The job of Finance Advisors
Finance is often referred to as a shark’s world. While this may be true for laypeople, financial advisors must know how to negotiate these tricky waters on behalf of their clients.
Finance advisors use their knowledge of investment, tax laws, and insurance to help a pool of clients work out the best financial plan for their goals. They also offer advice; some even specialize in retirement and estate planning. Advisors can be found in two categories: personal advisors, who work with individuals, and financial analysts, who work in the corporate world.
Consultation With A Client
The job of the personal advisor starts with a consultation with a client, where he notes down information about the client’s finances and goals. This allows him to develop a comprehensive plan where critical problems are identified, and options are suggested for improvement. Afterward, the advisor usually meets with the client once or twice a year to update the client on the financial situation and to enquire about any action on the client’s part, like marriage or retirement, which may affect the plan. The personal advisor can also, on behalf of his client, purchase and sell financial products like mutual funds or insurance and is often responsible for drawing up taxes and preparing a client’s will. Personal finance advisors usually work from their homes and rely on word-of-mouth referrals.
Make Sound Financial And Investment Decisions
Financial analysts usually work for banks, insurance companies, mutual and pension funds, securities firms, and other businesses. Their job is to help those companies make sound financial and investment decisions. They are responsible for reading the company’s financial statements and analyzing the industry’s prices, costs, sales, expenses, and tax rates to determine its value and project its future earnings. Such analysts are also needed in merger and acquisition departments to prepare analyses of the costs and benefits of a proposed merger or takeover.
Personal Finance Advisors Are Strongly Recommended
A bachelor’s degree in Finance, accounting, business administration, or statistics is usually required for finance advisors. Financial advisors also often require knowledge of accounting procedures, corporate budgeting, and economic analysis methods. A master’s degree is frequently desirable in that case. Personal finance advisors are strongly recommended to possess a degree in accounting, Finance, economics, business mathematics, or law.