No, they are not. A stock broker merely helps with the execution of stock trades and maybe gives a little advice.
The NAPFA defines Personal Financial Advising as situation where industry professionals help people to manage their money for both the the near future and long term by helping them in deciding which stocks, bonds, and mutual funds to invest in. This is an excellent defintion of Personal Financial Advising in general terms but does explain everything.
Personal Financial Advising is needed when someone needs assistance in managing their money but does not have the time, knowledge, or resources to do it in the most effective way. When this happens a Personal Financial Advisor is needed.
The goal of a Personal Financial Advisor is to help their customers in attaining all of their financial goals. A Personal Financial Advisor should be involved in all areas of a customers financial situation beyond their day-to-day situations. In doing this one might be involved in helping customers invest for retirement, invest for a childs college, make the proper general investment choices, or even help with home loans (mortgages) or car loan advice.
Whenpeople uses a Personal Financial Advisor there is often a charge associated with the use of services. Often times though the charge is greatly out weighed by the financial gains one sees from the advice they receive.
In the end Personal Financial Advisors is just as they seem. They are simply advisors who give clients advice on how they should handle their finance so that their moeny works for them instead of them working forever because they don’t have any money. When it comes down to it, it is ultimately the individuals decision on how they want their money to be handled. Personal Financial Advising is a great tool for anyone who wants to experience financial freedom but does not have the knowledge, time, or resources to do it on their own.
I hope this article has at least give you an idea of what Personal Financial Advising is. This article was very brief on the topic of Personal Financial Advising and a book could most certainly be written to explain it in full detail.http://hubpages.com/hub/Personal-Financi…
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One Comment
No they are not. Having said that, nowadays, most try to offer services that overlap what the others can do. A stock broker may try to give you advices on what is a good way to spend your money (he shouldn’t because his answer will always be ‘BUY more STOCKS’, anyway that is the fin. advisor’s job). A financial advisor may try and set you up with their company brokerage services to trade (they shouldn’t because they won’t really have the technical knowlegde that comes with buying and selling stock- let your stock broker handle that).
You can see the difference and dilemma it creates when trying to go with a ‘one-stop-shop’.