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You've Heard the Term — But What Does a Financial Advisor Actually Do?
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September 1, 2026

Phase 4: Scale the Structure

You've Heard the Term — But What Does a Financial Advisor Actually Do?

3 min read

by:
Anthony O'neal
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You've Heard the Term — But What Does a Financial Advisor Actually Do?

When most people hear the words financial advisor, one of two things happens.

Either they think, "That's for rich people — not me." Or they nod like they know what it means... but honestly have no idea what these people actually do.

Family, I've been there. And I want to change that today.

Because here's the truth: not understanding what a financial advisor does — and when you need one — is costing everyday Americans thousands of dollars and decades of lost wealth.

So let's fix that. Right now. No jargon. No fluff. Just real talk.

First Things First — What Is a Financial Advisor?

A financial advisor is a professional who helps you build a long-term strategy for your money. They help you figure out where you are, where you want to go, and how to get there without making costly mistakes along the way.

Think of them like a financial GPS.

You're still the one driving. But they help you avoid the wrong turns — the bad investments, the tax mistakes, the retirement gaps — that can set you back years.

Here's something most people don't know: "financial advisor" is actually an umbrella term. It covers a wide range of professionals, including:

  • Investment professionals
  • Tax advisors
  • Wealth managers
  • Financial planners

Each one serves a different purpose. And knowing the difference is the first step to making sure you're working with the right person for your situation.

What Can a Financial Advisor Actually Help You With?

This is where it gets real. A financial advisor isn't just someone who picks stocks for you. They can help you in more areas of your financial life than most people realize.

Retirement Planning

Let me ask you something. What does your dream retirement look like?

Traveling? Spending time with your grandkids? Starting a small business? Whatever it is — you need a plan to fund it. Because Social Security alone is not going to cut it.

A financial advisor helps you figure out how much you'll need, how to grow your retirement accounts, and when to start pulling from them so you don't get hit with penalties. They help you build a future that doesn't run out of money before you do.

Your children's children's children deserve a legacy — not a financial mess to clean up.

Investing

If you're debt-free and ready to start building wealth, a financial advisor can help you choose the right investments for your goals and your risk tolerance.

A good advisor won't just tell you what to buy. They'll teach you why. They'll help you stay the course when the market dips — because it will dip — and remind you that you're building for the long haul, not chasing short-term wins.

I always recommend spreading your investments across four types of mutual funds: growth, growth and income, aggressive growth, and international. A trusted advisor can walk you through exactly what that looks like for your situation.

Tax Planning

Nobody enjoys tax season. But a good tax professional can help you keep more of what you earn — legally.

From maximizing deductions to building a tax-efficient retirement strategy, the right advisor helps you stop overpaying the government and start keeping more money in your own pocket. That's not a loophole. That's wisdom.

Estate Planning

Real talk — most Black families don't have a will. And when there's no will, the government steps in and decides what happens to everything you worked for.

That's not legacy. That's loss.

A financial advisor — or an estate planning attorney — helps you make sure your wishes are honored. It helps you protect your home, your savings, and your family's future. It's not a morbid conversation. It's one of the most loving things you can do for the people you care about.

Health and Long-Term Care Planning

Here's a number that should get your attention: the average 65-year-old needs around $172,500 saved just to cover healthcare costs in retirement. For couples, that number doubles.

A financial advisor can help you plan for those costs now — before they become a crisis. They can walk you through long-term care insurance options and help you build a strategy that protects your health and your wealth at the same time.

Inheritance

If you're expecting to receive an inheritance — or you've already received one — a financial advisor can help you handle it wisely.

Because a blessing mismanaged can quickly become a burden. They'll help you understand the tax implications, adjust your financial goals, and make sure that money actually moves your family forward instead of disappearing in a few years.

Financial Advisor vs. Financial Planner — What's the Difference?

These terms get used interchangeably all the time. But they're not the same thing.

A financial planner focuses specifically on helping you create a plan to reach long-term goals — things like saving for a home, funding a college education, or building a budget that actually works. They map out the journey.

A financial advisor is the broader term. It includes planners, but also investment professionals and wealth managers.

A wealth manager typically works with people who already have significant assets — we're talking millions. If you've received a large inheritance or have a complex estate, a wealth manager may be the right fit.

A robo-advisor is an automated, algorithm-based service. Low cost, but zero personal guidance. No algorithm knows your story, your family, your faith, or your goals. It's not a replacement for a real human advisor who's invested in your success.

