A financial advisor is an expert who offers financial advice to clients according to their financial capability. They conduct financial analysis and help individuals plan financial strategies and aid in making financial decisions. In the United States, these advisors are required to at least hold a post-graduate degree in finance or accountancy, and should have either general or specialized experience in finance, insurance or investment. In most states, financial advisors are required to complete special licensing and certification courses and be registered with an agency in order to give advice to individuals. Apart from this, financial advisors work as independent contractors for various financial advisory firms. Find out
A well experienced financial advisor helps individuals in understanding personal finance, budget planning, wealth management, and investment techniques. Most people take the advice of these advisors before they decide what financial product or asset would suit them best. For example, a client might seek advice on investing in an insurance company. The financial advisor helps the client find the right insurance company that will offer the right returns. The advisor can also help them select an asset which could increase their wealth in the long term.
There are different types of financial advisors, as described above. However, there are some different types of advisors who are working nowadays. These different types include short term financial advisors, long term financial advisors, growth and retirement advisors, commodity and bond market investors, and asset management advisors. The role of a financial advisor is quite important as he/she helps you understand the entire process of investment and helps you make an informed decision regarding your investment plans.