A financial advisor or financial adviser is an expert who offers financial advice to potential clients based on his or her financial expertise. In most countries, financial advisors are required to complete certain educational training and obtain a license in order to offer financial advice to customers. While most people think of financial advisers as stockbrokers or financial planners, advisors actually have many different roles in the financial services industry. Here are some of the other important functions that financial advisers perform.
They assess and recommend a client’s financial goals and objectives. Clients typically come to advisors for advice on how best to achieve their financial goals. For example, if a person wants to buy a new car or house, the financial advisor will help them find a car with the maximum efficiency and in the lowest possible cost. If someone wants to travel around the world, the advisor can help him or her set up a retirement account so that their wealth is protected in the event of something happening. In some cases, financial advisors may even help their clients set up a limited liability company (or LLC) that is used as their main source of income in case something happens while they are working on their business goals.
Apart, from helping their clients find the best vehicle for their money, financial advisors perform other important roles as well. Some advisers become brokers, helping individuals buy and sell different types of securities. This is important because different types of securities have different risk/reward values. Other financial advisors provide investment advice, which is slightly different from advising a client on how to buy and sell stocks. While both types of advice are important, investment guidance requires a much more complex analysis of a person’s financial portfolio.