Who is a financial advisor
A financial advisor can be addressed as a professional who provides financial services to individuals, businesses, and governments. These financial services may include pension planning or/and advice related to life insurance and similar insurances like income protection insurance, critical illness insurance, and also advise on mortgages.
Idyllically, a financial advisor assists the client in maintaining the expected balance of investment income, capital gains, and acceptable level of risk through the use of proper allocation. Financial advisors use bonds, stock, mutual funds, RETIs (real estate investment trusts, futures, options, notes, and insurance products to congregate the needs of the clients.
Duties and responsibilities of a financial advisor
The duties and responsibilities of a financial advisor are as follows:
1. The first and foremost responsibility of a financial advisor is to guide the clients on the basis of short term and long term financial objectives.
2. It is essential to first consider the financial requirements of the customers for advising on the basis of his/her financial conditions.
3. The advisor should guide the clients about the fund specific projects they would be interested in.
4. The advisor can undertake the retirement planning for clients.
5. It is also required on the financial advisor’s part to guide the clients about the bets real estate investment opportunities present in a particular market.
6. The financial advisor is liable for pooling the wealth of the shareholder when employed in a mutual fund.
7. The financial advisor needs to ensure the clients’ willingness towards a particular investment decision as well.
8. The financial advisor performs the duty of helping the client in acquiring assets in a balanced way.
9. The financial advisor should keep in mind the requirement of liquid cash to congregate the day to day expenses.
Skills and specifications
The basic skills and specifications required essentially in a financial advisor include:
1. The person should possess good communication skills.
2. He/she should have the required financial knowledge in insurance, tax services, retirement accounts, and financing accounts.
3. He/she should be registered with the respective authorities.He/she should be trustworthy and objective in doing the job.
- Debt ratios
- Liquidity ratios
- Profitability ratios
- Asset management ratios
- Cash Flow Indicator Ratios
- Market value ratios
- Financial analysis
- Business Terms
- Financial education
- International Financial Reporting Standards (EU)
- IFRS Interpretations (EU)
- Financial software