Daniel Stewart

What is an Investment Advisor?

When you need help managing your assets and growing your wealth, you have many professionals you can turn to. While most are familiar with the generic titles that financial experts hold, fewer people understand the unique services these professionals offer and their role in your team.

Investment advisors are individuals or companies you can hire for advice about your securities. Advisors can provide personalized investment advice, helping you meet your short- and long-term goals. Depending on their licensing, they may offer brokerage services to buy and sell stocks or manage entire investment portfolios.

Investment Advisors vs. Financial Advisors

While these two titles appear similar, they refer to two types of professionals. The title of "financial advisor" is more of an umbrella term. It's a generic name for someone who is a registered representative. They can represent you and offer a range of services.

You can see these experts for investment advice, taxes, estate planning and more. Many also seek their guidance for specialty financial matters, such as opening an HSA for financial advisors.

So, what makes a financial advisor different from an investment advisor? Both are registered financial professionals. But, an investment advisor must register with either the Securities Exchange Commission (SEC) or state securities regulators.

It's a legal title. Technically, the laws that govern the profession spell it as "adviser," but most people use the term "advisor."

Either way, investment advisors deal with large sums of money. Generally, investment advisors will register with state regulators when they manage assets totaling up to $100 million. Once they reach the $100 million threshold, they must register with the SEC.

When you seek professional guidance about opening an HSA for financial advisors, you usually work with someone with significantly fewer assets under management. Investment advisors deal with more securities, requiring strict regulatory control.

Investment advisors can use different titles. For example, some advertise themselves as asset managers, portfolio managers or wealth managers. However, you can check with state regulators and SEC databases to ensure the advisors you work with have the appropriate qualifications.

Author Resource:-

Daniel Stewart has been helping people with their money management and personal finance with over 15 years' experience in business finance. You can find his thoughts at HSA investment advice blog.