Financial Advisor for Stock Market: Services and Examples

A financial advisor can helps individuals understand different investment options within the stock market, manage portfolios and align strategies with personal goals. These professionals may guide clients on selecting individual stocks, exchange-traded funds (ETFs) or broader equity strategies depending on risk tolerance and time horizon. By analyzing market conditions and company fundamentals, they can provide tailored recommendations that fit a client’s objectives. Many advisors also offer ongoing portfolio monitoring and adjusting allocations as market trends and client needs evolve.

Need help selecting investments for your portfolio? Connect with a financial advisor for free and see how they can help.

What a Financial Advisor for Stock Market Investing Does

Financial advisors offer a variety of services connected to stock market investing, from creating strategies to monitoring portfolios over time. Their work often blends planning, risk management and client education, giving investors a structured approach to reaching long-term financial goals.

Portfolio Management

Advisors often provide portfolio management designed to align investments with a client’s objectives, time horizon and comfort with risk. This includes building diversified portfolios of stocks, funds and other assets, as well as making adjustments over time through rebalancing or making shifts in allocation.

Investment Planning

Beyond selecting investments, advisors create structured strategies that connect investing decisions to long-term financial goals. For example, this may involve choosing between growth stocks, dividend-paying equities or index funds, depending on the client’s needs. Planning integrates both short-term priorities and future milestones like retirement.

Risk Management

Managing investment risk is another core service. Advisors help balance the potential for return with the possibility of loss by diversifying across sectors, geographic regions and asset classes. Additionally, they may also use techniques like tax-loss harvesting or defensive allocations during certain market cycles.

Research and Market Analysis

Advisors frequently analyze market trends, economic data and company fundamentals to support their recommendations. This ongoing research helps identify opportunities that match the client’s strategy while maintaining consistency with broader financial goals.

Ongoing Oversight and Communication

Services often include continuous monitoring of a client’s portfolio, with regular updates and performance reviews. Advisors also spend time educating clients about investment concepts and market developments. The aim is to create a transparent decision-making process that helps keep financial strategies on track.

Types of Portfolios

Financial advisors can design different types of portfolios depending on a client’s goals, risk tolerance and investment philosophy. Each structure emphasizes a distinct approach to balancing growth, stability and income.

60/40 Portfolio

A classic allocation, the 60/40 portfolio combines 60% equities with 40% bonds. The equity portion provides growth potential, while the bond allocation offers stability and income. Although skeptics have questioned the model during periods of low bond yields, it remains a foundational approach for blending risk and return.

Dividend Investing Portfolio

This type of portfolio emphasizes stocks that regularly pay dividends. The strategy typically appeals to clients seeking predictable income in addition to growth. Advisors may target companies with long records of increasing payouts, known as “dividend aristocrats,” or balance higher-yielding equities with more stable dividend payers.

Three-Fund Portfolio

The three-fund portfolio simplifies diversification by using three broad index funds: a U.S. stock fund, an international stock fund and a bond fund. Advisors may recommend this structure for clients who want broad exposure to global markets at relatively low cost while still maintaining balance between growth and stability.

Permanent Portfolio

Developed by investor Harry Browne, the permanent portfolio aims to weather all economic environments. It divides assets into four equal parts: stocks for prosperity, bonds for deflation, cash for recessions and gold for inflation. This structure sacrifices higher returns in exchange for resilience and stability across market cycles.

Growth Portfolio

Advisors also may build growth portfolios. These portfolios lean heavily on equities with higher potential for appreciation, such as technology or emerging market stocks. While more volatile, this approach can suit clients with longer time horizons who prioritize capital accumulation.

Growth and Income Portfolio

A growth and income portfolio blends the objectives of capital appreciation and regular cash flow. Advisors often include a mix of growth-oriented stocks with strong earnings potential alongside dividend-paying equities or income-generating bonds. This hybrid approach may suit investors who want to build wealth while benefiting from a reliable income stream, positioning it between more aggressive growth strategies and income-focused portfolios.

How Much Do Financial Advisors Charge?

Financial advisors rely on several pricing models. The most common is the assets under management (AUM) model, where clients pay a percentage of their portfolio each year.

According to the 2024 Kitces Report,¹ the typical schedule is 1% annually up to $1 million, declining to about 0.90% at $2 million, 0.75% at $5 million and 0.60% at $10 million. Because tiered schedules apply higher rates to the first dollars invested, blended fees often remain closer to 1% until portfolios exceed $2 million.

Other approaches include hourly fees, which rose to a median of $300 per hour in 2024 (up from $250 in 2022), according to the Kitces Report. Total costs vary widely depending on the hours required, with comprehensive plans ranging from $1,500 to $8,000. Some advisors charge flat project fees, typically around $3,000 for a standalone financial plan, though amounts can reach $5,000 for extensive work. Subscription models are also growing, where clients pay ongoing monthly or annual retainers, on average around $4,500 per year as of 2024, according to the report.

Each fee structure aligns differently with client needs, portfolio size and complexity of service, offering multiple ways for advisors to deliver advice.

Bottom Line

Financial advisors bring structure and expertise to the investing process by blending research, planning and ongoing oversight. They tailor portfolios to reflect client preferences, whether the focus is steady income, long-term growth or resilience across market cycles. By combining customized strategies with adaptable service models, advisors can help clients pursue financial goals in a way that reflects both market realities and personal priorities.

Tips for Investing in the Stock Market

• A financial advisor can help you evaluate investments and select the ones that align with your objectives. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• Consider holding both growth-oriented stocks or funds and more stable dividend-paying companies. This mix can provide upside potential while still generating steady income. Checking in once or twice a year allows you to make adjustments if certain holdings have become too large or if your goals or risk tolerance have shifted.

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