What is an Advisor?

In my Play to Prosper book series, I use game and play analogies to make investing education more accessible. We are all familiar with basic game concepts. Relating investing to the world of games can provides structure many students find useful as they grapple with often strange and potentially intimidating financial and investing literacy issues.

Using a game or sporting analogy, financial advisors are coaches. They are the ones who help us to play the game better. They teach us strategy and provide feedback regarding our fitness (both in terms of physical ability and game knowledge). A good coach will point out a player’s deficiencies and make recommendations for improving a player’s skills. A good coach also will understand a player’s mental state and provide stability during times of turmoil, injury and self doubt.

In the investing game, coaches (i.e., financial advisors, consultants and planners) may advise clients to buy or sell particular assets, such as stocks, bonds or specific mutual funds. They may also provide guidance on preparing wills, dealing with taxes, evaluating insurance and setting up a trust.

Our focus is on financial advisors. While we discuss lawyers and accountants as well, the main objective is to deal with those who help us directly to identify, buy, and sell financial instruments, or help us put together plans for buying and selling financial instruments.

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