How to Choose the Right Financial Advisor

This is where most people get it wrong. They go with the first name they find, or they pick whoever their coworker recommended without asking a single question.

Family, this is your future. Be intentional.

Here's what I recommend:

Interview at least two or three advisors before you commit.
Don't rush this. Come prepared with questions. The right advisor will welcome them.

Find someone who teaches, not just sells.
You should leave every single meeting smarter than when you walked in. If an advisor is talking over your head, rushing you into decisions, or making you feel dumb for asking questions — that's the wrong advisor. Walk away.

Make sure their values align with yours.
If legacy, faith, and long-term thinking matter to you, find someone who gets that. You don't want someone pushing you into investments that don't match your goals or your values.

Understand exactly how they get paid.
There are three main ways advisors charge for their services. Some earn a commission when you invest. Some charge a flat or hourly fee. And some use a combination of both. No structure is automatically bad — but you need to know what you're paying and why before you sign anything.

When Do You Actually Need a Financial Advisor?

Honest answer? It depends on where you are in your journey.

If you're still carrying debt — focus there first. You cannot build real wealth while you're drowning in payments. Get on a budget. Attack your debt using the snowball method. Build your emergency fund. Get your foundation solid.

But once you're debt-free and ready to invest? Yes. Get a financial advisor. The cost of not having one — the missed opportunities, the wrong moves, the tax mistakes — will cost you far more over time than any advisor fee ever will.

What Makes a Good Financial Advisor?

Not all advisors are created equal. Here's what to look for:

They act as a fiduciary. This means they are legally required to act in your best interest — not their own. Always ask if your advisor is a fiduciary before you work with them.

They educate you. A great advisor wants you to understand your money. They break things down clearly and make sure you're confident in every decision.

They have a long-term mindset. You want someone who will encourage you to stay the course — not someone who reacts to every market swing with panic.

They respect your goals. Your retirement dream is yours. A good advisor builds a plan around your life — not a cookie-cutter template.

Conclusion

Family, here's the bottom line.

A financial advisor is not a luxury reserved for the wealthy. It's a tool — and when used at the right time, with the right person, it can completely change the trajectory of your family's financial future.

Here's a quick recap of what we covered:

  • A financial advisor helps you build a long-term strategy for your money
  • They can help with retirement, investing, taxes, estate planning, healthcare costs, and inheritance
  • Not all advisors are the same — know the difference between a planner, advisor, wealth manager, and robo-advisor
  • Interview multiple advisors, find someone who teaches, and always understand how they get paid
  • If you're still in debt, focus there first — then bring in an advisor when you're ready to build

You don't have to figure this out alone. That's the whole point.

Your next step: If you're debt-free and ready to start investing, connect with a trusted financial professional who understands your goals, your values, and your community. Don't wait until you feel "ready enough." The best time to start was yesterday. The second best time is today.

Now I want to hear from you — have you ever worked with a financial advisor? What was your experience like? Drop it in the comments. Let's talk about it.

Keep building,

‍

ABOUT THE AUTHOR
Full name

Anthony O'Neal is a bestselling author, speaker and personal finance educator. He teaches families how to get out of debt and build real wealth on any income through The Escape Plan, his show The Table with AO, and the In the Black app.

About the Author

Anthony O'neal

Anthony O'Neal is a #1 national bestselling author of Debt-Free Degree, personal finance expert and host of the popular podcast and YouTube show "The TABLE." Since 2014 he has challenged cultural norms and equipped millions of people to live a debt-free life, break generational wealth-gaps and build true wealth. He has appeared on Good Morning America, Live! with Kelly and Mark, Fox & Friends, Rachael Ray, The Tamron Hall Show, CNN News and has been featured in Success Magazine, MarketWatch, Bloomberg, Black Enterprise and GOBankingrates, among others. Anthony is a sought after, dynamic public speaker, speaking on stages with audiences of 40k+ people and an adjunct professor at Virginia Union University in Consumer Economics. He has been recognized by Black Enterprise as Top 40 Under 40 (2023) and Top 25 Personal and Professional Development Influencers to Follow by Success Magazine (2023). He is the author of Take Your Seat at The Table: Live an Authentic Life of Abundance, Wellness, and Freedom, and his latest book, Stop Living Paycheck to Paycheck. He resides in the Washington, DC suburbs.

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