What Does A Financial Advisor Do

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By : Admin
Guide 04/06/2018 03:01pm
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When it comes to saving your hard earned money, there are several choices. You can either put the money in the bank or invest it. For a common man it can be hard to decide where and how much you should invest and how much you should save in the bank. So, if you want to make things easy then take the help of a financial advisor, who has specialist knowledge of investments, money management and savings. Their job is to help you plan for your short as well as long-term financial goals, such as buying a house, paying for children's education, retirement and so on. In order to give financial advice, an advisor must be professionally qualified and follow strict financial industry rules. Financial advisers are also known as wealth managers and financial planners. So, let us learn more about what a financial advisor does.  

Basically there are two different types of financial adviser and advice- independent and restricted. Independent financial advisers (IFAs) will research all retail investment products ahead of considering one for you. They should provide unbiased advice to all their clients. While, restricted financial advisers will offer limited advice and only focus on a particular range of products. Advisers would let their clients know if they provide independent or restricted advice beforehand.

Some of the task of financial advisers includes-

  • Contact clients and set up meetings
  • Conduct in-depth evaluation of the financial circumstances, current provision and future aims of the clients
  • Analyse all information and prepare a plan that best suits individual clients' requirements
  • Analyse all the risks
  • Research the marketplace and inform clients about new products and services
  • Design financial strategies
  • Provide information and assistance so that clients can make informed decisions
  • Research information from various financial product providers
  • Review as well as respond depending on the changing needs and financial circumstances of clients
  • Promote and sell financial products
  • Negotiate with product suppliers for best rates
  • Communicate with other professionals like estate agents and solicitors
  • Keep the clients up to date with financial products and legislation
  • Produce financial reports

As per your needs you can find financial advisors specialised in area such as risk management or retirement, though most of the advisors offer advice on a wide range of topics. After they have invested your funds, you will get regular reports of your investments. Your financial advisor will monitor your investments and meet you at least once a year to update about your potential investments. They may also adjust the financial plan if there is any change in your circumstances or if the investment options have changed.

Mostly all financial advisors spend a lot of time marketing their services. They also give seminars to meet potential clients. There are several financial advisors who are licensed to buy and sell financial products, such as bonds, stocks, insurance and annuities directly. Depending on the agreement that the financial advisor have with their clients, they may have the permission to make decisions related to buying and selling of bonds and stocks.

Basically, wealth managers and private bankers are some of the personal financial advisors who work for clients who have a great deal of money to invest. Such clients are generally institutional investors and approaches investing very differently from the common public.

So, if you are looking for help with a financial decision it is worth to choose a financial advisor. An experienced adviser will help you save money as well as a lot of worry. Once you have learned about how a financial advisor works, your next step should be to find an advisor depending on what type of advice you need. Personal recommendation from family and friends can be a great way to find a financial adviser.