Let’s Get Acquainted with a Financial Advisor

financialtreat – will explain about Yuk, Acquaintance with Financial Advisor that you will get in the following article. Let’s look at this article carefully!

Are you one of those people who find it difficult when it comes to managing finances or finances? Does your salary always run out before payday? If yes, then maybe you need the services of a financial advisor.

In fact, some people do need a special advisor to help plan their finances, be it personal finances or corporate finances. Because financial affairs are indeed not affairs that can be taken lightly. So, who exactly is the financial advisor? Here we will explain it to you.

Let’s Get Acquainted with a Financial Advisor

Understanding Financial Advisor

As already reported from the official Investopedia page, a financial advisor is a person who will give advice or advice to his client’s machete in order to be able to plan his company’s finances or personal finances carefully.

Usually, they will provide a wide variety of forms of services, such as cessation management, financial problems, tax planning, etc. They will do their job independently and there are also those who work under the auspices of a financial company.

Some of them also work in offices or go to many places to meet their clients. A financial advisor also does not rule out the possibility of giving seminars on financial planning in several places and teaching in an online class. But apart from it all, they must have a professional license in running their business with clients. Because not just anyone can be a financial advisor.

In our own country, there are actually many professional financial advisors that you can contact if you need his services. If you have heard of several terms such as insurance agents, page builders, investment managers, or stockbrokers, then they are all included in the financial advisor.

What Exactly Does a Financial Advisor Do?

After we understand the meaning of financial advisors, then maybe you will wonder about what they do. Reporting from the official career explorer page, their task is generally to review a person’s financial needs and help their clients in overcoming various financial problems.

They will provide assistance to their clients to be able to plan their finances in the short or long term. They will also usually provide some recommendations in the form of an investment instrument that is in accordance with the main goals of their clients.

But in general, some of the things they do are as follows:

  • Meet his clients personally to help with his financial problems
  • Provide explanations regarding the type of financial services
  • Provide education to clients and provide advice regarding investment options and risks
  • Appoint recommendations for investment instruments that are in accordance with the client
  • Conduct investment opportunity research
  • Provide assistance to clients regarding certain planning so that they can achieve their goals
  • Monitoring the development of the client’s investment instrument account

Is Using Financial Advisor Services Necessary?

The answer to this question comes back to each individual. Reporting from the official Nerd Wallet page, if you experience doubt in solving financial problems, it is advisable to consider hiring the services of a financial advisor.

They can make you a good advisor in helping to solve the solution of every financial problem you experience. Because they have judgments that are beyond expectations, it will make you confident in taking a step or policy. In addition, they will also help you in solving quite complex financial problems, such as debt, house building, taxes, etc.

So, will the money used to hire their services be proportional to the results you will get? Of course, it’s comparable, why? Because they will provide careful financial planning for you. So, with a financial advisor, the possibility of your financial problems can be resolved properly, even advice from them can apply in the long term.

Advantages and Disadvantages of Using a Financial Advisor

Of course, there will be a lot of benefits that you can get by hiring a financial advisor. You can directly learn how to invest well in experts. In addition, you can also save time, because arranging investments and planning for Financial actually takes a long time.

By using their help, the time in arranging financial planning does not need to be thought about personally. On the other hand, they also have an important role in giving you the best advice when making financial policy.

Meanwhile, the shortcomings of using their services are certainly from services that are quite expensive. However, this problem is not meaningful enough for those of you who tend to be well established in financial terms.

Tips for Choosing the Right Financial Advisor

1. Find a certified financial planner

To make sure you choose a financial advisor who consults, you can determine whether the financial planner has a certificate or not. In Indonesia, the government only recognizes the Financial Planning Standards Board (FPSB) as the only financial planner professional certification body.

This FPSB issued two types of certifications, namely:

  • Certified Financial Advisor (CFP) for those who have completed four modules
  • Registered Financial advisor (RFP) for those who complete two-module education

In addition to aiming to obtain credible advice, choosing a certified financial planner is important so that you can build trust. Because, when consulting later, you need to make sure the data you share is kept confidential.

2. Find a financial advisor as needed

Financial planners have their own specifications. For example, there are financial planners who serve individual or family customers with incomes below Rp10 billion per year. However, there are also financial planners who only serve customers with income above Rp10 billion.

Then, there are also financial planners who focus on consulting in the fields of investment options, insurance, business, taxes, and so on. Make sure you ask for consulting services at the right financial planning institution. You can also ask prospective financial planners about the main services they offer, and the reasons why you should use their services over other financial planners.

3. Find out the rates charged

Look for several prospective financial planners, both legal and individual entities, that you want to use. Then, ask the rates of each financial planner to consult. Also, make sure whether they charge a commission for the sale of the business or the return on the investment you consulted them.

4. Ask for examples of financial plans that have been made

It doesn’t hurt to ask for examples of portfolios in the form of financial plans that have been made by prospective financial planners. Generally, this financial planning document consists of financial goals and strategies for achieving them. This is to give you an idea of the services you will get, whether it suits your needs or not.

5. Choose an independent financial planner

Independent here contains the understanding that it is not affiliated with a particular financial product. Because, if he is an extension of a financial product, then he is likely to give advice to customers to buy the financial product.

6. Find out the financial planner’s track record

You can also search for a financial planner’s track record by looking at reviews on the internet or digging up information from colleagues and relatives. Instead, choose a financial planner who has the following track record:

You can measure your personal risk or personal risk. What includes personal risks here are family background conditions, work, debt, investment and saving preferences, and others.

By knowing personal risks, financial planners not only talk about numbers to achieve financial goals, but also consider your risk factors when choosing savings, investments, budget allocation, debt management, and so on.

Also, choose a financial planner who wants to hear your exposure when revealing financial conditions. You can provide feedback beyond your expectations. For example, you actually want financial management advice for the next year or five years.

A good financial planner not only gives you a picture of your finances to the financial goals you want to achieve but also provides input for longer financial management. Because it concerns the financial decisions you need to make now.

The financial planner will be able to provide targeted input supported by strong research and data around macroeconomics and the financial products he or she suggests.

Also Read Financial Advisor:

7. Make sure you only consult, not ask for asset management services

In Indonesia, a financial planner’s body or individual is not allowed to manage assets. Because the Indonesian government only allows companies that have a permit for investment management as a legitimate entity that can manage assets.

So, even if you consult a financial planner, make sure you do not leave the management of the assets you have, whether in the form of cash, stocks, savings, bonds, property, and so on, to the financial planner. Conversely, if a financial planner offers asset management services, know that it is very risky.

Above, we have known together related to financial advisors complete with the all-rounder. But in general, they are someone who is able to help you in terms of managing your finances, both personal finances, and company finances.

If you have found the right financial advisor, and you have also received advice or financial advice from them, then the next thing you have to do is do all the advice with confidence and maturity. Good luck!

Leave a Comment