What is a Financial Advisor – Essay Sample
A financial advisor is a highly desired position and much-needed service in the world today. Individuals, companies and even government programs use financial advisors to monitor their finances. A professional financial advisor is generally hired to keep finances ‘under control’ – to maintain a healthy monetary balance for their customers.
There are different types of financial advisors, but all of them must be accredited before performing any financial duties. For most countries, financial advisors should hold college degrees and certifications that prove their qualifications as a financial advisor. Their payment varies, either by commission or by set fees. Currently, it is becoming increasingly common to contact financial advisors through online sources.
Financial advisors mainly work to organize the financial issues of their clients. The advice and services of a financial advisor pertain to: balancing a checkbook; paying taxes; making investments; moving money into desired accounts; planning wills or retirement finances, and generally keeping the client financially stable. Financial advisors do not often perform these duties themselves. Rather, they create a stable plan by which the customer is supposed to follow. As advisors, their role is to recommend financial behaviors and avenues, provide resources and help customers get started on organizing their finances. Such advice can be short term or long term, depending on the needs of the customer.
Financial advisors use several different methods to plan and perform their duties. Most of these methods involve observing, studying and predicting trends in the financial market. Advisors study the fluctuations in the stock market, business success rates, insurance prices and the general trends in the economy to help with practical investments. At the same time, they must study the client’s financial status, past purchases, available funds and possible risks. Financial advisors do this in order to provide a valuable service to individuals, companies and corporations around the world. With their help, people can hope for better, more responsible financial futures.
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