Definition of a Financial Advisor

Financial advisors are trained professionals with broad mastery of diverse finance-related topics, ranging from insurance issues to tax laws. They must possess a solid education and superior people skills to perform effectively.

Function

Financial advisors strive to improve or protect their clients' economic health through a combination of financial planning and investment-strategy recommendations. Advisors often sell financial products like insurance on commission also.

Education

Financial advisors must have an aptitude for math and a minimum of a bachelor's degree, preferably with a relevant major, such as finance, accounting or economics.

Licensing

Financial advisors who provide advice about securities or who function as an official representative of a securities company will require a Series 7, Series 63 or Series 66 license issued by the Financial Industry Regulatory Authority.

Certification

While certification isn't mandatory, obtaining Certified Financial Planner (CFP) status from the Certified Financial Planner Board of Standards demonstrates an advisor has a passing score on the CFP examination, a bachelor's degree, at least three years of appropriate experience and a strong sense of professional ethics.

Social Skills

Because their job involves counseling clients, explaining complex information and often recruiting new clients, financial analysts must be customer-oriented and competent interacting with people.

Resources

• Certified Financial Planner Board of Standards Inc.
• Financial Industry Regulatory Authority