Financial Advisor

    1. What is Finance?

      To start with, what is finance? This may seem silly, but the most basic concepts are also the deepest ones with which experts love to play and try to systematize.

      Finance refers to the exchange of goods and services in the form of one currency, or management of money through investing, saving, borrowing, lending, maintaining income statements through activities like bookkeeping and accounting to record the net profit, and loss of a company. The process of acquiring the required funds also constitutes finance.

      Whether it is an individual or business or government entity each of these need funding to operate so finance is classified into three main types: Personal, Corporate and Public finance.

      A balanced financial situation is the one in which the imports(revenue) is equal to or greater than the exports (expenses).  A perfect balance between exports and imports is beneficial for fruitful trading and, therefore, for everyone’s prosperity.

      To achieve this balance, the entity needs to maintain the record of all transactions and exchanges made to know about the status of finance and ways to modify it to achieve balanced profitable state.

    2. What is a Financial advisor?

      Now that we know about the basic concept of finance, next is who is a financial advisor and what is his role?

      The term financial advisor is used to describe someone who provides financial guidance to clients to help them achieve and maintain financial equilibrium. They also assist them by providing a concrete plan to achieve their goals with savings.

      The financial advisor is the one who keeps in-depth knowledge on economical situations of various markets and helps you in taking the right decision with the required capital.

      In order to provide you with the right financial plan, they collect detailed information about imports, exports, and your objectives.

    3. Financial advisor meaning

      In short, the meaning of a financial advisor could be explained as a professional who offers specialized financial advice and services to individuals, businesses, and government institutes.

      These services may include investment advice, such as pension planning, portfolio review, asset allocation, insurance sales, estate planning, and retirement plan management, etc,.

    4. Financial Advisor Types

      Types of financial advisors are broadly classified into the following:

      1. Accountant
      2. Insurance Agent
      3. Attorney
      4. Financial Planner
      5. Investment Advisor
      6. Debt Counselor
      7. Money Coach
    5. What does Financial advisor do?

        • Here is the description of what each kind of a financial advisor does?
          1. Financial Advisor type 1 – Accountants

      The job of an accountant is to handle the financial affairs of the company or the client for whom he works. However, this can include a lot of different responsibilities, depending on the type of accounting that is performed. There are four main fields in accounting, each with separate responsibilities and specialties. These fields are public accounting, administrative management, government accounting and internal audit.

          1. Public Accountants

            Public accountants will work for a public accounting firm or have their own business. They perform tasks such as accounting, auditing, consulting and tax-related tasks. They often work for corporations, governments, non-profit organizations or individuals.

            It is expected that most public accountants have a license and are certified public accountants (CPA). And although this is not a requirement, CPAs are generally more competitive for jobs and higher salaries.

            To receive a CPA, you need to have a bachelor’s or master’s degree in accounting or a related business field.

          2. Administrative management

            Management accountants are also referred as industrial, corporate or private accountants. They often work for larger companies or corporations with a team of executives involved in strategic planning.

            The main responsibility of an administration accountant is to record and analyze the financial information. Often, this means interpreting the financial information of executives so they can make informed business decisions.

            The administrative accountants will also prepare financial reports for shareholders, creditors, tax authorities and regulatory agencies. Other jobs that a management accountant might have include budgeting, cost management, asset management, and performance evaluation. If you work within an accounting department, a management accountant can focus on a particular area, such as financial analysis, cost accounting or planning and budgeting.

          3. Government accounting

            A government accountant can work for a state, local or federal government. The job of a government accountant is to keep records of government agencies and audit private companies and people who are subject to government regulations and taxes.

            In other words, government accountants are responsible for tracking the financial affairs of a government agency and taking note of the companies that do not comply with current regulations.

            The counters of the federal government can also work as agents of the Internal Revenue Service, in examinations of financial institutions, financial administration or analysis and administration of budgets.

          4. Internal auditors

            Internal auditors analyze and verify the accuracy of the records of an organization in search of mismanagement, waste or fraud.

            Internal audit has recently become a more expansive position, with many more accountants seeking employment in the field.

            Internal auditors can work for a variety of companies and organizations and are important in evaluating the finances of these companies.

            They protect companies against fraud and other harmful financial practices by checking records and ensuring they are efficient, comply with legal regulations and do not contain errors.

        1. Financial Advisor type 2 – Insurance Agent

          Most people have at least some types of insurance: health insurance, automobile insurance or home insurance. Determining how much insurance you need, and which company can offer you the best offer, can be a difficult and time-consuming process.It is at this point of time that an insurance agent can help you. Insurance agents earn their money selling insurance policies, but that is not all they do.

          Since they know everything about the insurance business, they can inform you about the different types of insurance and what you need depending on your situation. Some insurance agents can also help you find the  best offer from companies.

        2. Financial advisor type 3 – Attorney

          A lawyer can help you with

          1. Establishing your new company
          2. Purchase or selling of any kind of estate
          3. In dealing with legal situations related to financial management such as bankruptcy
          4. Writing or modifying a will
          5. Protect your assests.
          6. Establish a durable power of attorney to give another person control over financial or medical decisions
        3. Financial advisor type 4 – Financial planner

          The financial planner can help you with smartly planning out your expenses. If you need to save your money or invest for retirement, he can advice on such matters. They also advice on taxes and estate planning.

