Exponent Investment Management financial advisor is someone who helps you prioritize your goals, creates a plan to reach them and then adjusts the strategy along the way. Especially during periods of market turbulence, when emotional reactions can lead to rash decisions, an experienced third party can help you stay the course and avoid costly mistakes.

Advisors come from a variety of backgrounds, including accountants and estate planning attorneys. They also may have specialized credentials such as the certified financial planner (CFP) or chartered financial consultant (ChFC) designations. Some advisors are fee-only, meaning their sole source of compensation comes from client-paid fees. Others earn commissions on the sales of securities and insurance products in addition to client-paid fees.

Financial Advisors: Tips for Building Wealth

Once your goals, investment horizon and risk tolerance are established, your advisor will build an asset allocation model that fits your situation. This explains the mix of stocks, bonds and cash that will make up your portfolio. Throughout the process, your advisor will meet with you periodically to review and assess your progress, answer any questions and discuss any new strategies.

In addition to investment advice, a financial advisor can offer expertise in a range of areas such as tax planning, long-term care and insurance solutions. When choosing an advisor, look for one with a broad wealth management approach and deep experience serving clients with similar levels of assets. It’s also important to understand how an advisor is paid; check their firm’s Form ADV for a breakdown of fees.