financialtreat – will explain about Discover the Full Financial Advisor Explanation! Only Here! which you will get in the following article. let’s look at this article carefully!
Did you already know that a financial advisor is very important to someone? We need to know that a financial advisor is a professional who works to provide financial advice to his clients.
Many people today still do not fully comprehend what a financial advisor is and the duties and mandates he bears.For more details, please see this good article!
Discover a Complete Explanation of Financial advisors!Only Here!
Did you know that the profession of “investment advice” was introduced by the Investment Advisors Act of 1940 as an individual or group that provides investment recommendations or analysis results of securities in exchange for fees, either directly through the management of client assets or through writings published to the public?
Reporting from one of the trusted sites, it is stated that an investment advisor can also be said to be a financial advisor who has enough data to be registered with the Securities and Exchange Commission (SEC), known as a registered investment advisor, or RIA.
“Investment advisors work as professionals in the financial industry by providing referrals to clients in exchange for a fairly specific fee,” the page states. The page further revealed that, typically, investment advisers have a discretionary policy level, which allows them to act as part of that client’s team without requiring a formal statement to make a decision. However, discretionary authority must be formally granted by the client and is usually structured as part of the process.
Mutual fund companies usually belong to the investment advisory section but not to stock brokers, as they earn commissions that depend on asset compensation. Most investment advisors charge a fixed fee for their services or a percentage of the assets they manage.
For the most part, there is very limited conflict of interest between an investment adviser and his client, as the adviser will get more only if the client’s assets develop due to recommendations from his investment adviser and a letter of choice.
understanding for clients
The definition of a client here can include many people and almost all groups that use the services of an investment advisor. It can include groups or individuals who want to invest. In addition, clients will have a portfolio to qualify for the minimum requirements set by the investment advisor when they have met them.
Regulation of the activity of investment advisers
Under the established regulations, investment advisers are not allowed to provide any targeted advice or perform an act relating to the client’s assets arbitrarily without the consent of both parties. And there are some regulations that are specific depending on where and in which country they use the investment advisor’s services.
Investment advisors who do not require registration with the SEC or the government in which they operate In other cases, venture capital funds, hedge funds, and other personal funds are needed to regularly record reports to be given to the appointed government. Then how do I become an investment advisor? Stay tuned for more in this article.
Work with a Financial advisor
Financial consultants assist others in making financial decisions related to investment, taxes, insurance, and accounts receivable. In some big countries, financial consultants can even help you with wedding plans, continuing your child’s education, and pension funds.
Because of the many roles of financial consultants, it is not wrong if this profession is increasingly in demand. Now, if you are interested in becoming a financial consultant, try to find out how to work with a financial advisor!
1. Major to become a financial consultant
When viewed in terms of education, financial consultants usually have undergraduate degrees (S1) in the fields of business, accounting, mathematics, finance, and law. After graduating from S1, the company where they work will usually hold training to hone these consultants’ skills.Some also make it possible to take courses independently.
2. Certified as a financial consultant
It is not enough just to have a bachelor’s degree and skills; financial consultants should also be certified as proof of professionalism and abilities that have been recognized. By having a certification, of course, clients will trust you more. Here are the types of certifications that financial consultants usually look for:
- Certified Internal Auditors (CIA) are issued by the Institute of Internal Auditors (IIA) in Florida, where the exam is conducted online, and in Indonesia itself, the organization that issues this certification is YPAI (Internal Audit Education Foundation).
- The Chartered Institute for Accountant Management (CIMA) awards Certified Management Accountants (CMAs) in the United Kingdom and Australia.Usually, this certificate is accepted by many multinational companies.
Certified Public Accountant (CPA) is a type of public accountant certification issued by the Indonesian Institute of Public Accountants (IAPI).If you already have this certification, then you can open your own public accounting firm.
Read more financial Advisor:
- How to Choose a Fiduciary Financial Advisor Portland
- How to Choose a Financial Advisor For Debt
- How do I choose the right financial advisor in Boston?
