Financial adviser
From The Art and Popular Culture Encyclopedia
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A financial advisor is a professional who renders investment advice and financial planning services to individuals and businesses. Ideally, the financial advisor helps the client maintain the desired balance of investment income, capital gains, and acceptable level of risk by using proper asset allocation. Financial advisers use stock, bonds, mutual funds, real estate investment trusts (REITs), options, futures, notes and insurance products to meet the needs of their clients. Many financial advisers receive a commission payment for the various financial products that they broker, although "fee-based" planning is becoming increasingly popular in the financial services industry.
A further distinction should be made between "fee-based" and "fee-only" advisers. Fee-based advisers both charge fees and collect commissions. Fee-only advisors do not collect commissions, and thus do not face a conflict of interest created by commissions or referral fees paid by other product or service providers.
