There are many different types of financial advisors. The field isn’t limited to one type or another because there are various types of financial situations a person can get into: student loans, credit card debt, retirement planning, et cetera. If you find yourself having issues with your money, it could be wise to reach out to an expert to help get yourself back on track. Here are just four of the types of financial advisors you can consult.
Customer Service Representative
Customer service representatives will likely be the most common financial advisor you come across when contacting the institution you have an account with or a loan from. These people usually help with one-time decisions, like choosing a credit card, and can help with comparing loan and mortgage options. They can also advise you on short-term investments like savings bonds and GICs. There’s no direct cost to speaking with a customer service representative; the cost for their advice and services is already built into the service fees you pay the institution or the cost of your investment.
Customer service representatives are great, but keep in mind that they’ll only recommend products and services sold by the institution they work for.
Personal Banker
Personal bankers, who work for banks and trust companies, are trained to sell investments like savings bonds and GICs—sometimes they’ll even be registered to see mutual funds. They’re the financial advisor to contact for any of the previously mentioned investments bought from the institution they work for. You won’t have to pay them directly either, since the cost of personal bankers is built into service fees or the cost of your investment.
Investment Advisor
Investment advisors are advisors who manage your investments for you. They can also provide investment advice on any type of security. You can typically get in contact with an investment advisor by looking for the term “portfolio manager” at any financial firm, whether independent or owned by a bank. Keep in mind that some investment advisors will only work with clients who have a minimum of $250,000 to invest.
Unlike the previous two advisors, investment advisors can be paid directly through a flat fee. Some will instead charge you an annual fee, depending on the size of your investment portfolio.
Insurance Advisor
Insurance advisors are people who are trained and licensed to give advice on and sell insurance to those who need it. Some insurance advisors are specialized in certain types of insurance, like life insurance or property insurance. Others are more general, selling a wide variety of products. Depending on the advisor, you could potentially buy investments from insurance advisors as well.
Insurance advisors are normally paid by the companies they sell the products of, making money each time they sell a policy. The cost of this is built into your insurance payments.