners are compensated for the services
they provide in different ways, as well. Some are paid through
commissions, and others through fees or a combination of both.
Financial Consultant Financial consultants provide guidance on
all aspects of your financial life, including investments, estate
planning, tax preparation and planning, retirement planning and
insurance. Some financial consultants acquire one or more
professional designations, indicating that they have satisfied
certain educational and experience requirements. Examples of
financial consultant designations include: Chartered Financial
Analysts (CFA), Certified Financial Planners (CFP), Chartered
Financial Consultants (ChFC), and Certified Investment Management
Analysts (CIMA). Consultants may operate exactly as Financial
Advisors, or they may operate exactly as Financial Planners, or
they may provide some planning work and some advisory work, thus
operating in-between. CFP ™ A CFP, is an individual who has
been awarded this designation by the Certified Financial Planner
Board of Standards (CFP Board). This designation signifies
planners who are committed to competent and ethical behavior when
providing financial planning services. CFP practitioners have
taken the extra step to demonstrate their professionalism by
voluntarily submitting to the rigorous certification process. In
addition to significant education and experience requirements,
they must pass a comprehensive exam that tests their personal
financial planning knowledge and skills, continually update their
abilities and abide by the CFP Board's Code of Ethics and
Professional Responsibility (Code of Ethics) and Financial
Planning Practice Standards (Practice Standards). Certified
Financial Planners can work in several settings including small
financial planning practices, large financial services firms,
credit unions, banks and other financial institutions. Planners
are compensated for the services they provide in different ways,
as well. Some are paid through commissions, and others through
fees or a combination of both. Financial Consulting Financial
consulting is typically carried out by a financial consultant,
advisor or planner who will organize the various aspects of an
individual's finances. Typically, anyone with questions or
concerns regarding investments, estate planning, retirement
planning, tax reduction, education planning, or insurance could
benefit from financial consulting. Financial consulting may
include: retirement and cash-flow goals, "what if" scenarios
based on different circumstances, a strategy for financing
education, and a realistic plan for achieving these objectives.
Contact a financial advisor, consultant or planner for assistance
with financial consulting. Fee Only Investment Advisor Fee only
investment advisors provide consumers and institutions with
comprehensive and objective financial advice on a "fee-only"
basis, keeping only the best interests of the client in mind.
Neither the fee only financial advisor nor any related party
receives compensation contingent on the purchase or sale of any
financial product (commission.) Fee only financial advisors may
be paid their fees based on a percentage of the assets they
manage for their clients, or they may be paid on an hourly basis,
or a flat fee.
For more information about Retirement
Information, please click on the link title below:
If you need more information about registered investment
advisor, you will find a very informative website at InvestorTree.
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