A financial advisor’s role goes far beyond managing investment portfolios—though that’s central for most. These professionals serve as your personal financial guide, helping you navigate life’s major money decisions, from saving for retirement and funding education to managing debt and planning estates.

“The general public is very confused about what we do and who we serve. They are not aware of the many different service models that exist,” said Stephanie McCullough, a member of Investopedia’s Advisor Council and founder of Sofia Financial in Berwyn, Pennsylvania. “It’s still a common assumption that someone needs millions of dollars of investable assets in order to get the help of a financial advisor.”

That’s far from true, so whether you’re just starting to build a portfolio or managing complex investments, understanding what a good financial advisor does can help you find the one you need.

Key Takeaways

• Financial advisors help create comprehensive plans covering retirement, taxes, estate planning, insurance needs, and major life transitions.
• What you need from your advisor changes as your life and career do, from early portfolio building to retirement planning and estate arrangements.
• Financial advisors are paid through flat fees, hourly rates, commissions, or a percentage of assets under management (averaging about 1%).
• You don’t need to be wealthy to benefit from an advisor—many work with clients at various wealth levels and life stages, though their minimum requirements and fee structures differ.