A financial adviser or financial planner is someone who gives financial advice to customers based on his or her financial circumstances. In the United States, financial advisers must complete certain educational courses and obtain ongoing regulated supervision by the securities and commodities commission (SEC). This information is required for anyone wishing to become a financial adviser. The Securities and Exchange Commission also requires that advisers complete annual examinations to determine whether they are properly educated in financial issues.
Financial advisers can help people manage their finances, such as investing for retirement, buying a second home, protecting estate assets, purchasing vehicles and real estate, and handling various accounts like checking and savings accounts. Some financial advisors also help individuals create financial plans, such as how to get a mortgage, what types of student loans are available, and managing 401(k) s. They can also help people manage their money in general by making strategic investments and setting up appropriate retirement funds.
Financial Advisors can help clients manage their money through a number of investment options. Traditional securities include stocks and bonds. Investments may be made in real estate, commodities, derivatives (like currencies and insured deposits), mutual funds, options, private stocks and bonds, and financial products like futures and forex trading. Most people prefer to invest their money in a mix of these securities because they offer a good return on investment and a wide range of investment opportunities. Many financial advisors offer a wide range of investment products to their clients. They tailor their advice, either through phone or in-person meetings, to help their clients meet their individual investment needs.
Good financial advisors will focus their advice on the types of investments that best meet a client’s goals and tolerance for risk. Some clients may be more conservative, while others may be more aggressive. For example, if the client has a net worth of one million dollars and is interested in using cash flow instruments such as cash structured settlements and annuities to generate investments, the advisor should be able to provide guidance on investing in low risk cash products and in emerging markets where growth potential is great.
Another type of investment option that good financial advisors offer to their clients is self-directed investing, also known as self-directed investing, or wealth management. This type of investment allows the investor to select his own financial advisor, choose his own stockbroker, and make his own decisions regarding the management of his/her investments. This option is especially appealing to older clients who may not be interested in putting much effort into building their portfolio and may only need help with specific, narrow areas.
There are a number of additional fee-based financial advisors that offer slightly less comprehensive services. Some fee-only financial advisors will be willing to manage a client’s assets for a slightly higher fee and will not require any other type of retainer. Other fee-based financial advisors may require clients to maintain a small monthly managed account that receives regular deposits. In addition, some fee-only advisors may allow their clients to choose from a list of investment options that may include fixed income instruments, preferred stock funds, exchange traded funds, mutual funds, and/or other products.