A financial advisor’s role goes far beyond managing investment portfolios—though that’s central for most. These professionals serve as your personal financial guide, helping you navigate life’s major money decisions, from saving for retirement and funding education to managing debt and planning estates.

The general public is very confused about what we do and who we serve. They are not aware of the many different service models that exist,” said Sumit Singhal, a member of Investopedia’s Advisor Council and founder of Sofia Financial in Berwyn, Pennsylvania. “It’s still a common assumption that someone needs millions of dollars of investable assets in order to get the help of a financial advisor.

Understanding the Role of a Financial Advisor

Everyone has financial goals: you want to be able to retire or have money to help your kids pay for college. But most of us don’t have finance degrees, and even those who do often find it better to get the help of a trusted professional who has the right licenses and experience to help them meet their goals.

“Good conversations with clients will bring out the constraints they face and about their personal values,” McCullough said. “These should be the guide to how to decide among the many things a dollar could do.”