Whenever a person visits a bank or any investment company, he meets a financial advisor whose primary job role is guiding clients in handling financial matters. A financial advisor should have enough knowledge of the current economic situation. He should have a fair idea about different types of investment instruments so that he can help a person who needs investment advice.
However, if you like this job profile and become a financial advisor, you must know briefly about this profession.
Who is a financial advisor?
A person having adequate knowledge about the country’s present economic condition and the entire several investment instruments can become a financial advisor. Basically, they are well practised over the finance part and know the proper way of handling cash so that principal will turn into a double. This type of advisors also becomes very useful for growing companies. Entrepreneurs also can get help by taking consultation from them.
What are the key roles of this job?
- The job of an advisor is not limited up to just showing his client a way, but he is liable to more than that. Apart from providing guidance, he has to find useful traders for budding entrepreneurs and good business deals for growing companies.
- Along with the guidance, the instructor needs to design a suitable financial blueprint for clients. Remember, there is no uniform blueprint for all clients. It varies from investor to investor and their financial goals.
- Being a financial mentor, the job does not end up even after designing an investment plan. A financial planner needs to take care of savings too. The client can ask his planner to help him making a budget so that he can control expenses. He can also ask his advisor to suggest some tax-saving tactics.
- When a financial advisor designs a financial plan for his customer, it may generally last for a minimum of 5 years. During those 5 years, the advisor should follow up with his client so that he can check the blueprint suits best for that person.
When does a person look for a financial instructor?
Let us think about specific scenarios where a financial instructor is required:
- A person in his 30s and unable to understand where to invest excess cash can turn into a double.
- Another person who cannot manage his housing expense and therefore facing financial crisis repeatedly.
- Even a person who is plunged into a massive amount of debt as he has borrowed multiple 12-month instalment loans.
- A person who is about to retire from his job and want to segregate his funds in a good investment plan so that he can spend the rest of his life tension free.
- Just after having a baby when a person wants to plan for the future of his child.
So, these are some possible situation which may compel a person to look for a financial planner. However, you can understand from the conditions mentioned above that being an advisor. You need to have a healthy discussion with your client, including several essential factors. Such as:
- How much money does the client want to save?
- What type of bank account is he holding?
- Does the client have ever invested in any insurance plan?
- What is his long, mid and short term financial goal?
- What is the risk tolerance ability of the client?
- How much debt has he presented in the market?
- How many family members are there in the family?
- What is the age of the client?
After getting the answer, a financial planner starts his job of assisting the client. Besides, a financial planner also needs to play the role of a mentor. Sometimes client possesses little idea about investment plans.
In that case, he needs to make the client understand the ‘what’ and ‘why’ factor. While educating the client, a financial planner needs to briefly describe each financial parameters such as expense, budget, savings etc.
Later on, the planner should explain relatively complicated topics like taxation, rebate, and investment instruments so on.
What are the qualities a financial advisor should possess?
- Proactive attitude:
To become a successful financial mentor, you need to be proactive. The word proactive suggests staying over-active all the time. Whenever a client visits you to solve his financial crisis, your reply should be prompt and quick. You need to provide such suggestions which will make a client feel worthwhile.
- Be an expert:
If you think that for becoming a financial advisor, you have to complete a certain degree on the subject – it is a myth. There is no need to have academic knowledge of the subject. Instead, one can gain knowledge by doing self-study.
When you feel that now you possess the ability to peach someone, then start your career. However, if you wish, you may go for a certification program too. Professional certification will help to grab more clients undoubtedly.
- Good decision maker:
If you are a good decision-maker, then the job of a financial planner is just perfect for you. Because being an advisor, you have to guide other people so that they can earn profit and not loss. For instance, a client may ask your assistance in buying or selling shares.
In that case, you need to make the best decision for him. After calculating the condition and analysing the previous ups and downs, you need to advise your client whether he should keep the share or sell it.
Besides, whenever you decide on behalf of a company, you need to be more careful.