3. It takes a long time to become a financial consultant.
When you decide to become a financial consultant, you must know the risks of having a profession like this. It will take you at least seven years to become a certified financial consultant. starting from the college process to work experience. But for those of you who don’t intend to get certified, you can start a career as a consultant after finishing college.
4. Mastering the types of financial consultants
One way to become a financial consultant is to fully understand the ins and outs of business. Because, in the future, many clients will seek financial advice on a variety of personal finance and business issues, including:
- Financial planning
As a result, a reliable financial consultant must have financial mastery of the topics listed above so that, when confronted with various financial problems, you can master them.
5. Skills required by financial consultants
From the reviews above, you understand that being a financial consultant requires a variety of skills. Therefore, the next step to becoming a financial consultant is to focus on mastering the following skills:
- Pay close attention to details.
- have a knack for simplifying complex things.
- reliable in building relationships with clients
- Have talent in sales or marketing?
- Have good calculation and analysis skills.
- Have good communication skills with a wide range of clients.
6. Find a job.
It seems that it will be useless if your plans as a financial consultant are only limited by your imagination. So to realize your dream, it never hurts to start looking for a job in the financial company you want.
Before applying, make sure you have a good resume to show users, one of which is your achievements in lectures, organizational activities, and internship programs that you have done.
And when viewed from the point of view of financial science, talking about finance means that you will discuss how to study the financial condition of an individual, business, or organization. starting from managing, improving, and empowering sources of funds, allocating funds according to the post, and making calculations of risks and prospects in the future.
Financial life can also be viewed from an administrative perspective. In this context, financial refers to how money is managed within and outside of a business or institution.So, you will find the term “financial management,” which is a series of company activities starting with how to get funds, use funds, and manage the company’s finances as a whole.
A financial condition is said to be good if there is an orderly management system and it can be accounted for by related parties. All aspects related to its management must run optimally so that financial freedom can be achieved. Financial freedom means that individuals, businesses, or organizations are debt-free, have a steady source of income, and have reserves that can be used for unexpected needs.
As a productive-age worker, you need to know what financial functions exist in your personal life. If you believe that financial management should only be used in businesses or corporations, you are mistaken.Before going any further, first understand what financial functions you can apply in your personal life.
Life feels easier if everything is planned. Although sometimes being spontaneous is fun, it does not apply in financial matters. Focus on the main needs that must be met, balance income and expenses, and avoid treating planning as a mere desire. You need to uphold these three main principles so that existing funds can be managed optimally.
Although the boundaries of each post have been set, there are times when we are tempted to fiddle with existing numbers. Budget control is where the financial function comes in.If you ignore this function, it is not impossible for the spending plan to swell and result in an unhealthy financial condition.
Budget control needs to be followed by a budget check. Checking regularly on the outflow of money in your finances will help you find faults in the first place, including the use of funds that do not exceed the limit.
Do personal finances need financial statements? Although the answer varies, by creating a similar report, you can see and observe the state of your financial situation.The key is that expenses must be less than income. So, it is necessary to reduce expenses so that you can achieve a stable financial condition.
When you understand the preceding understanding, when you are forAre you ready to manage your personal finances and prepare for the future? The first step is to understand personalized finance.
Quoted from Investopedia, “personal finance” defines all individual or household financial decisions and activities, including budgeting, insurance, mortgage planning, savings, and retirement planning.
Understanding these terms can help you better control your funds and prepare for future financial success. Is it necessary to use the services of a financial planner? Personal finance is mostly about realizing personal financial goals, whether it’s saving enough for short-term financial needs, planning for retirement, or saving for your child’s college education.
Basically, it depends on your income, expenses, living needs, and individual goals, as well as the plan you make to meet those goals within your financial constraints. Why is understanding personal finance important?
It is very important to be financially literate to maximize your income and savings. In general, financial literacy will help you distinguish between good and bad financial advice and make smart decisions.
