What Are Financial Advisors?
A financial advisor or financial adviser is an independent professional that provides financial advisory services to customers depending on their financial circumstance. In most countries, financial advisers must complete certain formal training and obtain registration with a regulating body to give advice. Most advisers will act as personal advisors to their clients, working with their creditors to reduce debt, and offering investment advice or products. Some advisers are also licensed or registered as financial planners, who work with couples, families, and retirement specialists. Others may work with corporations to help them design their retirement programs.
Advisors also help clients develop and maintain a long-term financial plan, working with them to explore financial options and create a strategy for their future. This plan often involves investments in a variety of assets, which are expected to increase in value over time. Financial advisers also help their clients deal with potential issues, such as establishing insurance policies and creating a home purchase or trust fund. They help their clients manage their finances by creating a budget and discussing plans and investments for saving for retirement, purchasing a home, or for college. They may also help individuals establish a personal budget and help them develop a savings or investment plan.
When selecting a financial advisor, it is important to find someone who is certified by the American Society for Financial Planning (ASFP) and is registered with the State Licensing Board. Additionally, prospective clients should check with the Attorney General’s office in their state to ensure that the person is not certified to practice there. The Internet can help clients locate certified financial planners and other relevant professionals. In addition, the Internet can provide a directory of qualified and licensed professionals.