The Role of an Investment Advisor Or Financial Planner

An investment advisor is a company which is an independent investment advisor in the United States, either registered with the Securities and Exchange Commission of a particular state or an independent securities agency of that state. The investment advisor may advise a private individual or a company to purchase an asset, to sell, or to invest in real estate, government, corporate, risk and insurance policies, derivatives, tax liens, or any other financial instrument. Some states have additional requirements regarding the advisor, for example, that he or she must be a registered investment advisor. In all states, however, the advisor must register with the appropriate regulatory agency and comply with applicable requirements. See page to get the best financial planner.

There are differences between financial planners and investment advisors. Financial planners are licensed by state law to practice before the boards of financial planners. They also receive extensive education, as well as continuing education during their careers to keep abreast of changes in the industry. They are required to complete a specific number of hours of continuing education every two years or they can be disciplined by their states' regulatory agencies. Learn more about the best financial planner here.

In contrast, investment advisors do not have to be licensed by state law or any regulatory agency. They work solely for the benefit of individual clients. They do not need to obtain licenses, or meet any continuing education requirements, to manage their clients' financial plans. In fact, some financial planners choose not to participate in any state laws regulating advisers because they believe such laws do not interfere with their ability to act in the best interests of their clients.

The types of investments, an investment advisor manages are primarily directed at providing growth capital, short-term assets, and long-term investments. Some of the types of investments include stocks, bonds, mutual funds, real estate property and raw land properties. As one would expect, the types of investments can vary greatly from the age of the investor or the overall financial objectives of the investor.

An investment advisor can either make investment recommendations to individual clients or they can buy and sell securities on their clients behalf. Investment advisors who buy securities on behalf of their clients are called direct sales agents and are not registered brokers. Brokers, on the other hand, are registered investment advisers. Direct sales agents make investment recommendations that are based on their personal investment preferences and strategies.

If you are considering getting an investment advisor to help you earn money, be sure you choose someone you feel comfortable with and someone who has a good track record. To learn more about choosing the right financial planner or advisor, talk to your local licensing board or check with the Better Business Bureau. You can also search for online reviews to help you determine which investment advisor, or financial planner, is best for you. Choosing the right investment advisor or financial planner is an important decision that will help you achieve your financial goals. Get more details about this topic here: https://en.wikipedia.org/wiki/Financial_planner.