In today’s era, you can also learn the basics through free online articles, courses, blogs, podcasts, or visits to the library.
The Importance of Millennials Knowing and Understanding Financial Literacy
Principles in Personal Finance
- Understanding the principles of personal finance will help you succeed in your business and career, as well as manage your money well.Meanwhile, the three main principles are priority, assessment, and control.
- Priorities: This means being able to look at your finances, discern what keeps money flowing, and make sure you stay focused on those efforts.
- Assessment: This is the main skill that professionals usually possess. Ambitious people always have a list of ideas on other ways to achieve great success, whether it is a side business or making an investment. While there’s really a place and time to pick up brochures, running your finances like a business means stepping back and honestly assessing the potential costs and benefits of each venture that is started.
- Restraint: This is the last big picture of successful business management that should be applied to personal finance. Time and time again, financial planners sit down with successful people who can still somehow spend more than they earn. Earning 100 million Rupiah per year will not help you much if you spend 150 million Rupiah per year.
And for those of you who are planning estate planning It’s a good idea if you pay attention to the following explanation:
- Estate planning, or inheritance planning, is one part of financial planning that should have been known from an early age.
- Inheritance plans generally aim to distribute one’s wealth to later generations (heirs). The inheritance plan will not go smoothly if it is not carefully made. Commotion in the family can be the result of poor inheritance planning or the absence of information about it.
For this reason, estate planning or an inheritance plan is important to prepare as early as possible, even before the heir is old enough. According to Investopedia, “Estate planning” is a plan that serves to manage an individual’s assets in the event of their incapacity or death.
The planning includes the granting of inheritance to the heirs and the repayment of land tax. Most real estate plans are arranged with the help of an attorney who is well versed in real estate law.
It is also important to know the inheritance law in Indonesia. Divided into three parts, inheritance law is divided into civil law, Islamic inheritance law, and customary inheritance law. Each of them has its own rules and consequences. Usually, a person who is going to grant an inheritance is obliged to list what laws will be used.
Inheritance plans are usually made in two forms, namely, in the form of a will or grant. A will is usually made by a notary public and contains a statement on the stamp. The content is about the division of inherited property, the repayment of debts, or things that can be withdrawn.
While grants are granted to other parties, they can be heirs or not. If it has been granted, of course, the grant cannot be withdrawn.
Now, before you decide or make estate planning, make sure you have discussed it with a notary or those who are knowledgeable about this.Also, understand the inheritance law that applies in Indonesia.
But if you’re still confused about all of those things, You are allowed to hire financial advice. And here we will discuss them.
A financial advisor is a specialized advisor for planning the finances of individuals and companies. If you’re struggling to manage your finances, you need a dedicated advisor to help plan your finances. That way, the finances you have can be managed properly. To find out more about what a financial advisor is, you can study it below.
What is a financial advisor?
Financial advisors provide financial planning advice to their users so they can be more mature. In general, financial advisors will provide several services, such as tax planning, investment management, financial issues, and so on.
Financial advisors can work independently or under the auspices of the company. Financial advisors have the task of providing services and information about financial management.
- Using the services of a financial advisor will give you various benefits, such as:
- Spend less time planning your finances.
- Get educated about financial issues such as investment, insurance, and taxation.
- Get the best advice and recommendations on financial matters.
The Financial advisor Duties
In a company, financial advisors have the main task of helping to overcome financial problems, plan short- and long-term finances, and review clients’ financial needs. Here are some of the main tasks that a financial advisor should perform:
- Meet or receive clients at the office to assist and advise on financial matters.
- Describe the types of financial products and services offered by the company.
- helps clients plan financial goals, both short-term and long-term.
- train clients as well as provide advice on investment options and their risks.
- Monitor the development of the client’s managed account.
- Educating clients about financial issues, such as investment, insurance, and taxation
- Monitor client financial problems, such as investment developments and tax payments from clients.
