# Financial advisor

Canonical URL: https://olomon.com/financial-glossary/financial-advisor
Markdown twin: https://olomon.com/financial-glossary/financial-advisor/llms.txt
Category: Financial Planning & Collaboration (https://olomon.com/financial-glossary/categories/financial-planning-collaboration)
Also known as: Financial planner, Wealth advisor
Last updated: 2026-04-18

## Definition

A financial advisor is a professional who helps individuals or institutions plan, invest, and manage money. The term is broad and may include CFP® professionals, registered investment advisers (RIAs), broker-dealer representatives, insurance agents, and wealth managers — with widely varying credentials, fee structures, and standards of care.

## Key takeaways

- “Financial advisor” is a generic title — always look up the underlying credentials and registrations.
- RIAs are fiduciaries; broker-dealer reps are subject to Regulation Best Interest.
- Compensation models vary: fee-only, fee-based, commission, AUM, hourly, flat retainer.
- Verify any advisor at SEC IAPD (adviserinfo.sec.gov) and FINRA BrokerCheck (brokercheck.finra.org).

## How Olomon thinks about this

_The following section is Olomon's first-party perspective, informed by our work building a financial system of record. It is intentionally separated from the neutral definitional content above._

Olomon makes the advisor relationship more efficient and more accountable. Advisors get permissioned access to a current household record; households get visibility into what the advisor is seeing and doing on their behalf. That symmetry is the foundation of a healthy long-term advisory relationship.

## In-depth definition

Picking a financial advisor is one of the most consequential financial decisions a household makes. Credentials, [fiduciary](https://olomon.com/financial-glossary/fiduciary) status, fee model, and specialization all matter — and the right answer for one family is wrong for another. A 35-year-old W-2 employee accumulating wealth has different needs than a 70-year-old retiree distributing it.

## Frequently asked questions

### How do I check whether a financial advisor is legitimate?

Use SEC IAPD (adviserinfo.sec.gov) for investment advisers and FINRA BrokerCheck (brokercheck.finra.org) for brokers. Both show registration history, employment, and any disclosure events.

## Sources

1. [Check Your Investment Professional](https://www.sec.gov/check-your-investment-professional) — U.S. Securities and Exchange Commission. Cited for: SEC verification resources.
2. [Brokers and Advisors — FINRA](https://www.finra.org/investors/professionals) — Financial Industry Regulatory Authority (FINRA). Cited for: Investor verification of brokers.

## Related reading from Olomon

- [How to Build Your Financial Advisory Team](https://olomon.com/blog/how-to-build-and-lead-your-financial-dream-team)

## Related terms

- [Certified Financial Planner (CFP)](https://olomon.com/financial-glossary/certified-financial-planner-cfp)
- [CPA (Certified Public Accountant)](https://olomon.com/financial-glossary/cpa-certified-public-accountant)
- [Fiduciary](https://olomon.com/financial-glossary/fiduciary)

## Cite this page

Olomon Editorial Team. (2026). Financial advisor. Olomon Financial Glossary. https://olomon.com/financial-glossary/financial-advisor

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