financial advisor
A professional who provides guidance on investments, retirement, tax planning, and overall financial strategy.
Example
“Her financial advisor helped reallocate the portfolio after the market correction.”
Memory Tip
ADVISOR — a guide. But you still make the decisions.
Why It Matters
Financial advisors help individuals make informed decisions about complex financial matters that can significantly impact long-term wealth and security. Having professional guidance can prevent costly mistakes in investment selection, tax strategy, and retirement planning that could result in thousands of dollars in lost earnings or unnecessary tax burden over time.
Common Misconception
Many people believe that financial advisors only work with wealthy individuals or require minimum account balances of hundreds of thousands of dollars. In reality, many advisors work with middle-income families and some offer services through robo-advisors or group programs at lower cost thresholds.
In Practice
A 35-year-old earning 60000 dollars annually meets with a financial advisor who recommends increasing retirement contributions from 5 percent to 10 percent of salary and shifting investments into lower-cost index funds. Over 30 years until retirement, this adjustment could result in an additional 200000 to 300000 dollars in retirement savings due to compound growth and reduced fees.
Etymology
From Latin 'advisare' meaning to counsel — a counselor on financial matters.
Common Misspellings
Get a free financial plan from a real advisor
More in financial planning
Other financial planning terms you should know
See Also
Need help with spelling?
Instant spelling checker with dialect variants for 2,000+ words.