What Does an Investment Advisor Do?

Most people who are planning for their financial future understand that maximizing wealth takes more than just smart saving; it requires investing in various sources, too. With so many investment options to choose from–stocks, bonds, mutual funds, index funds, and exchange-traded funds, to name a few–understanding where money should be invested, how much money should be invested, and how to help money grow over time can be confusing, if not overwhelming. As such, many people benefit from hiring an investment advisor, who can guide and counsel them throughout the investment process.

What Is an Investment Advisor?

As defined by Investopedia[1], an investment advisor is a person or a group that offers investment advice and recommendations, or/and conducts securities analysis, in return for a fee from the client.  Sometimes, an investment advisor is referred to as a Registered Investment Advisor or RIA. An RIA is an investment advisor who has enough assets to be registered with the Securities and Exchange Commission (SEC). You may also encounter the term IAR, or Investment Advisor Representative. The primary responsibility of an IAR, much like an RIA, is to provide investment advice; however, IAR can only provide advice on subject areas for which they have passed relevant examinations. Further, they must be registered with a registered RIA firm, as well as state authorities.

What Will My Investment Advisor Do for Me?

Before you hire an investment advisor for financial representation, it’s important that you have an honest conversation with them about their services. This is because investment advisors often offer different services – some may take a more holistic approach, considering all elements of your financial picture before putting together an investment plan; others may focus more narrowly on specific types of investments. That being said, some ways that your investment advisor will represent you include:

• Making recommendations about different securities;
• Managing your investment accounts;
• Explaining risks associated with various investment types;
• Offering information about return rates;
• Explaining to you the tax consequences of your investments;
• Explaining the difference between actively managed funds and index funds;
• Offering insight about different retirement savings investments; and
• More.

Meet with Our Investment Advisor Representatives Today

If you have questions about investments and the various investment strategies that may be relevant to you, don’t hesitate to schedule a consultation with an Investment Advisor Representative from Harvest Wealth Partners. Our Investment Advisor Representatives and Certified Financial Planners™ are ready to help you put a plan in place to preserve your best financial interests. Call us today, send us an email, or contact us online to get started.

[1]Kagan, Julia. “Investment Advisor” June 22, 2018.  https://www.investopedia.com/terms/i/investmentadvisor.asp

*This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal, or investment advice. If you are seeking investment advice specific to your needs, such advice services must be obtained on your own separate from this educational material.