Most people usually perceive financial advisors as suited-up professionals who just help investors choose an appropriate fund but there is much more to it than just guiding an investor to the right fund
Here are some of the crucial roles and responsibilities of a financial advisor:
Organising and managing finances
Many investors have a busy schedule and it so happens that they tend to neglect the discipline aspect of investing. As a result, they struggle to keep their finances in check.
Hiring a financial advisor is beneficial for investors as you can examine their net worth, help them identify their goals and recommend ways to help them fulfil their aspirations.
Structuring the financial plan
A financial advisor diversifies and allocates investor’s assets into different types of investments like bonds, real estates, stocks, etc.
This helps reduce the risk of decline in value of the portfolio.
Controlling behavioural risks
Often, panic gets the best of investors. When markets falls, many investors tend to sell their investments hastily.
The role of a financial advisor also entails counselling the investor through market volatility and control the risk that follows emotions.
Planning for retirement
Investment planning is imperative for a financially secure future. But it so happens that a retirement is often overlooked by many.
A financial advisor can guide investors to a clearer investment path and design an entire plan to help achieve a financially stable retirement.
Planning the bigger picture
Some advisors are solely investment focused. Then there are advisors who focus on the other aspects of investor’s financial life like debt reduction, tax planning, insurance, child’s education, vacation planning, and more. While hiring financial advisor investors need list which services they need and then evaluate if the financial advisor can fulfil them.
Being a financial advisor is much more than just giving fund recommendations. There is more to it than what meets the eye.
