by Laura Adams

Seeking help from financial advisors is a smart way to get your personal finances in shape this year. Before you make an appointment, however, you should get to know the different types of advisors and understand exactly what they do. In this article I’ll cover 6types of financial professionals to work with to help achieve your goals.

Do You Need a Financial Advisor?

Even if you have a do-it-yourself philosophy about handling your money, working with a financial advisor is one very smart move you can make to grow rich. Advisors can play a critical role in helping you build wealth, protect your assets, answer complex questions, plan for retirement, improve your money management skills, and break through barriers that are holding you back from accomplishing more. Financial advisors are for everyone—not just the rich and famous. You can meet with an advisor for a one-time consultation or maintain an ongoing relationship. The idea is to find the right advisor for your specific needs.

6 Types of Financial Advisors

So without further ado, here are 6 types of financial advisors, what they do, what they charge, and how they can help youachieve your financial goals:

Financial Advisor #1: Tax Accountant

A tax accountant has expertise in tax planning, filing income tax returns, and preparing financial statements. If you have anything that’s complicated when it comes to taxes—like rental property, business interests, self-employment income, or a home office—be sure to hire an accountant to do your taxes. A CPA or Certified Public Accountant is generally the best kind to use because they’ve passed a rigorous exam and are regulated by the state where they work. They make sure you get every possible tax benefit so you owe as little tax as possible each year. Their fee depends on the complexity of your situation and the amount of time it takes to complete your tax return—but it may not be more than a few hundred dollars. In many cases, a good tax accountant will save you more money than they charge! You can find a CPA in your area by visiting the American Institute of CPAs Web site at aicpa.org.

Financial Advisor #2: Banker

A banker is a representative of a banking institution and he or she offers different services depending on the type of bank that they work for. For example, a commercial banker can help you get a business loan and open up appropriate accounts for your small business. A personal banker can help you utilize accounts that earn the most interest, purchase a CD, or open up an IRA. A mortgage banker can evaluate your finances to see if youqualify for a home loan. Most banking services are free to existing customers or to potential new customers, so never be shy about asking a banker for help.

Financial Advisor #3: Insurance Agent

Financial advisors are for everyone—not just the rich and famous.

You might not think of an insurance agent as a financial advisor, but they play an important role in helping you protect your wealth. They’re licensed and regulated at the state level to sell policies for large insurers. Most agents work on commission but will consult with you about your insurance needs free of charge. It’s a good idea to meet with your insurance agent at least once a year to review your policies. Ask them lots of questions so you understand exactly what your insurance covers and what it doesn’t. Having too little insurance is risky, but being over insured can be expensive. A good insurance agent will help you find the sweet spot where you have affordable coverage that minimizes your exposure to financial risk.

Financial Advisor #4: Registered Investment Advisor (RIA)

A Registered Investment Advisor is a special type of broker—that’s a professional who’s licensed to buy and sell securities, like stocks and mutual funds. A broker has to recommend “suitable” investments for clients, but an RIA is held to a higher fiduciary standard. An RIA must put their clients’ interests first by making sure that the investments youbuy and sell are consistent with your financial goals and long-term objectives.

A Registered Investment Advisor manages your portfolio and typically gets paid a percentage of your assets under management, rather than a commission on individual transactions (like a regular broker does). That gives an RIA a strong incentive to recommend profitable investments that are likely to make your portfoliogrow over time. Both brokers and RIAs are regulated by state and federal authorities. You can do a background check on these professionals at finra.org, the Web site for theFinancial Industry Regulatory Authority. You can also check up on RIAs on the SEC Web site at adviserinfo.sec.gov.

Financial Advisor #5: Financial Planner

A financial planner analyzes clients’ needs based on their long-term goals. They can create a comprehensive plan or focus on specific issues like investments, insurance, or estate planning. The financial planning industry isn’t regulated which means there’s a lot of disparity in qualifications and business practices. There are about 100 different designations that are designed to convey planning expertise. However, many of these designations are irrelevant and lack professional credibility. The most common designation is Certified Financial Planner or CFP because these advisors must pass a comprehensive exam and have a certain amount of experience.Visit cfp.net, the Certified Financial Planner Website to find a professional with this designation.

Financial planners are paid in several different ways, including commission-only, fee-only, salary, or a combination of these methods. In general, you’ll receive more objective advice from a fee-only planner who doesn’t have an incentive to steer you toward a particular investment or insurance product. The only downside is that the fee you pay a fee-only planner might be higher than what you’d pay to a commission-based planner. Financial planners typically work with you in person, but also may be able to consult with you over the phone.

Financial Advisor #6: Financial Coach

A financial coach partners with clients to help them establish and accomplish specific goals. The coaching industry isn’t regulated and has a wide range of practitioners who focus on various issues. A qualified coach has broad knowledge of their specific field, as well as an ability to inspire you to take action. Financial coaches dig into the details of your existing situation—both financially and personally—to discover what’s holding you back from building wealth.Coaches can be used for a specific purpose—like navigating through a home purchase, creating and sticking to a budget, combining finances with a life partner, getting rid of debt, or choosing employee benefits—or they can be used for general knowledge and motivation. Coaches make recommendations and offer personalized support that allows you to form positive habits and make steady progress toward your financial goals.Financial coaches might work with you in person, over the phone, by e-mail, or by a combination of these methods. They’re typically paid per session or charge a flat rate for a series of consultations.

How to Find a Financial Advisor

Navigating the world of personal finance can be challenging and even a bit frustrating at times. It’s important to make smart, objective financial decisions, rather than emotional ones—and having the right financial advisor can help you do that. Word of mouth is a great way to find good advisors, so be sure to ask your co-workers, friends, and family for their recommendations.

A final quick and dirty tip is that in many cases, when you have a significant life event such as getting married or divorced, coping with the death of a spouse, having children, buying a home, buying or selling a business, receiving an inheritance, or changing careers, it’s time to seek the help of financial advisors.

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Connect with Money Girl!

If you’re ready to make big changes in your financial life, find out more about Laura’s one-on-one Financial Life Coaching at SmartMovesToGrowRich.com. For more money tips and advice, sign up for the free Money Girl newsletter and connect on Facebook and Twitter. E-mail your money questions to money@quickanddirtytips.com.