What Does A Financial Advisor Do?

You’ve worked hard your entire career—putting in the hours, saving diligently, and building a life you’re proud of.

Now, you’re nearing retirement or another significant life milestone. But there’s one big question on your mind: Am I doing enough to prepare for my future?

You feel overwhelmed by the sheer amount of financial decisions ahead of you.

• Do you need a will?
• Should you invest more in your 457(b) or open a Roth IRA?
• How do you balance your current expenses with saving for the future?

You know you need a strategy, but the options seem endless, and the jargon is confusing.

You’ve heard of financial advisors, but you’re not entirely sure what they do, or if their services are worth the investment. They sound great in theory, but how do you know they’ll actually help you achieve your financial goals?

The Experience 

As a financial advisor myself, I’ve seen this scenario play out countless times. It’s a problem I’ve personally faced as well—both as a young professional just starting my career and now as a financial advisor assisting others.

But it wasn’t just about making the right moves—it was about getting the right advice and support that aligned with my personal situation. And that’s where a financial advisor truly steps in.

What is a Financial Advisor?

At its core, a financial advisor is a professional who helps individuals manage their money and make informed decisions about their financial futures. They guide you through various financial decisions—whether it’s retirement planning, debt management, tax optimization, or investing.

What Does a Financial Advisor Do?

• Financial Planning: Financial advisors help you create a personalized financial plan based on your goals, time horizon, and current financial situation. They’ll assess your income, expenses, debt, and assets to create a strategy that makes sense for you.
• Investment Advice: Advisors can help you understand and manage your investments, whether you’re looking at stocks, bonds, mutual funds, or retirement accounts. They can also help you determine the right asset allocation (how you spread your investments across different types of assets) based on your risk tolerance and long-term goals.
• Retirement Planning: One of the most significant areas a financial advisor focuses on is retirement planning. They can help you maximize your retirement savings, choose the best accounts for your needs (like a 457(b), 401(k), or Roth IRA), and create a strategy for drawing down funds when you’re ready to retire.
• Tax Planning: Financial advisors can work with you to optimize your tax strategy. This might involve advising you on tax-advantaged accounts, helping you understand tax implications of investments, and reducing your tax burden by recommending strategies like tax-loss harvesting.
• Risk Management: A financial advisor can also recommend insurance solutions to protect your assets and income in case of unexpected events. This includes life insurance, health insurance, and disability insurance.

Next Steps?

How do you work with a financial advisor to ensure that your financial plan is structured for success?

 Assess Your Current Financial Situation

The first thing your financial advisor will do is assess where you currently stand. This includes reviewing your assets, liabilities, income, and expenses. Having a clear picture of where you are today will set the foundation for your financial plan.

Set Clear Goals & Finding Purpose 

Once your financial advisor has a clear understanding of your current situation, they’ll help you define your financial goals. Finding purpose is directly correlated with building a plan and setting reasonable goals. Without understanding the purpose of saving for retirement, it’s easy to stray away from the plan. These can include things like:

• Saving for retirement
• Paying off debt
• Purchasing a home
• Starting a business
• Funding your children’s education

Your advisor will work with you to prioritize these goals and create a timeline for achieving them.

Create a Comprehensive Financial Plan

Your financial advisor will then create a comprehensive financial plan. This plan will include:

• Investment strategies
• Retirement savings strategies
• Tax-saving strategies
• Legacy considerations

Implement the Plan

Now that you have a plan in place, your financial advisor will help you implement it. This might involve setting up the appropriate accounts (e.g., a 457(b) for retirement), making investment choices, and organizing your insurance coverage.

Ongoing Monitoring and Adjustments

Financial planning isn’t a one-time activity. Your advisor will continuously monitor your progress and adjust your plan as needed. Life changes, and so do your financial goals, so it’s important to have someone who can provide regular check-ins and make any necessary changes.

Long-Term Partnership

Working with a financial advisor is a long-term partnership. Your advisor will continue to help you adapt your plan as you approach different stages of life, whether that’s adjusting to retirement, managing healthcare costs, or addressing changes in your family’s financial needs.

What Now?

At the end of the day, working with a financial advisor is about getting clarity and confidence in your financial decisions. Advisors provide the expertise and guidance that helps you navigate the complexities of personal finance—whether you’re saving for retirement, dealing with debt, or looking for ways to invest more effectively. You can view the article here that breaks down the Value Of A Financial Advisor.

But many people shy away from financial advisors because they don’t fully understand what they do. They assume it’s a luxury or an unnecessary expense. But financial advisors don’t just make things easier—they make things smarter. Therefore, working with a financial advisor could very well be the key to achieving your financial goals faster and more effectively.

If you’re feeling overwhelmed or uncertain about your financial future, reaching out to a financial advisor could be your first step toward financial peace of mind.