Investment advisors are registered professionals who manage and recommend investments for clients. They're regulated by state authorities or the SEC, depending on their assets under management (AUM).

These professionals typically charge 0.59% to 1.18% of managed assets, though some offer flat fees or hourly rates ($120-$300). Unlike general financial advisors, investment advisors must be registered and have a fiduciary duty to act in their clients' best interests.

Investment advisors are beneficial for those who:

• Need help selecting and managing investments
• Have complex financial situations
• Want professional guidance for wealth growth
• Seek comprehensive investment strategies

For simpler financial needs, robo-advisors offer automated portfolio management at lower costs (0.25% to 0.50% annually).

Key differences from financial advisors:

• "Investment advisor" is a legally regulated term
• Must be registered with SEC or state regulators
• Have fiduciary responsibility to clients
• Often hold additional certifications (CFP, CFA)
• Can provide broader financial guidance beyond investments

Registration requirements:

• Mandatory for those providing investment advice for compensation
• SEC oversight required at $110 million+ AUM
• State regulation below $110 million AUM
• Must maintain written policies on insider trading, privacy, and ethics

Before hiring an investment advisor:

• Verify their registration status
• Check qualifications and certifications
• Understand their fee structure
• Review their fiduciary obligations
• Research their background through FINRA's BrokerCheck

Investment advisors provide valuable expertise for those seeking professional investment management, though alternatives like robo-advisors may better suit those with straightforward financial needs.

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