Which kind of adviser is best for you?

Financial advisers come with a variety of titles and specialties. In order to know which type you need, you need to know what each adviser can do for you.

There are many reasons to seek out a financial adviser, including to create a financial plan for investing and saving for retirement, selling or passing on the family business, leaving an estate with minimal tax impact, and handling a windfall such as an inheritance.

Every financial adviser is dedicated to helping you manage your money. Here is a rundown of what makes each type of adviser different:

Financial Adviser. This is a catch-all term that includes anyone who offers to help you with financial matters. Many stockbrokers, also called registered representatives, use this title today. A stockbroker must pass exams on selling securities and become licensed to buy and sell stocks, bonds, mutual funds and other securities products.

Investment Adviser. Investment advisers will formulate long-term investment strategies for wealthy individuals. They have a fiduciary responsibility to ensure all investments are appropriate for the client.

Financial Planner. Financial planners discuss their client’s long-term goals and develop a comprehensive financial plan that covers investments and also savings strategies, taxes, retirement planning, college funding and estate planning, depending on each clients’ individual needs. Look for the CFP, or Certified Financial Planner, designation. CFPs meet extensive requirements in education, examination, experience and ethics to be certi-

fied by the national CFP Board of Standards.

Wealth Manager. People who already have compiled significant wealth may turn to a wealth manager for help with estate planning, risk management and capital gains planning. Wealth managers specialize in managing complex assets efficiently.

Within these larger areas of specialization there are a dozens of designations. Along with the CFP, one of the other recognized designations in this space is the CFA, or Chartered Financial

Analyst. CFAs specialize in investment analysis and like CFPs must meet stringent requirements in experience, education and ethics.

Other industry designations include CPWA, or Certified Private Wealth Advisor, and CIMA, or Certified Investment Management Analyst. Each of these signifies the holder has undergone extensive education and testing concentrated on specific areas of financial expertise.

You should interview at least three different advisers before settling on one. And a final note: Be wary of any adviser who claims the ability to outperform

the market. A good adviser, no matter their professional designation, will discuss how much risk you are comfortable with and will ask you about your goals and timing, and will talk about ensuring that your investments are properly diversified and regularly rebalanced. If they brag about making a killing, move on to your next adviser interview.