Selection of the right person for managing your personal finances is one of the most crucial decisions you will be making. You entrust the job of managing your hard-earned money to an advisor with a hope to make use of his or her financial expertise. So, he or she should help you get solutions and reach your financial goals by preparing the right plan for you and also discovering the suitable investment plan for you. In fact, you are driven to seek the help of financial advisors to get serviced by them, with their professional caliber and integrity.
Desirable Duties A Financial Advisor:
1. The first and foremost desirable duty that a financial advisor (FA) should perform is to help his or her clients to make the appropriate investment choices based on an in-depth review of his or her clients’ financial circumstances.
2. A financial advisor should guide his or her clients to remain steadfast and committed to their financial strategies.
3. A financial advisor should guide his or her clients by caring that they are never carried away by excessive euphoria or pessimism about any financial offer.
4. A financial advisor should monitor and review the portfolio of his or her clients on a regular basis and manage them to keep them seamless.
5. A financial advisor should let his or her clients know the latest changes and developments in the financial world and help to visualize them their possible impacts on their investments.
6. A financial advisor should support his or her clients in documentation and paperwork related to their investments.
When You should approach a Financial Advisor:
You may have the capacity to invest, but you don’t have the idea which financial plans would be more profitable for you. In such circumstances, people like you need to be clear about a few things before they start their search. They are as follows.
1. Make sure if you have proper investment capacity. If yes, you should go to a financial advisor.
2. If you want to secure your investment with right investment planning, you need to seek advice of a financial expert.
3. When you have little bit understanding of the financial market and its products and have no idea how and where to invest, you need to seek advice of a financial expert.
4. Even if you have the capability of making your own investment decisions, you need to select someone who is expert to draw up a financial plan in sync with your financial capacity and goals.
5. As financial experts perform financial documentation and paperwork more professionally, you should seek their advices. However, the execution part of the financial planning should always be left to your discretion.
6. You need to go to a financial expert when a new financial plan is launched or when you need to save you from paying hefty taxes.
Types of Financial Experts:
There are typically three types of financial advisors. They are as follows.
i) Independent Financial Advisors (IFA or Agents)
ii) Relationship & Wealth Management Officers (RWMO)
iii) Qualified Financial Planners (QFP)
IFAs work independently, as the very name signifies. They are keener on maintaining long-term relation with their clients and are also committed to deliver quality services to their clients. Relationship and wealth management officers are associate members of financial institutions like banks or large distributors. RWMOs usually offer a large variety of financial products, but they are choosy about the profiles of their clients. They prefer to deal with HNI (High Networth Individual) clients only. The QFPs help to draw up bespoke financial plans for their clients. They can customize financial plans in accordance with the financial needs and goals of their clients because of their deep understanding of a comprehensive range of financial market. Although the right to execute a plan is absolutely up to the clients only, all these financial experts help in executing the plans.
To choose a financial advisor, clients should meet them and discuss all necessary and relevant points with them. Most importantly, clients should ask them for revealing their point of views regarding current investment opportunities and possible growth of a fund which they may be advising them to choose from many. During discussion, clients should compulsorily seek to identify if the FA is better than other FAs, what advisory process they are following, if they evaluate and monitor investment market regularly, or whether they keep their clients updated about market developments, and if they review the portfolios of their clients meticulously. Bear in mind, the financial market is rich in all aspects itself and that is needless to say, as needless to remind you that you will have hundreds of financial experts available in the market to choose from.