Tips for Choosing the Right Financial advisor
If you need a financial advisor, here are some tips that must be considered so that you don’t choose the wrong one.
1. Examine His Track Record
The first tip that must be followed is to examine the track record.You must know whether the financial advisor is competent enough to overcome financial problems or not. You can find out information about a financial advisor on the internet or through its website. In addition, you can also see it through social media. By looking for as much information as possible about a particular financial advisor, you will become more aware of his background.
2. Conduct additional searches as needed
In Indonesia, there are many financial advisors who provide various services. In order not to make the wrong choice, you must choose the one that suits your needs. you also need to find out the prices offered by financial advisors. If the price exceeds your financial capabilities, you should look for something else.
The next tip is to choose a financial advisor who already has a certificate. You are not advised to choose a financial advisor who does not have a certificate. This is aimed at financial advisors who are not certified, so the financial advice provided is not guaranteed and cannot be accounted for.
In conclusion, a financial advisor is the best advisor to overcome personal and corporate financial problems. In managing your finances, make sure you have saved and invested. So, how do I locate services to locate financial planner consulting services?Below will be described.
financial planning services
Some people are indeed good at managing their personal finances, but most others do not understand how to do so properly. It is not easy to improve financial conditions, let alone those that are already bad. One way is to hire the help of a professional, that is, a financial planner.
Many financial market participants, such as insurance agents, stock brokers, and bankers, claim that the advice they give is the best. However, not all stock actors have deep and extensive training and the right experience to develop a financial plan.
The financial planner you should consider is someone with a CFP (Certified Financial Planner) degree. To obtain such certification, the person must attend a variety of trainings and programs that prepare them to address the client’s financial problems.
People with CFP certification are also required to carry out their duties in accordance with the code of ethics. In Indonesia, professional certification for financial planners is held by the Financial Planning Standards Board (FPSB).
It is also an international institution. According to him, a financial planner has at least four aspects, namely:
- education with formal education in the field of personal financial planning.
- At least three years of experience providing financial advice to clients.
- Pass the standard financial planning examination and be recognized and registered by the state.
- subject to the rules of the code of professional ethics.
In general, the task of a financial planner is to maximize the management of the financial resources you currently have in order to achieve financial goals in the future.
These goals can be achieved through cash flow management and the optimization of investments and assets. debt management, anticipating risks, and drawing up legacy planning to prepare yourself and your family.
How Do Financial Consultants Work?
At the first meeting, usually the consultant will get acquainted with the client and try to get a clear description of where they are going and where they are now. The consultant will provide interviews regarding personal information such as status, investment profile, occupation, dependents, and other benefits received from the company.
Usually, after the interview, the consultant will compile a timeline for the life goals of the client. From the timeline, several conclusions are drawn, such as how much money a client should save and what kinds of assets should be included in the client’s investment portfolio so that the client’s short-, medium-, and long-term goals are achieved.
How to Select a Financial Consultant
With the sophistication of technology, you can find hundreds to thousands of consultant names through the internet, through books that have been written, or through blogs that have been released. The problem is more about the right way to choose a financial planning consultant.
The first thing you should remember is not to choose a financial consultant just because they have a degree, because it doesn’t necessarily mean that the degree they have is a real one. In addition, as a client, you have the right to interview several consultant candidates with questions related to the following:
Types of Financial Planning
Make sure that the consultant’s investment philosophy matches your risk profile. Their way of investing should not be too aggressive or too conservative compared to your agenda and needs.
There are some consultants who only accept clients with certain conditions, such as total wealth, type of business, and so on. Make sure that you are the right client for them, and they can work their best for you.
Like every job, consultants with more experience will work better. If the consultant has ever served a client with a similar risk profile, then it is better.
Make sure that your chosen consultant has a high passion for finance, and ask him what mandate he has. In addition, you can also ask about other skills you have, such as taxation issues, investment management, pension fund management, and so on.
rates for financial planner services
Before you decide to choose a consultant, ask about the price of their services and whether they are commission- or fee-based. If a consultant is paid based on his fees, then he will not get a commission on the sale and purchase of an investment product.