        4. Financial advisor type 5 – Investment advisor

          The investment advisor advice the clients solely on choosing the best investment. He is specifically related with investment counselling. He does not focus on tax and other matters as financial planner does.

        5. Financial advisor type 6 – Debt counseller

          The debt counsellers can help clients in dealing with their heavy loans. They make a plan on how to pay off their debts quickly. In some cases the counsellers become an intermediate between the client and the creditors. They work to lower the interest that one has to pay.

        6. Financial advisor type 7 – Money coach

          A money coach can help to

          1. Recognize your financial goals
          2. Find out where your money is going and how you can preserve it.
          3. Monitor your budget
          4. Make financial decisions
          5. Control your unhealthy expenses
    6. Qualifications for financial advisor

      The minimum financial advisor requirements / qualification is a bachelor’s degree, usually in finance, business, economics, accounting, statistics, or a similar field.

      Financial advisors should be capable of understanding the financial goals of their clients or institutes.

      Different financial advisor certifications, such as Certified Financial Planner (CFP) or Chartered Financial Consultant (ChFC) will be of great help.

      Plus, a master’s degree in finance or a related subject can serve a competitive advantage with the Financial advisor degree achievement.

    7. How to become a financial advisor?

      Simple Steps To Becoming A Financial Advisor:

      1. Obtain a bachelor’s degree in finance, business, economics or related fields. Some companies may proceed with the graduation degree while some look for MBA candidates for better work. So, if possible earn become an MBA holder for easiness in your objective.
      2. Go on an internship to add it in your skills and experience list. It makes you familiar with the real world expectations and issues that generate in working as a financial advisor.
      3. Along with gaining experience in interns, take some specialized courses to make your resume outstanding. You may take one or all of these courses: Chartered Financial Analyst, Chartered Financial Consultant, Certified financial planner, Personal Financial Specialist, Registered Investment Advisor training. Obtaining the teachings of an established advisor is important to start your profession. These crucial areas require you to obtain Licensing, to be considered a genuine financial adviser.
      4. Create your best resume with all the information related to you, your skills, hobbies and experience. Do some study on how to create good resume and cover-letters. Make use of social networks to upload your resume and search relevant job. You may also take help from your educational institute for campus selection. Consulting companies and financial institutions could also help with with better start up professions.
      5. It is very important to start with the best possible company and work you can find so that you have the best possible opportunity for achievements and promotions in future.
      6. Depending on your work of interest and your potential you may consider applying in posts, such as CFA, CFP, RIA, ChFC, etc.
    8. Financial advisor salary

      How much does financial advisor make? You might be curious to know about it. So, the average national salary of a financial advisor is $ 47,380 in the United States.

    9. Financial advisor job description

      The financial advisor career has both pros and cons just as everything has it’s own meits and de-merits. It is the career with unlimited income potential. Once the advisor get’s established in it he shall experience flexibility in his working hours. They get an opportunity for improvement of their creativeness. On the dark side, it is a high-stress industry. You will have to handle pressure and control emotions. Must  be licensed to offer advice, buy or sell products to clients.

    10. Do I need a financial advisor?

      If you have problems with money or finances and have regular income and expenses, you should seek the expert advice that financial advisors have to offer.

      If you have additional time, like dealing with money and learning about market trends, or already understand a lot about finance, then you can probably take care of your own monetary situation.

      Always choose an accredited professional or someone with a lot of experience and regular and satisfied clients, if you have the option. You can achieve financial liberation.

    11. How to Choose a Financial Advisor?

      If you are confused with choosing a financial advisor for yourself, here are some useful  tips that you may consider before appointing a financial advisor:

      1. Financial Goals: Note down your financial goals.
      2. Credentials: Look for the certifications of the financial advisor
      3. Experience: Check out his experience and how popular he is?
    12. Online Financial Advisor

      You find many online advisor services these days. You get to meet individuals serving from different parts of the world with different talents. One could take their time analyse and decide which is the best and suitable for them.

    13. How much does financial advisor cost

      It varies but most of the financial advisors charge between 1000$-2000$ per client. You may also need to fix a monthly Financial advisor pay expenses.

    14. More about Financial Advisors

      Independent Financial advisor

      As per wikipedia, Independent financial advisors are professionals who offer independent advice on financial matters to their clients and recommend suitable financial products from the entire market. The term was developed to reflect a regulatory position in the United Kingdom and has a specific meaning in the United Kingdom, although it has been adopted in other parts of the world, such as Hong Kong.

      The term “Independent Financial Advisor” was coined to describe counselors who worked independently for their clients instead of representing an insurance company,  or a bank. At that time (1988), the government of the United Kingdom was introducing the polarization regime that obliged the advisors to be linked to a single insurer or product supplier or to be an independent professional. The term is commonly used in the United Kingdom, where IFAs are regulated by the Financial Conduct Authority (FCA) and must meet strict qualification and competence requirements.

      Normally, an independent financial advisor will conduct a detailed survey of a client’s financial situation, preferences and goals; This is sometimes referred to as a ‘factfind’. The assessor will then recommend the appropriate action to meet the client’s objectives; and if necessary, recommend an adequate financial product to meet the client’s needs. Individuals and businesses consult IFAs on many issues, including investments, retirement planning, insurance, protection and mortgages (or other loans). The IFAs also advise on some fiscal and legal matters.

      Personal Financial Advisor

      The personal financial advisor is the one helps the individually personally to manage their finances. He keeps their dealings secret, does not disclose to anyone.

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