Financial advisors are there to provide support to retail and institutional investors tied to preserving and growing money. The advice provided may be strictly tied to investing in the financial markets, including stocks and bonds, or it may include counsel on estate planning and writing a last will and testament. Wealth managers, full-service stockbrokers, and money managers who oversee large pools of money represent different types of financial advisor jobs that help to make up the financial services industry.
Stockbrokers, particularly full-service brokers, are certified to trade financial securities on behalf of investors and also to offer a layer of advice about investing. In order to practice in this industry, individuals seeking these financial advisor jobs must become certified by completing a securities exam such as the Series 7 or Series 63. Those particular tests are administered by the Financial Industry Regulatory Authority in the U.S. Brokers could work in brick-and-mortar locations and physically visit with clients, or these professionals could be employed by online brokerages where much of the communication with investors is done over the Internet or via telephone.
Individual investors might engage wealth managers to advise on different aspects of financial security. The type of professional selected may have a lot to do with existing relationships or referrals. Financial advisor jobs could be located within large financial institutions or at independent firms that may or may not be subsidiaries of larger brands. These personal financial advisors frequently advise clients on asset allocation or what percentage of an investment portfolio to direct into stock, bonds, and real estate, for instance. Also, professionals who fill these types of financial advisor jobs can provide the framework for individuals to plan for retirement, estate planning, and tax implications.
Money managers oversee assets on behalf of investors. Assets from multiple investors are pooled together, and money managers direct those assets into various securities in the financial markets using different strategies. Individuals who pursue these financial advisor jobs must make investment decisions on behalf of many investors and buy and sell securities as opportunities arise.
Often, there is a performance expectation or benchmark that a money manager must achieve in order to earn sufficient profits. Depending on the type of investment vehicles managed, these professionals may charge layers of fees to clients based on different criteria. Mutual fund managers, for instance, charge fees based on the value of assets overseen for each investor, but those details are typically outlined in a fund's regulatory documents.
