When someone manages your money, what you call them depends on what they actually do and how they got the authority to do it. If you hired them, the common titles are financial advisor, wealth manager, portfolio manager, and investment broker. If they are handling money for someone who cannot, through a legal document or court order, the titles are power-of-attorney agent, trustee, executor, or conservator. Each title carries its own duties, its own pay structure, and in some cases its own legal obligation to put your interests first.
Titles for Professionals You Hire
Four labels cover most of the people in this business, and the differences between them are real.
A financial advisor is the broadest title. Financial advisors help with retirement planning, savings strategies, insurance decisions, and general investment guidance. The term itself is not regulated. Almost anyone can call themselves a financial advisor regardless of credentials, which is why checking registration and certifications matters.
A wealth manager handles more complex financial lives. Wealth management usually bundles investment management with estate planning, tax strategy, and coordination with attorneys and accountants. These professionals tend to work with clients who hold higher asset levels and need several financial disciplines working together.
A portfolio manager focuses specifically on selecting and overseeing investments — stocks, bonds, and funds — to hit a particular target return or risk level. Portfolio managers make the day-to-day buy-and-sell decisions inside your accounts, and their performance is measured against market benchmarks.
An investment broker, sometimes called a broker-dealer representative, acts primarily as an intermediary who executes trades you request or recommends specific securities. Brokers have historically been paid through commissions on each transaction rather than ongoing advisory fees, which produces a different set of incentives than a flat-fee advisor.
The titles overlap in practice. One person at one firm might wear more than one of these labels, and some firms use “advisor” as the catch-all even when the person is really a broker. What settles the question is not the business card but the legal registration behind it.
Fiduciary Adviser or Broker? The Distinction That Actually Matters
This is the single most important difference among people who manage money, and most clients do not know it exists. Not every financial professional is legally required to put your interests ahead of their own.
The Fiduciary Standard for Investment Advisers
Registered Investment Advisers (RIAs) are regulated under the Investment Advisers Act of 1940, which imposes a fiduciary duty requiring the adviser to act in the client’s best interest at all times. The obligation has two parts: a duty of care, meaning the adviser must investigate investments before recommending them, and a duty of loyalty, meaning the adviser must disclose and either eliminate or mitigate conflicts of interest.1Securities and Exchange Commission. Commission Interpretation Regarding Standard of Conduct for Investment Advisers
The law prohibits investment advisers from using any scheme to defraud a client, engaging in any practice that operates as a deceit, or secretly trading for their own benefit using a client’s account.2Office of the Law Revision Counsel. 15 USC 80b-6 – Prohibited Transactions by Investment Advisers Violations do not require proof that the adviser intended harm. Even negligence can trigger enforcement.1Securities and Exchange Commission. Commission Interpretation Regarding Standard of Conduct for Investment Advisers
Regulation Best Interest for Broker-Dealers
Broker-dealers used to operate under a lower “suitability” standard, which only required that recommendations generally fit the client’s profile. That changed on June 30, 2020, when the SEC’s Regulation Best Interest took effect. Broker-dealers must now act in the retail customer’s best interest at the time they make a recommendation, without placing their own financial interests ahead of the customer’s.3Securities and Exchange Commission. Regulation Best Interest
Reg BI requires broker-dealers to satisfy four obligations: disclose material facts about the relationship and any conflicts, exercise reasonable diligence and care in making the recommendation, establish written policies to address conflicts of interest, and maintain compliance procedures.3Securities and Exchange Commission. Regulation Best Interest
The practical difference is timing. An RIA’s fiduciary duty is continuous and applies every moment of the relationship. Reg BI applies at the point of recommendation. A broker-dealer does not owe you an ongoing duty to monitor your portfolio or flag when your situation changes. If you want someone watching your accounts year-round with a legal obligation to act in your interest the entire time, you want a fiduciary adviser, not a broker.
Titles for Managing Someone Else’s Money
Sometimes the question is not “who should I hire?” but “who is authorized to handle finances for someone who cannot?” These roles come from legal documents or court orders, and each carries strict obligations.
