A financial consultant or financial planner is a professional that gives financial advice to clients according to their financial status. In most countries, financial planners are required to complete certain training and obtain registration with a regulatory agency in order to give financial advice. These professionals can also open their own private financial consultancy. Alternatively, some financial consultants work as representatives for a larger firm in the finance and insurance industry.
Financial advisers can specialize in a wide range of areas including asset allocation, investment strategies and asset protection. Many financial advisors offer a range of advisory services such as estate planning, tax planning, asset protection, pension savings and life insurance. Some advisors are generalists who have various areas of expertise while others are specialized, such as in managed fund administration, self-directed investing and asset protection. Some specialize in a particular segment of the financial professionals’ field, such as retirement planning, asset allocation and portfolio management.
Many financial advisors offer a comprehensive range of advisory services. They can help individuals plan and manage their assets; help families plan and prepare for the future; and provide essential assistance for individuals and families who are involved in long-term investments. Most financial advisors also help individuals create and manage their financial portfolios. An effective portfolio management strategy can significantly reduce the risk of an investor’s financial losses. Many financial advisors offer advice on how to invest and advice on the best types of investments for their clientele.
The duties of financial advisors can be quite varied depending on the area of specialty that they focus in. While some specialize in estate planning and asset protection for their clients, other financial advisors can perform all of these tasks. The roles and responsibilities of each financial advisor will vary depending on the specific needs of their clientele. In addition, the types of investments that an advisor can help their clients determine depend on the overall goals and objectives of their clients.
There are a number of standard responsibilities that all financial advisors have that all certified public accountants do not. A CFA should always have a complete set of business documents including a resume, cover letter, and business license. They should always be prepared to explain their fees in clear layman’s language and provide references that are qualified to comment on their qualifications. All financial advisors should hold updated copies of their licensing documents at all times.
There are two main types of Certified Financial Advisors (CFA): fee-only and fiduciary. Fee-only financial advisors are required to have no stock or mutual fund investment experience and cannot recommend products for your investment needs. In general, these types of advisors have lower compensation than fiduciary financial advisors and are not required to receive any education in the practice of securities laws. Fiduciary financial advisors, on the other hand, must hold at least a bachelor’s degree in accounting, be an experienced trader, and be registered with the US Department of Justice. Upon successful completion of the examinations, they will be certified as a CFA.