What Do Financial Advisors Do? What can Jacob Delange do for you?
You may wonder what a financial advisor does. In general, these professionals help you make decisions about what you should do with your money, which may include investments or other courses of action.
- A financial advisor is often responsible for more than just executing trades in the market on behalf of their clients.
- Advisors use their knowledge and expertise to construct personalized financial plans that aim to achieve the financial goals of clients.
- These plans include not only investments but also savings, budget, insurance, and tax strategies.
- Advisors further check in with their clients on a regular basis to re-evaluate their current situation and future goals and plan accordingly.
The Many Roles of a Financial Advisor
A financial advisor is your financial planning partner. Let’s say you want to retire in 20 years or send your child to a private university in 10 years. To accomplish your goals, you may need a skilled professional with the right licenses to help make these plans a reality; this is where a financial advisor comes in.
Together, you and your advisor will cover many topics, including the amount of money you should save, the types of accounts you need, the kinds of insurance you should have (including long-term care, term life, disability, etc.), and estate and tax planning.
The financial advisor is also an educator. Part of the advisor’s task is to help you understand what is involved in meeting your future goals. The education process may include detailed help with financial topics. At the beginning of your relationship, those topics may include budgeting and saving. As you advance in your knowledge, the advisor will assist you in understanding complex investment, insurance, and tax matters.
Step one in the financial advisory process is understanding your financial health. You can’t properly plan for the future without knowing where you stand today. Typically, you will be asked to complete a detailed written questionnaire. Your answers help the advisor understand your situation and make certain you don’t overlook any important information.
The Bottom Line
Not all financial advisors have the same level of training or will offer you the same depth of services. So when contracting with an advisor, do your own due diligence first and make sure the advisor can meet your financial planning needs.
Check out their certifications as well, and be sure you understand, agree with, and can afford their fee structure.
Finally, be aware that finding an advisor who is the right fit for your personality is key to developing a successful, long-term relationship. An advisor can have all the experience, credentials, and success stories in the world. However, if you don’t like someone, you won’t enjoy working with them. And it’s possible your financial plan may suffer as a result.