A financial advisor or financial planner is an individual who gives financial advice to clients according to their current financial status. In most countries, financial planners must first complete certain formal training and then be registered with a relevant regulatory body. The next step entails receiving formal certification from the relevant regulatory body. After getting certified, financial planners are allowed to practice on their own. This is considered to be the heart of the financial advisory industry because without it, there would be virtually no professionals around.
Most people start out as personal finance advisors or financial planners. They give their clients financial advice to help them achieve their goals in terms of retirement. These professionals also counsel families and individuals on what type of investments they should make so that they can reach their financial goals. Some advisors specialize in certain fields such as asset allocation, retirement plans, real estate, international business, investing in commercial real estate and more. There are even those who specialize in particular philosophies, like life happiness, financial planning, estate investment, family finance and more.
The main role of a financial advisor or planner is to help you reach your financial goals. One of these goals could be retirement. The primary objective of financial advisors or planners is to help their clients achieve a comfortable and safe retirement. For this objective, financial advisors provide investment advice and educate their clients on which investments could best suit them and their family’s goals for achieving retirement. Aside, from helping you achieve your goals through investments, financial advisors could also help you know when to sell or trade stocks to achieve your retirement or money management goals.
There are different types of financial advisers. Some specialize in offering investment advice. Others help individuals and families prepare financial portfolios. Many are self-employed and work on their own. Regardless of the type of financial advice from an adviser provides, it always entails setting and achieving financial goals.
How can a financial advisor to provide financial advice? This depends on whether it is provided through investment advice, or professional services rendered through legal counsel. In cases of investment advice, the main duty of the adviser is to assist their clients understand the ins and outs of investing and make wise investments that will most likely result into profit. Those who are preparing their own portfolios need this same kind of advice in order for them to ensure that they are meeting their financial goals. When it comes to legal counsel, the main duty of the lawyer is to advise their clients as to how they should achieve their retirement goals by consulting with tax experts, insurance agents and lawyers and other relevant people.
Robo-advisors, as these advisors are commonly known, are often hired by wealthy families and individuals to aid them with the creation and implementation of a financial plan. Robo-advisors are independent financial planners, who are often hired to perform tasks other than those required of a full-time planner. Full-time planners are required to devise and implement investment strategies, manage assets and create a retirement plan. Robo-advisors execute these tasks while working within the boundaries of an insurance company or investment management firm’s guidelines. Robo-advisors, just like any other employee in an organization, are required to abide by the company’s rules and ethics, work productively and exhibit good customer service.