what is an investment consultant 
an investment consultant is a financial professional who provides investors with investment products advice and or planning investment consultants do in depth work on formulating investment strategies for clients helping them fulfill their needs and reach their financial goals many financial advisors and financial planners would be considered investment consultants investment consultants have experience in many different facets of the financial world and may work independently for a bank or an investment firm they are usually educated in a financial field have experience in the financial services industry and be licensed to work understanding investment consultantsan investment consultant works with clients to form an investment strategy clients may be individuals or businesses small businesses to larger corporations the investment consultant is responsible for reviewing the client s financial situation and formulating a plan to meet their goals their duties include actively monitoring the client s investments and working with them as their financial objectives change over time because of the nature of their work many investment consultants develop long term working relationships with their clients these financial professionals work in various settings including banks asset management firms and private investment companies or work independently they provide an essential service to their clients helping them organize their finances and improve their financial situation many investment consultants are experienced in tax and estate planning asset allocation risk management education savings and retirement planning experience and pay for investment consultantsbecoming an investment consultant requires a college degree and work experience some of the critical skills an investment consultant needs are problem solving math ability and communicating clearly and effectively this last skill is important because consultants may need to explain complex financial ideas to their clients and be objective in the face of emotion investment consultants receive remuneration by charging fees and or commission and may also receive a set salary payscale reported the average annual base salary for an investment consultant was 73 057 2the closest occupation to an investment consultant under the u s bureau of labor statistics bls is a personal financial advisor the median pay for a personal financial advisor in 2020 was 42 95 per hour or 89 330 per year the job market for personal financial advisors is expected to grow 5 from 2020 to 2030 1before you hire an investment consultant ask about their fees and fee structure and whether they receive any commissions types of investment consultantsinvestment consultants may fall into four main categories these are investment consultants including stockbrokers and banking representatives who are paid a commission to sell investment and insurance products they work for what is known as sell side firms financial organizations that create promote and sell financial instruments registered representatives typically hold a series 6 or series 7 license investment consultants who manage their clients personal finances are known as financial planners they may develop a financial plan to help a client manage college tuition fees qualified financial planners hold a certified financial planner cfp certified public accountant cpa or personal financial specialist pfs certification these investment consultants give general and personalized financial advice their compensation is based on charging fees and they typically hold a series 65 or series 66 license investment consultants who make investment decisions on behalf of a client are called money managers money managers work for buy side firms such as asset management firms fund managers or hedge funds qualifications for investment consultantsinvestment consultants usually have a bachelor s or graduate degree in a finance related discipline such as accounting business or economics although it s not a requirement they may also complete coursework in investments taxes risk management and estate planning in addition investment consultants may seek professional credentials such as the chartered financial analyst cfa or certified financial planner designation investment consultants must be licensed to work in the united states as always before working with an investment consultant check to see if their license is up to date and review their credentials before hiring one in the united states most investment consultants are licensed by the financial industry regulatory authority finra an independent regulator the securities and exchange commission sec oversees the activities of investment consultants from the government level choosing an investment consultantresearch an investment consultant s background before hiring their services review their compliance records and check for any serious breaches for instance check to see if they have been investigated for insider trading it s also prudent to check their fiduciary status and criminal record check an investment consultant s certifications to ensure they hold the correct licenses assess their education and association memberships to determine if they have the necessary experience and expertise before selecting an investment consultant it s always a good idea to organize an in person meeting to determine if they understand your financial goals and are accessible 