Types of Financial Services Offered by Financial Advisors

Written by True Tamplin, BSc, CEPF®

Reviewed by Subject Matter Experts

Updated on August 10, 2023

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Financial advisors are professionals who help people manage their money to improve their finances. They may work with individuals, businesses, or both.

Why Consider Getting a Financial Advisor?

Advisors are extremely helpful for people who want to make the most of their money but lack the time or expertise necessary to comb through all of their options.

They can provide guidance on a wide variety of needs, including tax planning, estate planning, retirement planning, insurance planning, and portfolio management.

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What Are the Various Types of Financial Advisory Services Available?

Advisors can provide many different types of financial services. Here are some services to name a few:


Financial Planning Service

Financial Planning Service Financial Advisors are experts at understanding your financial situation, your family's needs and goals, and your personality type.

Financial planning involves assessing your risk tolerance (how you will care for the money that belongs to you), developing realistic objectives (what you want to accomplish), building a plan on specific strategies that work for you, and monitoring that plan's effectiveness.

Financial planning ends with a review of your results and modifications to the plan where necessary.

Retirement Plans Services

Retirement Plans Services Financial Advisors understand all aspects of retirement planning, including IRA's, 401(k) plans, 403(b) plans, pension plans, profit-sharing plans, SEP accounts, SIMPLE accounts, and deferred compensation plans.

They can help you decide what tax benefits are available to you.

They advise on all aspects of retirement plan design, including funding strategies, distributions, rollovers and transfers between plans, IRS compliance requirements, and the best use of legal entities for plan administration.

Business owners are also assisted in effective wealth transfer planning by providing an analysis of the impact of business valuation, estate taxes, and income taxes.

Insurance Services

Insurance Services Financial Advisors help their clients understand the many aspects of insurance, which include term life insurance, whole life insurance, universal life insurance policies, long-term care insurance options, health insurance, and disability insurance.

This service entails the advisor to help plan for your family's needs in case of a loss of income due to death or accident, provide an explanation of the types of permanent life policies available, review your existing policies and recommend changes if necessary.

The goal here is to maximize your current health insurance plan, including avoiding penalties for late enrollment, maximizing your contribution to reduce premiums, choosing compliant plans with favorable deductibles.

It also includes co-pays, adding additional insured's, identifying lost coverage opportunities for dependent children, and the purchase of additional coverage when your spouse retires.

Tax Services

Tax Services Financial Advisors can help you with tax planning strategies to keep your taxes low.

This may include incorporating your business, converting a salary or bonuses to deductible distributions.

It may also include making nondeductible contributions to retirement plans if it makes sense after considering the impact on income taxes, and coordinating your tax planning strategies with your financial planning strategies.

Financial advisors may also help you prepare for an IRS audit if necessary, including the representation before the IRS in case of an audit. Financial advisors use their knowledge to provide a tax plan to keep more of the money you earn.

Financial Forecasting and Analyses Services

Financial Forecasting and Analyses Services Financial Advisors provide their clients with Financial Forecasting and Analyses Services to better understand their financial situations.

They help plan for the unexpected, like sudden losses of income or family emergencies.

Financial advisors will spend time getting to know you, your preferences in lifestyle and financial matters, your goals in the future.

Financial Strategy Services

Advisors provide Financial Strategy Services that assist their clients in understanding the impact of all financial decisions.

This type of financial advisor helps you manage risk and maintain liquidity. They also help you with a plan for saving, spending, and long-term investing to achieve your financial goals. It is critical to recognize the importance of financial advisors' services.

If you're considering hiring one, read this article to discover how to ask better questions and select the best advisor for your needs: 12 Questions to Ask a Financial Advisor

The Bottom Line

Financial advisors will take the time necessary to understand your current financial situation, your future goals, and aspirations, any insurance needs you have, and provide recommendations to help keep you on the right path.

Financial advisors are there to advise you appropriately now and well into the future and can also help you coordinate all of your financial services to develop a comprehensive, professional plan.

Financial advisors will be there for your family and help keep them safe and will be there to provide financial services that are beneficial to everyone involved.

Types of Financial Services FAQs

About the Author

True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True is a Certified Educator in Personal Finance (CEPF®), author of The Handy Financial Ratios Guide, a member of the Society for Advancing Business Editing and Writing, contributes to his financial education site, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website or view his author profiles on Amazon, Nasdaq and Forbes.

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