In life, everyone has to deal with money. How can you live without money during this time, right? Even if money is not everything, you need it to live. With the passage of time, more and more financial matters such as insurance, investments, stocks, and others. Due to the complexity and variety of financial instruments, the role of a financial advisor is increasingly needed. For those of you who still don’t know what a financial advisor is, don’t worry, you can refer to the following article.
Definition of a financial advisor
A financial advisor or financial adviser is a person who acts as an advisor who assists clients with financial planning and overcoming financial problems. Even if we deal with money every day, dealing with money is not easy. Well, this is where the financial advisor comes in.
Financial advisor jobs can vary, such as:
- Investment Manager
- relationship manager
- insurance agents and others.
However, due to the specifics of their work, not everyone can become a financial advisor, they must have a specific license and a deep understanding of banking.
Well, typically clients of financial advisors themselves can be companies or individuals.
However, due to the specifics of their work, not everyone can become a financial advisor, they must have a specific license and a deep understanding of banking.
Well, typically clients of financial advisors themselves can be companies or individuals.
Financial Adviser Duties and Responsibilities
As with other jobs, a financial advisor has a specific job desk that sets it apart from other jobs. To find out what the job descriptions or tasks and responsibilities of a financial advisor are, just look at the following points!
1. Meet with clients to discuss their financial goals
The financial advisor’s first job is to invite clients for face-to-face meetings so they can delve deeper into the financial goals they are trying to achieve.
Typically, a financial advisor will ask questions, both verbally and in writing, to find out the client’s financial health and risk profile by asking:
- source of income
- expenditure
- Debts
- His future financial plans etc.
Thereafter, the financial advisor will use their skills and experience to help clients achieve those goals.
2. Educating clients about various investment instruments and their risks
Once the client’s financial situation and goals are known, the financial adviser’s next task and responsibility is to educate the client about the various investment vehicle choices available and the risks involved.
Not only that, financial advisors will also educate clients on how to save and budget.
3. Describes the types of financial services available and suggests suitable clients
First, financial advisors help clients think about how much to save and invest. The financial adviser then suggests which type of investment is suitable for both the short and long term, from a wide range of existing instruments, including:
- tax planning
- stocks, insurance
- pension fund and so on
- To meet the client’s conditions, goals, and financial problems.
4. Helping customers to plan under certain conditions
Every client has different conditions, so planning for specific conditions according to client requests is also part of the job desks of a financial advisor.
For example, there are customers who intend to send their children to school or to retire in the next few years. Therefore, financial advisors must also help clients implement the plan.
5. Monitor the customer’s financial situation and make changes if necessary
Even if the client has purchased certain investment products, this does not mean that the financial advisor’s job ends there. The financial advisor still has the responsibility of overseeing the client’s financial condition and monitoring the progress of the client’s investment results.
As we know it is important that each goal is evaluated, who knows if there are things that need to be changed or adjusted if it is really necessary to stay on the original path.
Regardless of the job description or role and responsibilities, financial advisors need to make clients feel comfortable and trust them. It’s dangerous when the customer loses trust one day, especially with financial matters like this.