Financial Advisers, Planners and Counsellors play a major role in a company to decide about Investments which can give high returns. They also help individual investors. But before recruiting a financial adviser you should know about their role and recruit the correct person for the job.
If some mistake is made by not recruiting skilled financial advisers then it may lead to more losses than you can ever think of. This article gives clarity about all the information you need to know about financial advisers and their educational qualifications.
What is the Role of a Financial Advisor?
A financial adviser is a professional who works individually or for a financial firm to provide investment and financial advice. Advisors may receive a transaction commission or an advising fee for the service they provide.
Everyone in the financial counselling sector does not have the same level of knowledge, experience, or talent. Here we highlight several critical factors to look for to verify that your financial adviser is qualified for the job.
Talents & Attributes required for a Financial Advisor
The best skills and abilities of a financial adviser can help us make more profits via proper investments.
Educational Qualifications to check while recruiting a Financial Advisor?
When you recruit a financial adviser for your company you should check whether they are educationally qualified. You should check their schooling to a higher graduation level along with their work experience.
The minimum qualification for a financial adviser starts from passing his/her 10+2 higher secondary schooling examination. Followed by a bachelor’s degree related to finance and accounting field. Having a master’s degree is an added advantage.
When it comes to work experience they should know about investing, financial planning and risk management. You can surely recruit financial advisers with a professional Licence and mandatory certifications like CFP (Certified Financial Planner) as they are more credible and experts in this field.
Financial Advisor Types
Financial advisers can be experts and specialists in different areas of finance and investments. Different specialists provide some unique services which make their financial advice more profitable. The different financial specialists and their specific role is explained below.
Recruiting the correct financial adviser after knowing what is your goal can bring in more profits. All these financial specialists can be good financial advisers with good expertise and experience.
1. Financial Analyst
A financial analyst analyses financial data and utilize their conclusions to assist firms or clients to make business and investment choices.
Often, the study is intended to guide a company’s investment decisions. Financial analysts can effectively customize your investment portfolio by introducing you to various financial markets available.
2. Financial Planners
Financial planners mostly provide long-term financial goals for companies and individuals. They are experts in the subjects of investing and finance. Financial planners examine the risk tolerance, financial goals, etc of their clients to come up with a profitable financial plan.
3. Accountant
Most of you will be sure of who an accountant is as you might have already hired an accountant. Accountants mostly do audits or financial statement analyses and help you in carrying out all the procedures required for tax payments. They can work in a company and also provide services for individuals.
4. Financial Examiners
Financial examiners are regulators or moderators in the finance and investment field. Their main role is to check whether the banks, security companies, financial institutions, etc follow government laws and regulations. They are the ones who indirectly help you to keep your investments safe.
5. Investment Banker
Investment bankers mostly work for companies, governments and corporates rather than individuals. Their main work is to raise cash and bring in investments for these organisations in large amounts.
6. Economist
Finances, investments and growth at a higher level are possible only vis proper research and solutions given by economists. Economists mostly work for Governments and Companies by considering the people, the global economy and various other factors to give investment and financial advice. They are the ones who help governments during a financial crisis.
All the above-mentioned professionals can work great as financial advisers.
Functioning of a Financial Advisor
The characteristics and functions of financial advisers differ according to their clients. Advice and assistance given by Financial Advisers to individual clients and companies are listed below.
Advice by Financial Adviser to Companies
Financial advisers are a must need for a company to grow its business and profits.
Indicators of Economic Slowdown
A period of decreased Economic activity is referred to as an Economic slowdown and is frequently characterized by slower Economic development, growing unemployment, reduced consumer spending, and decreased business investment. The following are some signs of a potential Economic slowdown.
Advice by Financial Advisers to Individual Clients
Advice for individual clients differs from those provided to companies. Individual clients mostly take financial advice on profitable investment avenues and their main is to increase their wealth.
Know these before hiring your Financial Adviser
Hiring a financial adviser is an important task that should be done with utter caution. Whether it is for a company or a government proper financial decisions can be an added advantage and bring in more profits. Financial advisers can even help a collapsing economy of a country to regain its financial stability. So, make sure to keep in mind the 7 points listed below while hiring a financial adviser.
What will be the future of Financial Advising & Advisers?
As we are moving into an era of Artificial Technology (AI), financial Advising can also be programmed to give appropriate results via computer software and mobile apps.
Advantages and Disadvantages of a Financial Advisor
Financial Advisers can increase your profits with the right decisions, on the other hand, they can bring you more losses if they are not properly skilled. Check out the pros and cons of hiring a financial adviser in Table 1 so that you never go wrong due to any reason.
Table 1: Pros and cons of hiring a Financial adviser
 Advantages |  Disadvantages |
|---|---|
| A Financial Adviser can provide valuable advice on proper investments.They can increase your Return on Investments (ROI).A skilled financial adviser with an analytical and creative mind is the best choice to bring you more profit. Prefer experienced and licensed financial advisers with good track records. | You should select the financial adviser properly or you might incur more losses.Financial advisers earn a good income, and due to this many unskilled advisers are present in the market, beware of them.Financial advisers can be frauds using your money. If you don’t know about investing they will use your money to profit for their own sake and will tell you that your investments didn’t give any returns. More Regulations are required to control fraud and select the right financial adviser |
FAQs – Frequently Asked Questions
What are the minimum eligibilities to check before recruiting a Financial Advisor?
Check for the minimum educational qualification up to the under graduation level. A financial adviser should also hold licenses such as FINRA license or other licences that are accepted in your country. Prior work experience as CFA, CFP, or ChFC is an added advantage.
What is the working atmosphere I should provide for a Financial Advisor?
If you hire a financial advisor full-time, you need to provide them with an office space or work-from-home options. Mostly experienced financial advisers will have their own office and have many clients to whom they provide financial services.
What is the difference between a financial planner and a financial advisor? Who is apt for me?
According to the need of your hour, you need to select whether you need a financial adviser or a financial planner. A financial adviser is a specialist who assists businesses and people in developing a plan to accomplish long-term financial objectives. A financial planner is a wide phrase for individuals who assist you in managing your money, which includes investments and other accounts. Sometimes you may need to recruit both a financial adviser and a planner as both play different roles.
How Can I Tell If My Financial Advisor Is Reliable?
You might follow some steps to understand whether your financial adviser whom you plan to recruit is reliable or not:
You are the one hiring the financial advisers, so analyse and take time to think. Then decide whether to hire a financial adviser or not. If you already have one, check the work record to gain insights. This will show the reliability of your financial adviser.
How to hire a Financial adviser in a Nutshell
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