Financial Advisers

Establishing a business is never an easy endeavor. The money used as capital to start something from nothing must be taken care of by investing it into a profitable business venture. Surely, there are risks that await every investor; a danger that may either lead him to a losing end or to a successful business life. Assumptions and guessing-games must be eradicated in the vocabulary of a business man, for these have no room in the business world. So there must be certainty in every decision and step made.

Hence, either an entrepreneur is a beginner or has gone through a year or two in putting up a business, advices must be solicited from someone who is familiar with the know-how of a good investment and financial planning to ensure excellent running of business and entrepreneurial gains. A financial adviser, who will either be working for a registered company or independently, does this task.

A personal financial advisor is a skilled professional consultant who provides investment suggestions and financial planning and solutions to individual entrepreneur, firms and business establishments. To meet client needs, financial advisers use bonds, funds, stocks and insurance goods. A financial adviser sees to minimize risks and on the other hand, maximize growth of money. He or she is ought to understand a client’s financial status to attain business goals- that is to expand the capital to further strengthen the business.

A financial adviser must be well-acquainted with proper budgeting, forecasting, taxation, asset allocation and financial tools and products to come up with feasible business strategies. In budgeting, he or she must be good in listing all planned expenses and revenues to measure the financial capabilities of the client or company when certain strategies or tactics are implemented. A financial adviser must also know how to forecast the probable occurrence of unidentified situations that may occur and affect the business in the future. And finally, as a professional planner, he or she must know where to put wise distribution of investment using investment vehicles. He or she must be sensible enough to know where and how the investment will prosper or decline.

Anyone can claim that he or she is a financial adviser or planner but they have to be a registered adviser in the Securities and Exchange Commission in the United States by getting a FINRA license, for them to be able to demand a fee for a rendered service.

There are also independent financial advisers who render financial counseling all by themselves rather than representing a company. The term ‘independent financial adviser’ originally came from Untied Kingdom. Generally, it refers to advisers that are regulated by Financial Services Authority (FSA) who are ought to meet strict requirements to see competence and proficiency in carrying out the job.

An IFA’s job description is quite similar with those in the United States. He or she does ‘fact-finding’ to come up with a detailed report of the financial status and capabilities of the client. Once assessment of the report is made, suitable actions will be made to meet client’s objectives. Apart from these tasks, an IFA also gives advice on investment, insurance, mortgage and even on tax and legal matters.

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