A financial advisor or coach is not only responsible for providing financial services. The good financial advisor will be your ally to improve your quality of life.
As we grow and acquire money and responsibilities, we intend to look for new opportunities, the same ones that somehow lead us to set financial goals, improve our quality of life, plan and achieve dreams.
All this becomes uphill when we ask ourselves what to do with the money, where to direct our efforts, but we have little financial education. This is where we can take the first step, which is to find a financial advisor to guide us and tell us what to do with our money. If you are faced with these types of constant questions and doubts, you cannot miss this content. Let’s get started!
What does a financial advisor do?
A financial advisor is a professional with extensive knowledge in finance, he will take care of the way of investment or capital management that best suits your needs to improve your financial life.
The financial advisor, also called a financial coach or consultant, not only supports you in managing your money: he is also capable of suggesting solutions to your short and long-term financial life in a personalized way and executing orders in the stock market and financial products ( shares ), annuities, loans, among others, following a financial plan.
As you can see, a financial advisor can help you in various aspects. Their functions will vary depending on whether you request their services as a company, or as a natural person to manage your finances . Either way, it will put financial planning into practice to help you reach your goals. To clarify all this a bit, we will leave you below the functions of a financial advisor.
Functions of the financial advisor
The world of financial advice has different branches. An advisor who works in a company will not have the same functions as a bank commercial advisor, for example. However, there are general functions for the professional profile, such as:
- Provide consulting or professional financial advice and transaction management to clients.
- Keep a detailed record of the transactions carried out and the decisions made.
- Be up to date with everything related to the client’s legal and financial matters, and the status of their financial assets.
Let us now see their functions according to the area in which they perform:
Functions of the advisor in a company:
- Increase cash flow through the correct management of the entry and exit of money.
- Provide a guide for making investment decisions of the company.
- Advise on the management of the company’s profits, for example, to have a supplement to the retirement of the company’s staff.
Functions of the bank commercial advisor:
- Consolidate the corporate image of the organization.
- Establish business relationships with customers.
- Management of the money handled by the bank.
Functions of the independent financial advisor:
- Accompany the client in their investment decisions.
- Evaluate the client’s financial situation.
- Raise financial objectives and new opportunities according to the client’s interests.
- Identify the financial needs and objectives of clients and evaluate their current and future investment decisions.
- Offer financial products adapted to your risk profile.
In addition to this, you must have certain requirements:
- The independent advisor must be regulated and supervised by the National Securities Market Commission ( CNMV ).
- You must work according to the new regulations of the MiFID II law .
A good financial advisor not only proposes the performance of quality financial operations, but also guides towards financial health by setting goals and tracing the best path to meet them based on their extensive knowledge in the area.
Just as there are functions depending on the branch in which the coach or financial advisor works, there are types of advice, which we will see below.
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Types of financial advice
When talking about financial advisors, we tend to think that they all deal with the same thing. But while everyone is obligated to do what they can to help you succeed financially, each type of advisor has a different role and goal. There are seven types of financial advisors, but here we will describe the two most common:
It deals with helping you make a plan to save, pay debts, invest. It also handles matters that require finding a specialist, such as a lawyer. In other words, they will work to help you achieve your goals. And if you’re not sure what your goals are, they can also help you determine them.
They can work closely with financial advisors, investment managers or mutual fund companies to better manage their clients’ investments.
While financial planners see the big picture, investment advisors focus solely on helping their clients choose the best investment options. However, many of them only manage large portfolios and do not work with people who are just starting out in the world of investments.
That is why at Arkangeles we decided to take care of those small investors who are just starting out and who, with a little support and quality financial education, will become one of the best. On our platform, depending on your investment profile, we give you the best options to invest and diversify, regardless of the size of your capital or the breadth of your portfolio. This way you have better risk control and better returns.
Why it is convenient to have a financial advisor
Having a financial advisor will always be an excellent idea, even more so if you are just beginning to educate yourself in finances and personal economics. In short, it is responsible for aligning your financial strategy with the lifestyle you want to lead.
It will help you organize your savings, put your assets in order and make it profitable. In other words, it will help you build an investment portfolio or investment plan that suits your profile and needs.
We know that hiring someone for this type of work costs money, so even if you want to do it, sometimes it is necessary to learn on our own and put our financial life in order as much as possible, to later pay for the help of a professional .