What does a financial advisor do?

I get a variation on this question every week. The answer isn't very simple, partly because the term "financial advisor" is barely regulated: some people only sell insurance and still call themselves financial advisors; some advisors only manage investment accounts, while other advisors don't help with investment accounts at all. Because of this wide range of definitions, it's hard to answer generally what a financial advisor does, but instead, I can tell you specifically what I do (and don't do) as a financial advisor.

What I do:

· Open Accounts - I can open brokerage accounts, high yield cash accounts, IRAs, Roth IRAs, Solo 401(k)s, SEPS, SIMPLES, beneficiary IRAs, trust accounts, UTMAs, and 529s, to name a few. I balance keeping the number of accounts low with the most advantageous account strategies.

· Manage Investments - I can manage the investments in those accounts and give advice on 401(k)/403(b)/TSP plan investments. I can make rebalancing trades. I can tax-loss harvest. I can buy and sell mutual funds, ETFs, index funds, individual stocks and bonds. I tailor investments to my clients' goals and risk tolerance.

· Create Financial Plans - I can create a financial plan tailored to each client's facts and circumstances. Together with my clients, we can build a plan to tell them how much they could spend if they retire today, or if they retire in 20 years, or if they don't retire at all. A financial plan can tell you when you can retire if you want to have a certain income in retirement. A financial plan can tell you how much we expect college to cost at any point in the future and how much you will have to save per month to cover tuition. Put simply, a good financial plan can clarify the money part of making difficult decisions, so my clients can focus on what's more important. I have expertise in estate, insurance, retirement, education, and business planning.

What I don't do:

· Sell Insurance - I don't sell any insurance products. Instead, I work with great partners to source any insurance my clients need (and I never take any financial kickbacks).

· Take Commissions - I don't and never have taken an additional fee to make a trade or any commission from selling financial products. As a fee-only advisor, my fee is straightforward - the only people who pay me are my clients. I set it up this way so my clients know I'm working for them and no one else.

In the end, my answer to the question "What does a financial advisor do" is simple: I help people. What does your financial advisor do?