A financial advisor is a professional who guides and advises a client on various aspects of financial dealings for a fee. The range of services such an individual provides is wide and varied and includes income tax preparation, tax planning, investment management, estate planning and much more. A qualified financial advisor has the necessary licensing to provide different services to the public. Insurance agents, stock brokers, financial planners, estate planners and tax preparers are called financial advisors.
A financial advisor will have control over various financial matters and exert huge influence over numerous investment decisions. His decisions will affect the growth and stability of a company, short-term planning, long-term planning and financial security.
A knowledgeable and expert financial adviser is a great asset to any individual and company. He has the financial acumen to reduce financial losses and expenditures and help make good financial decisions. Selecting a new financial advisor or replacing an existing one is one decision that has to be made after much research. As this is one of the most important financial decisions a person or company is likely to make, the selection process requires detailed planning and meticulous research.
There are different types of financial advisors. Stockbrokers, bank representatives, accountants and investment representatives are called registered representatives. They hold a series 6 or Series 7 primary sales license and are paid commissions. Financial planners do not require licensing to be advisors. However, it is better to hire the services of those who have CFP, CPA/PFS or ChFC certification.
Registered Investment Advisors (RIAs) are financial advisors who are held in high esteem and are paid fees. Money managers are similar to them, but they can make decisions without informing the investors for whom they work, and they do not have to wait for approval.
A few areas that need focus while choosing a financial planner include education, experience and certifications. Their compliance record, registration and fiduciary status, the range of services they offer and business practices, including methods of compensations and ongoing services, have to be checked and verified.
The Internet is the ideal place to learn all one needs to know. Keying in the right keywords in search engines will provide you with information about the financial advisors in your area. Comprehensive interviews will tell you a lot about their skills, types of services, service quality, other clients, methods of compensation, etc. It is important to gather all relevant information and compare the details the financial advisors provide before appointing one.
Looking for income planning, savings management or other financial services? Consider Puritan Financial.