What is a Fractional Advisor?

A fractional advisor, also known as a fractional financial advisor or fractional wealth manager, is a type of financial professional who provides advisory services to clients on a part-time or fractional basis. Unlike traditional financial advisors who typically require clients to have a substantial amount of investable assets, fractional advisors offer their expertise to a broader range of clients, including those with smaller portfolios.

The term "fractional" refers to the fact that these advisors work with clients on a fractional or partial basis, often charging fees based on a percentage of the client's assets under management. This differs from the traditional model where advisors typically charge a fixed fee or a percentage of assets under management regardless of the client's portfolio size.

Fractional advisors may provide various financial planning and investment management services, such as assessing a client's financial goals, creating an investment strategy, managing investment portfolios, providing tax planning advice, and offering retirement planning guidance. They can also provide ongoing monitoring and rebalancing of investment portfolios to ensure they align with the client's objectives.

By offering their services on a fractional basis, these advisors aim to make professional financial guidance more accessible to individuals who may not meet the minimum requirements of traditional advisors. This can be particularly beneficial for young professionals, individuals with smaller investment portfolios, or those who prefer a more flexible arrangement with their financial advisor.

It's important to note that the specific services, qualifications, and regulations surrounding fractional advisors may vary depending on the jurisdiction and the specific advisor or firm.