*What is the difference between investment advisors and financial advisors?
The term "financial advisor" is a broad term that can used by just about anyone. I've seen bankers, insurance agents, stock brokers, and even accountants claim this title. Investment advisors, on the other hand, are regulated and permitted to help clients select investments for compensation. By law, regulated investment advisors are fiduciaries, which means they must act in their clients' best interest and properly disclose any conflicts of interest. Investment advisors may call themselves financial advisors, though many will opt for a more prestigious title. But other financial advisors may not refer to themselves as investment advisors.
Technically speaking, the regulated term Registered Investment Adviser (RIA) [note the spelling of "adviser"], refers to a company providing advisory services, and the advisory staff are called Investment Adviser Representatives (IARs). *editing to add* You can search for RIA firms on the SEC's website at: https://adviserinfo.sec.gov
*What are your best tips on finding the best investment advisor for your needs?
There are literally tens of thousands of RIA firms, and many of them can work remotely. Still, searching locally can be a good way to start. A local advisor should understand the financial implications of living in your state. I would recommend meeting with more than one firm to see who you might prefer to work with. Some advisors have a minimum, so be sure to look out for this on their website.
*What are some red flags?
In the fine print, when you see "advisory services offered through..." and then a different company, it means the advisor is representing two different firms. Sometimes they're a fiduciary under their RIA. Other times they're selling commission-based products through their another firm. This creates conflicts of interest because they may have incentives to switch between roles depending on which pays better. The red flag is when an advisor isn't 100% clear about which role they're acting in. Ask directly: "For each recommendation you make, will you tell me if you're acting as a fiduciary and exactly how you'll be compensated before I make any decisions?" A trustworthy advisor should answer transparently and put everything in writing.
*When is an investment manager better than a robo-advisor and why?
Robo-advisors offer what I call a one-size-fits-none approach. They can't handle the complexities that emerge in real financial lives like coordinating multiple accounts, managing concentrated risk, or planning for major life changes. What's worse, many large advisory firms also operate the same way. They plug your information into simple models and generate generic portfolios with minimal customization. Independent boutique advisors can truly personalize because they're not constrained by corporate-approved investment lists or pressured to use proprietary products.