Power of Attorney Agent
A financial power of attorney is a legal document that authorizes someone — called the agent or attorney-in-fact — to make financial decisions on another person’s behalf. The authority can be broad, covering everything from paying bills to selling real estate, or limited to specific transactions. A “durable” power of attorney stays in effect even if the person becomes mentally incapacitated, which is why estate planning attorneys almost universally recommend one. Without it, the family may have to petition a court for authority to manage finances if the person cannot.
Trustee
When assets are placed into a trust, the trustee manages them according to the trust’s written terms for the benefit of the named beneficiaries. A trustee can be a family member, a friend, or a professional trust company. The role carries fiduciary obligations: invest prudently, keep trust assets separate from personal assets, maintain detailed records, and account to beneficiaries for all transactions.
Executor
An executor, sometimes called a personal representative, is named in a will to settle a deceased person’s estate. The job is to gather assets, pay debts and taxes, and distribute what remains to beneficiaries. If someone dies without a will, the probate court appoints an administrator to perform essentially the same function. Executors typically must obtain formal authorization from the court, often called Letters Testamentary, before they can access accounts or transfer property.
Conservator or Guardian of the Estate
When a court determines that someone cannot manage their own financial affairs due to disability, cognitive decline, or other incapacity, it may appoint a conservator — called a guardian of the estate in some states — to take over. Unlike a power of attorney, which the person sets up voluntarily in advance, a conservatorship is imposed by a court and includes ongoing judicial oversight. The conservator typically must file periodic accountings with the court showing how the person’s money was spent, and the court may require a surety bond, essentially insurance protecting the incapacitated person’s assets if the conservator mismanages them.
All of these roles carry real legal exposure. Mismanaging funds in any fiduciary capacity can lead to personal liability, removal by a court, and in extreme cases criminal charges.
Certifications Behind the Title
Because almost anyone can call themselves a financial advisor, professional certifications are often the clearest signal of training and ethical commitment. Three come up most often.
- CFP (Certified Financial Planner). Requires a bachelor’s degree, passage of a comprehensive exam administered three times per year by the CFP Board, and adherence to a fiduciary standard. CFPs cover broad financial planning topics including retirement, insurance, tax, and estate planning.
- CFA (Chartered Financial Analyst). Requires passing three progressively difficult exams focused on investment analysis, portfolio management, and economics. The CFA charter is widely considered the gold standard for investment management professionals.
- ChFC (Chartered Financial Consultant). Requires at least three years of financial planning experience and completion of coursework through The American College of Financial Services, without a single comprehensive exam. ChFC holders are governed by The American College Code of Ethics.
A certification does not guarantee good outcomes, but it tells you the person cleared a meaningful educational bar and agreed to enforceable ethical standards. Ask any prospective manager which designations they hold and verify them directly through the issuing organization.
How the Title Tracks the Fee Model
How a money manager gets paid often lines up with what they are called, and the pay structure shapes what they recommend.
Assets under management. The most common structure for ongoing investment management is a percentage of assets under management (AUM). The median for a human adviser runs around 1% annually, with fees often dropping to 0.50% or lower on larger portfolios through tiered schedules. Robo-advisors, which are automated platforms with limited or no human interaction, typically charge 0.25% to 0.50%. On a $500,000 portfolio, the difference between a 1% fee and a 0.30% fee is $3,500 per year.
Flat fees and hourly rates. Some advisers charge a flat annual retainer, commonly ranging from $2,500 to $9,200 per year for comprehensive planning and investment management. This model removes the incentive to gather more assets and can work well for people whose wealth is tied up in real estate or a business rather than liquid investments. Hourly rates for one-time financial planning projects typically fall between $200 and $400 per hour.
Commissions. Brokers who earn commissions get paid each time they execute a trade or sell a financial product. More transactions mean more income for the broker regardless of whether the trades benefit you. Commission-based compensation is not inherently bad, but you should understand the incentive and monitor whether your account shows unusually high trading activity.
Ask any prospective manager directly: how do you get paid, and by whom? If the answer is unclear, that is a reason to look elsewhere. Every adviser registered with the SEC must disclose their fee structure in Part 2A of Form ADV, so the information is available even if the manager does not volunteer it clearly.