There’s a big difference between a butcher, a baker, and a Michelin-starred chef. They all work with food — but their training, expertise, and the experience they deliver are worlds apart. Same goes for financial advisors.
“Financial advisor” can mean almost anything — and that’s the problem. It’s a vague label used by people with very different skills, approaches, and agendas.
Now that you know what a financial advisor is, if you need one or should change your current one, let's look at the different types of financial advisors.
This guide simplifies the main types of financial professionals, how they work, and what kind of person they’re best suited to help. All of these roles can serve an important purpose — it just depends on what you need.
Some folks are looking for just one thing — an insurance policy. That could be life, disability, long-term care, or something else. Insurance agents are licensed to help with this and can often find the right product at the right price.
But here’s where it gets tricky...
Some insurance agents also position themselves as full-service financial advisors. If their firm and strategies are centered around insurance products, it’s worth pausing. It’s like hiring a roofer to remodel your kitchen. They might take the job and maybe they could, but is that really their strength and expertise?
✅ Best for:
Someone who needs help picking the right insurance and then wants to move on.
⚠️ Watch out for:
Advice that starts and ends with a product sale. If they’re truly dedicated to being a full-service financial advisor, their firm and strategies wouldn’t be centered around insurance products.
These are professionals (or algorithms, like robo-advisors) who focus only on managing investments in return for a fee. They really won’t provide custom financial advice, do financial planning work, or provide periodic reviews and update meetings on your financial life and goals.
✅ Best for:
Someone who doesn’t have financial planning needs (or has these already taken care of already) and just wants their money invested professionally.
⚠️ Watch out for:
Choosing investments before having a financial plan. That’s like taking a prescription without a diagnosis.
Your investments should follow your financial plan — not the other way around.
Need to get a life insurance policy? Want to buy some stocks? An à la carte advisor can make that happen. You tell them what you want — and pay a fee or commission to get it done.
✅ Best for:
Independent-minded people who know exactly what they want and have a clear plan.
⚠️ Watch out for:
If you wouldn’t feel comfortable telling your doctor what prescriptions to give you, then you may want to think twice about an a la carte advisor relationship. Make sure that you have gone through a diagnosis and have a clear plan in place prior to engaging and telling an a la carte advisor what you want and need.
These advisors provide guidance — but don’t manage your investments or implement the plan. You pay for the advice, and it’s up to you to carry it out.
Some offer one-time sessions. Others have ongoing models where you can ask questions throughout the year and update your plan as life changes.
✅ Best for:
DIYers who want a roadmap and someone to bounce ideas off of — but don’t need help following through.
⚠️ Watch out for:
No proactive follow-up. If you're not someone who takes action on your own, this setup may leave things undone.
These are the adviors who partner with you across the full financial picture. They help you build and maintain a financial plan, manage your investments, and coordinate areas like taxes, estate planning, insurance, stock compensation, and more.
If something falls outside their expertise, they’ll bring in the right person — and stay involved to keep everything aligned.
✅ Best for:
People who value having a guide. They recognize that they are their own worst enemy and want someone between them and their money to help them avoid making mistakes.
Those who feel overwhelmed managing finances solo.
Folks who are great at what they do and want to spend more time doing that — not second-guessing financial decisions.
⚠️ Watch out for:
Not being actively engaged in working with a full-service advisor. The advisor should be taking into consideration your thoughts, ideas, goals, and questions to help shape your financial plan. A great advisor-client relationship is a two-way street.
There may be exceptions, but as with most things in life, I believe you get what you pay for. A full-service financial advisor usually charges more than an investment manager or à la carte advisor — because they’re doing more.
But whatever the fee is, it should be clear and transparent prior to and during your time working with them. That’s the only way to decide if the value you receive is worth it to you.
2024 was a leap year. Being born on a leap day, February 29th every four years, is a 1 in 1,461 chance.
CBS News did a story interviewing leap day babies and the nuances this brings to their lives.
My wife, Lacee, also wrote about this topic back in college as a Journalism and Communication major at the University of Kentucky.
"The most important investment you can make is in yourself.” - Warren Buffett
"If you don’t find a way to make money while you sleep, you will work until you die.” - Warren Buffett
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Life is short and time is precious. Thanks for taking yours to read this and I hope to be a part of your Financial Takeoff!
Disclaimer: This is just for informational purposes and should not be used or viewed as tax, legal, or financial advice. Work with your tax professional, legal professional, and financial planner to evaluate which strategies would be the best for your situation.
