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Do You Need a Financial Advisor?

A guide to using 6 types of financial advisors to help achieve your goals.

By
Laura Adams, MBA,
January 18, 2011
Episode #206

Page 1 of 3

Seeking help from financial advisors is a smart way to get your personal finances in shape this year. Before you make an appointment, however, you should get to know the different types of advisors and understand exactly what they do. In this article I’ll cover 6types of financial professionals to work with to help achieve your goals.

Do You Need a Financial Advisor?

Even if you have a do-it-yourself philosophy about handling your money, working with a financial advisor is one very smart move you can make to grow rich. Advisors can play a critical role in helping you build wealth, protect your assets, answer complex questions, plan for retirement, improve your money management skills, and break through barriers that are holding you back from accomplishing more. Financial advisors are for everyone—not just the rich and famous. You can meet with an advisor for a one-time consultation or maintain an ongoing relationship. The idea is to find the right advisor for your specific needs.

6 Types of Financial Advisors

So without further ado, here are 6 types of financial advisors, what they do, what they charge, and how they can help youachieve your financial goals:

Financial Advisor #1: Tax Accountant

A tax accountant has expertise in tax planning, filing income tax returns, and preparing financial statements. If you have anything that’s complicated when it comes to taxes—like rental property, business interests, self-employment income, or a home office—be sure to hire an accountant to do your taxes. A CPA or Certified Public Accountant is generally the best kind to use because they’ve passed a rigorous exam and are regulated by the state where they work. They make sure you get every possible tax benefit so you owe as little tax as possible each year. Their fee depends on the complexity of your situation and the amount of time it takes to complete your tax return—but it may not be more than a few hundred dollars. In many cases, a good tax accountant will save you more money than they charge! You can find a CPA in your area by visiting the American Institute of CPAs Web site at aicpa.org.

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