The_Importance_Of_A_Financial_Advisor

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					Title:
The Importance Of A Financial Advisor

Word Count:
545

Summary:
When it comes to managing your finances, you can certainly do it
yourself. If you don’t feel comfortable doing that, you can use the
services of a financial analyst or a financial advisor. Choosing one is
easy once you know what they can do for you.

A financial analyst and a personal financial advisor help to provide both
an analysis and also guidance to businesses and individuals who seek help
with their financial decisions. Each type of financial specialist gathers
finan...


Keywords:
finance,financial


Article Body:
When it comes to managing your finances, you can certainly do it
yourself. If you don’t feel comfortable doing that, you can use the
services of a financial analyst or a financial advisor. Choosing one is
easy once you know what they can do for you.

A financial analyst and a personal financial advisor help to provide both
an analysis and also guidance to businesses and individuals who seek help
with their financial decisions. Each type of financial specialist gathers
financial information, analyzes it, and makes a recommendation to his/her
client. However, they do differ when it comes to the type of investment
information that they can provide, and also the clients that they work
for.

A financial analyst assesses the economic performance of companies and
industries, as well and for firms and institutions that have money to
invest. A personal financial advisor assesses the financial needs of
people, able to offer them a wide range of options.

Also called securities analysts and investment analysts, a financial
analyst works for banks, insurance companies, mutual and pension funds,
securities firms, and also other businesses. He or she helps these
companies and/or their clients make important investment decisions. A
financial analyst read a company’s financial statements and also analyzes
commodity prices, sales, costs, expenses, and also tax rates in order to
determine the company’s value, as well as to project its future earnings.

The financial analyst meets with company officials in order to gain a
better insight into the firm’s prospects and also to determine its
managerial effectiveness. They also usually study an entire industry,
assessing its current trends in business practices, products, and
industry competition in order to keep abreast of new regulations and
policies that may affect the industry. Monitoring the economy to
determine its effect on earnings is also a duty.

A personal financial advisor, also known as a financial planner or a
financial consultant, uses his/her knowledge of investments, tax laws,
and also insurance in order to recommend financial options to individuals
that fit with the client’s short-term and long-term goals. Financial
planners deal with such issues as retirement and estate planning, funding
for college, and also general investment options. Some financial advisors
are able to advice on a wide array of topics, while others are
specialized in certain areas.

Working with a financial advisor begins with a consultation, where he/she
is able to obtain information on the client’s finances and financial
goals A comprehensive financial plan is then developed that identifies
problem areas, offers recommendations for improvement, and also selects
appropriate investments that are compatible with what the client wants.

Clients usually meet with their financial advisor at least once a year to
update them on potential investments, as well as determine if any changes
have been made.

In addition, some advisors buy and sell financial products, including
mutual funds or insurance, or are able to refer their clients to
establishments who do.

Perhaps a financial advisor’s most important job is building a customer
base, since referrals from satisfied clients help to generate new
business. Other than being contacted by the client, financial advisors
contact potential clients by offering seminars or lectures, or even
meeting them through business and social contact.

				
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