There are persons, who provide valuable advice on savings; income planning, different types of insurances, etc are called as financial advisor. Business and government too require the support of such financial advisors. They make the customer understand about the strength they have with them and then how to distribute that asset properly to balance the capital gains and investment income. In order to come across the requirements of the clients required information about the products like the mutual funds, bonds, future plans, etc. should be given by the financial advisors. A commission is given to the financial advisor for the financial product offered to the clients. The financial advisors are either payment based or only payment no commission will be expected by the advisors. Fee based advisors collect fee as well as commission from the respective product or service provider whereas fee only advisors do not collect any type of commission other than fee charged. There are financial advisors who accumulate only payments from the client on the resources managed. Before giving any type of advice on any products to the clients it is the duty of the financial advisor to understand what the financial status of the client is and how strong he is financially. They should also ensure that the client is maximum benefited within a limited period with minimum risk. They should be able to make it practically possible by using different investment products or tools like mutual funds, bonds, etc and also by using different policies. Most of the advisors mainly focus on retirement schemes. In order to calculate the amount that may be received by the client at his retirement the advisor makes an assessment of the existing income. He also evaluates the expected price rise, tax liabilities and the possible returns on investment. The main job of an advisor other than this is to see that he gives the client a better approach of doubling the money received on investment without putting him in any type of headaches. A better investment is advised either for a short term or for a long term by understanding the client’s purpose and the intensity of risk he can take. Longer term investment means result unpredictable with high risk which can be achieved by investing in mutual funds, stocks, etc. Chances of profits are more in such cases. Short term bonds, certificates of deposit, etc are short term goals and the risk of unpredictability is less in such cases. The risk as well as the profit returns is less. The chances of losing the principle amount are very less in such cases. But short term goals also have the fear of being affected by inflation’s as periods pass by.