This document answers some of the typical questions we receive from investors about investment advisers. You should not rely upon it to determine if you need to register as an investment adviser. For instance, individuals who receive compensation for giving advice to a specific person on investing in stocks, bonds, or mutual funds, are investment advisers.
Some investment advisers manage portfolios of securities.
Others call themselves financial planners, but they may only be able to recommend that you invest in a narrow range of products, and sometimes products that aren't securities. Before you hire any financial professional, you should know exactly what services you need, what services the professional can deliver, any limitations on what they can recommend, what services you're paying for, how much those services cost, and how the adviser or planner gets paid. The most important thing is that you know your financial goals, have a plan in place, and check out the professional you chose with your securities regulator. Each compensation method has potential benefits and possible drawbacks, depending on your individual needs. Ask the investment advisers you interview to explain the differences to you before you do business with them, and get several opinions before making your decision.