Some investors feel that they don’t have the time or energy to identify stocks and invest. Such people need a qualified financial adviser. Depending on how much time you are willing to devote to your stocks, you can decide whether you want a financial adviser or not.

Financial advisers look at your complete financial situation. They will then develop a profile identifying your strengths and weaknesses. A good financial adviser works out a plan considering your finances and helps you to achieve your goals.

A financial adviser helps you to allocate appropriate funds to all your goals. He will also help you to make investments in such a way that you will have to pay minimum taxes.

Depending on how they are compensated, financial advisers can be of these types:

• Fee only: they do not sell any products other than their plan itself. These are the most expensive type of financial advisers.

• Fee and commission: this type of adviser is there to build a plan and execute it. He receives a commission from executing the plan in addition to his fee.

• Commission only: he is basically a salesperson who wants to sell you his product.

 Certified Financial Planners are professional financial advisers. These are qualified advisers who have education and experience in their field. However, if you decide to use a financial adviser, it is most important that you trust the person. The person you deal with must have high ethical standards. You will be able to work confidently with him only if there is mutual trust.