By Kimberly Green, cofounder of Sam’s List
If you’ve ever typed“what is a financial advisor?”into Google and felt overwhelmed by jargon or vague answers, you’re in the right place. Think of a financial advisor as yourpersonal financial coach— someone who helps you understand your money, your goals, and the actionable steps to get you there.
AtSam’s List, we help people find trusted financial professionals and demystify complex financial topics — starting with what a financial advisoractuallydoes and how to choose one wisely.
What Does a Financial Advisor Do? (Plain-English Breakdown)
Afinancial advisorhelps you manage your money, plan for the future, and avoid costly mistakes. They assess your situation, clarify your goals, and help you make smarter decisions across your finances.
Services Often Include:
Goal setting & financial strategy
Budgeting & debt management
Ongoing emotional support during market shifts
How Financial Advisors Actually Spend Their Time
According toNatixis’ 2024 Global Survey of Financial Advisors, here’s how advisors spend their time:
| Task | % of Time |
|---|---|
| Client Meetings | 23% |
| Managing Client Relationships | 20% |
| Managing Investments | 16% |
| Admin Work | 10% |
| Prospecting | 9% |
| Compliance | 8% |
| Investment Research | 5% |
| Marketing | 5% |
| Trend Watching | 4% |
🧠What this means for you: Proactive advisors spend the majority of their time onyou, not just the markets.
Types of Financial Advisors
Not all "financial planners" are created equal. The title can mean different things depending on training, licensing, and services offered.
| Title | What They Do | Certifications/Licenses |
|---|---|---|
| CFP® (Certified Financial Planner) | Creates holistic plans — goals, insurance, retirement, estate | CFP® |
| CPA | Offers tax-focused planning and financial advice | CPA + possibly PFS |
| CFA® | Specializes in investments and portfolio strategy | CFA® |
| Credit Counselor | Helps manage debt and credit | NFCC or similar |
| Insurance Agent | Sells insurance and annuity products | State license + Series 6/63 |
| Retirement Advisor | Plans retirement income strategy | CFP®, RICP |
| Wealth Manager | Serves high-net-worth clients with complex needs | CFP®, CFA®, Series 65/66 |
👉 UseSam’s Listto filter by advisor type, services, and specialties.
Benefits of Hiring a Financial Advisor
Is it worth it?For many, yes — especially if you want clarity, accountability, and confidence in your financial decisions.
🎯 Planning & Goal-Setting
Personalized long-term strategy
Goal prioritization (home, retirement, education)
Financial literacy & education
📈 Investment & Discipline
Rational guidance during market volatility
Avoid emotion-driven mistakes
Portfolio adjustments as life evolves
🧠 Expert Guidance
Coordinate tax planning withCPAs
Navigate estate & legacy strategies
Tackle debt with clarity
🙌 Support & Accountability
Objective perspective on big decisions
Help staying on track
Save time by managing the heavy lifting
Adapt plans with life changes
“Being a good advisor is about connecting with people, helping them solve their problems, and making life simpler — it’s not all about spreadsheets.”
—Peter Lazaroff, CIO, Plancorp
“Good conversations with clients reveal their values. Those values should guide how every dollar gets used.”
—Stephanie McCullough, Sofia Financial
What Is a Fiduciary Financial Advisor?
Afiduciaryis legally required to put your interests ahead of their own. This is the highest standard in financial advice.
What That Means for You:
Loyalty & Care: Must act in your best interest
Conflict Avoidance: Avoid or disclose financial conflicts
Transparent Fees: No hidden commissions
Legal Accountability: Bound by law (e.g., Investment Advisers Act of 1940)
✅ Always ask:Are you a fiduciary?And request it in writing.
How Financial Advisors Are Paid
Understanding fee structures helps you avoid conflicts of interest and choose an advisor whose incentives align with yours.
| Fee Type | How It Works | Pros |
|---|---|---|
| AUM (Assets Under Mgmt) | % of assets (0.25% to 1%) | Aligned with your growth |
| Flat Fee | Fixed cost (monthly or annually) | Predictable costs |
| Hourly | Charged per hour ($150–$400+) | Great for project advice |
| One-Time Project | Flat rate for a custom plan | No commitment |
| Commission-Based | Paid by selling products | Watch for conflicts |
Tip:Fee-only fiduciaries typically offer the most unbiased advice.
How to Choose a Financial Advisor (5-Step Checklist)
Clarify Your Goals
Know if you need help with investing, budgeting, retirement, or all of the above.Choose the Right Type
Use the chart above to match services to titles (e.g.,CFP® for holistic planning).Verify Credentials
Use tools likeFINRA’s BrokerCheckor theSEC’s IAPD.Understand the Fee Model
Ask if they’re commission-free and fiduciary.Schedule Interviews
Most advisors offer free consultations. Come with questions about approach, fees, and fit.
👉Find a vetted advisor now on Sam’s List →
TL;DR Summary
A financial advisor aligns your money with your values and life goals.
Fiduciaries are held to the highest ethical standard.
Choose based on goals, service model, credentials, and fee structure.
Sam’s List makes finding the right advisor simple and trustworthy.
Ready to Take the Next Step?
Whether you're planning for retirement, managing your investments, or just want to feel more confident about your money — now is the time to take control.
👉Start your advisor search today →Explore Financial Advisors on Sam’s List
