When deciding to invest your money with a firm, you must make a couple of very important decisions. First you must choose what type of financial advisor (below) to choose. The next step would be to choose a specific person to handle your finances. When choosing a specific financial advisor, you need to ask questions. These questions will ensure that you are dealing with a reputable person that has the same investing strategy that you do.

Accountants:

Mostly offer tax advice but some offer financial advisory services and products. They may charge hourly or flat fee, and some may earn commissions on sales.

Banks:

Offer many risk free, federally insured savings plans. Additionally, they may offer uninsured, higher yield products and financial advisory services.

Brokers(discount):

Offer a wide range of investment products but offer no assistance to clients in selecting the right ones. They are compensated on a per-transaction basis.

Brokers(full service):

Sell and make recommendations on a variety of investment products. They earn commissions and other fees for services beyond that of a discount broker.

Financial Planners:

Help clients determine goals and develop strategies. Most charge fees for advice and earn commission on products sold.

Insurance Agents:

Beyond selling insurnace, they also may offer financial advice and sell mutual funds or annuities on a commission basis.

Investment Advisors:

Offer advice about securities, asset management, and money magagement. They have different fee systems, though some may earn commissions.

No-Load Mutual Fund Companies:

Sell shares of mutual funds directly to consumers rather that through salespeople on commission. They often provide free information on investment products.

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Adapted from From Here to Security Newsletter