What Is a Financial Advisor?

A financial advisor is essentially a hired expert who provides guidance on how to manage your personal finances. In order to offer services, financial advisors have to take the Uniform Investment Adviser Law Examination, register with the North American Securities Administration Association (NASAA), and carry a Series 65 license.

What does a financial advisor do?

"Financial advisor" is an umbrella term used to describe various types of professionals and experts. But, what all advisors have in common is that they provide financial advice and guidance.

Financial advisors offer a variety of services, ranging from investment advice and estate planning to tax support and help with insurance.

What is a financial planner?

A financial planner is one of many types of financial advisors. They specialize in helping individuals and businesses meet their short and long-term monetary goals.

Some financial planners have a more diverse range of expertise, while others focus on one or two specialties. This includes income taxes, investing, retirement planning, asset allocation, business coaching, corporate consulting, and risk management.

Do you need a financial advisor?

If you're like lots of other people, you might be wondering if hiring a financial advisor is worth it since spending money on their expertise might seem counterintuitive when your ultimate goal is to increase your wealth. While it’s true that financial advisors aren't for everyone, they're a worthwhile investment in some cases.

You might need a financial advisor if:

You're too busy to manage your finances
Your personal finances are disorganized
You feel stressed when making decisions about money
You feel overwhelmed or lost when researching financial topics
You're unsure how to navigate a life-changing financial decision
You recently inherited a large sum of money and don't know what to do with it

We should also note that hiring a financial advisor doesn't necessarily mean it'll be a long-term partnership either. Some people seek advice before making a big decision or until they feel like they can manage their finances on their own.

How to find a financial advisor

Upon deciding that hiring a financial advisor will reduce stress, increase your wealth, or otherwise benefit your situation, you can start looking for a professional.

The National Association of Personal Financial Advisors has an online directory that allows you to search for advisors based on your location. The Alliance of Comprehensive Planners has a great search tool as well. You can filter by location, virtual services, and different specialties. You can also reach out to your local bank or credit union like CCCU for assistance.

Financial support from our Portland community credit union

CCCU is here to help people from all walks of life achieve financial wellness. In addition to personal banking accounts, members can take advantage of high-yield savings plans, low-interest lending options, and flexible mortgage tools, plus investment advice and wealth management services through registered advisors and brokers.

Our Portland-based credit union serves members who live, work, worship, or attend school in Multnomah, Clackamas, Washington, Yamhill, Columbia, Clark, Hood River, and Skamania counties. With branches in Portland and Hood River and nationwide ATM access, we offer a range of convenient ways to access your accounts.

Join CCCU today or contact us with questions.