Financial Advisor, Do I need one?

Financial Advisor, Do I need one?PolicybazaarAverage Rating / 5 ( reviews)
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Ever wondered what do financial advisors do with all your money and how do they decide the correct course of action for your earnings? In general financial advisor is a wide term that is used to address a broad variety of professionals and services that include financial planners, investment managers, relationship managers, and financial consultants, etc. to keep it simple financial advisors provide assistance and complete management solutions for your finances.

A lot of people struggle in prioritizing their long and short term financial goals, for individuals stuck in similar situations financial advisors draft a plan of action and provides assistance and guidance on how to save and where to invest to create wealth.

Financial advisors contribute by bringing an expert view to your finances. Financial advisors provide resolutions by taking a holistic view of your financial situation and assessing the scope for improvements. Very often, financial advisors help in navigating complex financial subjects like real estate planning, repaying debts and taxes.

Today’s article will be centered on financial advisors, their services and the need for consulting a financial advisor.

What is a financial advisor?

A financial advisor is a professional who suggests and provides financial services to their clients depending on their financial portfolio. Financial advisors have to complete their training and need to hold a license for working professionally as an advisor.

Your financial goals might include saving for children’s education and marriage, minimizing the tax burden, charity, creating wealth, debt reduction, etc. Financial advisors have several specialties, but the main part of their job is to guide you to invest your earnings in a way that will help you to reach your financial goals. Apart from helping you reach your financial goals, a financial advisor helps you to understand and decode the strategies behind the decisions and acts as your planning partner.

A financial advisor is also a financial educator. As mentioned earlier apart from guiding you through your investment journey a prominent part of an advisor’s job is to help you to gain a clear understanding of what is involved in meeting your long term financial goals.

What do Financial Advisors do?

The services offered by financial advisors will vary depending upon the type of advisor you choose and your current financial situation. The first and foremost part of financial planning is to understand and assess your current financial situation and health. To plan your future you need to analyze your current status. The financial advisor does this job using a detailed questionnaire. Your answers help the advisor to assess your current financial portfolio and provide suggestions for the future based on it. A good financial advisor will enquire about your long term and short term goals and help you to create a plan to reach your goals. Advisors will make various calculations to tell you how much you’ll need for your retirement years, for paying off your mortgage, etc. Financial advisors help you to make investments in Dubai by recommending investment plans or products or providing complete management solutions.

Types of Financial Advisors

As mentioned earlier financial advisors refer to a wide variety of people, the various type of professionals that are classified as financial advisors are mentioned below-

  • Certified public accountants undergo rigorous training and studies to qualify as a professional advisor. The primary job of CPAs is to help investors with tax saving, accounting, business services and consulting.
  • Personal finance specialists are experts who have relevant education and experience in the field. PFAs help you with much broader financial planning not just limited to accounting.
  • Registered Investment advisors are professionals that specialize in managing the wealth and assets of individuals with high net worth. They work primarily on behalf of mutual funds, endowment funds, commercial banks to help those individuals to make more wealth and money.
  • Certified financial planners pass various exams to get certified. Moreover, CFPs need to have work experience in the relevant field. CFPs specialize in taxes, retirement planning, and real estate planning.
  • Charted Financial Analyst primarily works in stock analysis for financial institutions, not individuals.

Do I need a Financial Advisor?

Since you’ve clearly understood that who is a financial advisor? What does a financial advisor do? Now we’ll talk about the potential need of financial advisor.

The question ‘Do I need a financial advisor’ can be answered best by an investor himself some of the reasons to consult a financial advisor have been mentioned below.

Financial advisors keep you on the right track with your investment plan or product; they help you by guiding you through your investment journey and suggest the best available investment options for you. Consulting a financial advisor helps to rebalance your investments in Dubai. Opting services from a financial advisor help you to save time and reduce stress by providing correct guidance related to your financial portfolio.

In a Nutshell

A good financial advisor can be of immense utility if you’re able to create wealth and save your hard-earned money. A financial can help you feel more secure finally which can provide you the opportunity to live your to the fullest without worrying.

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