Financial Advisors: What Is It And What Does It Do?
Recently, people use financial advisors to assist them in managing their finances. If you are currently work hard to do money management well, you may need a help from a professional called financial advisor. Not all people good with money, sometimes they need to hire the advisors to do the money management.
In addition, the purpose of using financial advisors is to make the funds they budget on target and not used for things that are not supposed to be.
What Are Financial Advisors?
So, financial advisors are professionals whose job is to provide financial advice to their customers. The purpose of giving this advice is so that these customers can manage their money wisely and in a planned manner.
In general, the services provided by financial advisors are in the form of services for financial problems faced by customers, investment management, tax planning, and so on.
Duties Of A Financial Advisor
When you become a financial advisor you can work individually or join a financial company. You can also work from the office or visit many places to meet your clients. Apart from that, you can also give seminars on financial planning to your audience.
In brief, the duty of a financial advisor is to review the financial needs of their clients and help them overcome their financial problems. In addition, financial advisors will also help clients to make financial planning in the short term and long term.
Not only that, financial advisors will also help clients to provide tax and insurance advice, investment advice, and so on.
For more details, here are some tasks that are generally carried out by financial advisors:
- Meet with clients to help with financial problems they are facing
- Providing education about financial services
- Provide education and advice regarding investment options and their risks
- Provide suitable investment recommendations for clients
- Researching investment opportunities
- Help make financial planning within a certain period according to the client’s needs, and with the goals desired by the client
- Monitoring the progress of the client’s investment account
Financial Advisors Fees
Of course, to take advantage of financial advisor services, you need to pay a certain amount. There are 3 types of payment methods that you can make to a financial advisor. Among them:
• Commission Base Model
In this one model, financial advisors will get a commission from the products they successfully sell. So, later on, clients will not receive bills for the services of the financial advisors they use, because the financial advisors will receive payments directly from the commissions they get from the products they sell.
• Fee Base Model
Furthermore, a financial advisor will get paid for the number of hours they work or a percentage of the total assets they manage. Usually they will target a payment of 1% of the total assets they manage. If financiers are paid hourly, they will get around $120 – $300 per-hour.
Of course, every financial advisor has their own salary rate according to experience, as well as the type of services they provide to clients.
• Combinations
In this model, the type of salary paid is a combination of commission and fee base model. So, financial advisors will get a fee from the services they provide to clients. And they will get a commission from the products they successfully sell to clients
Closing
That’s really how much information about financial advisors, I hope the information above can add to your insight.
