Financial advisers offer financial advice to their clients to help them achieve their financial goals in the most efficient way.
They also make the necessary arrangements and procedures to carry out the financial activity if the client so wishes. Clients can request investment advice in the short, medium or long term.
They advise on products of the financial market as a whole, and are not linked to a single company.
Products they advise on include:
- Mortgages (loans to buy a property).
- Life insurance and income protection policies.
- Savings accounts.
- Mutual funds.
- Investment trusts.
- Open investment companies.
New products are constantly appearing, and there are many different vendors, so financial advisers need to stay up-to-date on all the news. Some specialize in one area, for example, retirement planning.
When you meet a client for the first time, the advisor should discuss the client’s current situation and help you identify their specific financial needs. You must also know the level of risk the client is willing to take when investing money to achieve those goals.
For example, with regard to sickness benefits, a self-employed or employed person may need the financial advisor to make financial plans that provide them with an income in case of illness, as well as the creation of an account for their retirement. Someone else may want to set up a savings plan to help pay for their children’s college or college education, for example.
The financial advisor may have to travel to the client’s home or workplace for meetings, although most client meetings take place in the office.
Once the client’s needs have been identified, the financial advisor researches the financial market to find the right products and recommends different options to the client. The consultant may ask the advisor to carry out such recommendations (for example, to manage such policies) or to further investigate.
Independent financial advisers are required by law to maintain a separate file for each client, with notes from all meetings, and must keep copies of all correspondence. They should also keep detailed files covering the research they have conducted on the products and supplying companies, showing the factors used by the assessor for evaluation and the suitability of the client. The advisor might have one or more helpers do this job for them.
For recommended products, the advisor should write a detailed explanation of the reasons behind their decisions, how they respond to the particular needs of each client, and the financial risks involved.
Many advisors provide a comprehensive financial planning service to their clients.
Comprehensive financial planning is a professional service that consists of developing strategies for clients who need impartial help in organizing their personal or business financial affairs to achieve maximum performance.
Advisors who work as financial planners aim to help their clients define, review, and achieve their financial goals with less risk and cost than if they were trying to do it themselves.
A typical financial plan contains some or all of the following reports, in which the financial advisor makes professional recommendations:
- Life insurance planning.
- Cash Flow Planning.
- Investment planning.
- Personal risk planning.
- Personal protection planning.
- Tax planning.
- Retirement planning.