The cost is also different; some are IDR 300,000 to IDR 750,000 per hour. You must know the price of this service clearly at the beginning of the agreement to avoid misunderstandings.
A financial consultant must work for you as a client, which is in accordance with the code of ethics that must be followed by everyone who is licensed as a CFP, namely, client first. The consultant must not take sides or recommend a financial product for his personal benefit.
The Benefits of Hiring a Financial Planner Consultant
There are several advantages that you can feel in the presence of a financial planner. In addition to the main function of consulting services as a provider of financial plans to meet short-, medium-, and long-term financial goals, there are other benefits that can be felt by clients. Some of them are:
- Get an analysis of your current financial condition and financial statements, such as the amount of debt, the amount of net worth, and others.
- Once your financial condition is known, your financial goals, both short- and long-term, can be formulated, and you will be given funding priorities in accordance with your goals and the timing of achieving these goals.
- You will also be assisted in the development of financial strategies such as investment and insurance options to help you achieve your financial objectives.
Choosing According to Needs
The cost of hiring a financial planning consulting service varies widely and flexibly according to your abilities and needs. Feel free to conduct informal interviews as well as negotiate fees. The final goal to be achieved is a healthy financial condition. Adjust your selection to your requirements.Don’t let your financial situation get any worse.
Whereas fee-only financial planners are advisors that operate on a cost-only basis to create a budget, plan for retirement, pay down debt, and set goals to achieve other financial milestones, They usually collect fees only from you as a percentage of your assets under management.
Fees, commissions, referral fees, bribes, or any other form of hidden compensation are not accepted by special counsel charges.This payment structure can reduce the likelihood that advisors will face conflicts of interest.
Cost-specific financial planners do not get additional compensation for recommending one investment product over another. In fact, cost-specific financial planners work according to their fiduciary responsibilities, which means they must act in the best interests of their clients.
Investment Advisers Act of 1940
What is the Investment Advisers Act of 1940?
The Investment Advisers Act of 1940 is a U.S. federal law that regulates and defines the roles and responsibilities of investment advisers. Driven in part by a 1935 report to Congress on investment trusts and investment firms prepared by the Securities and Exchange Commission (SEC), the law provides a legal basis for monitoring those who advise pension funds, individuals, and agencies on investment matters.
It determines what qualifies as investment advice and establishes who must register with state and federal regulators to issue it.
What is “Robo Advisor”?
Robo Advisor is a digital platform that helps manage various types of financial services and financial plan arrangements with little or no help from human resources.
Robo Advisor was created through advanced algorithm programming technology that can provide personalized solution suggestions to find the best program according to the data entered by the investment platform and information from the customer himself.
In terms of investment, robo-advisors function as a technology that can help automatically design an optimal investment portfolio based on age, risk profile, and life goals. So, with robo-advisors, investors or potential investors do not need to consult a financial planner.
Because the robo advisor will automatically create an investment portfolio that suits the needs of customers or prospective customers using algorithms, Robot advisors only work based on the exact data inputted into the system.
Based on this information, the robo-advisor will determine which portfolio is best suited to the client’s needs.Making a robo-advisor suitable for investors who prefer to manage their own investments but want to optimize their investment portfolio
However, for the type of investor who likes to interact with a consultant, a robo-advisor is not suitable for your needs. Because a robo-advisor is still just a machine that does not have or understand emotions, things related to emotions or personal in nature cannot be considered.
How Robo Advisors Aid in the Development of an Investment Portfolio
In general, robo advisors have 3 basic work systems to help customers form, create, complete, and improve investment portfolios online, namely:
- Auto-Risk Profiling: where customers must answer questions or surveys on the chosen digital investment option platform in order to determine their risk profile with an algorithm without bias.
- Auto Financial Plan: The next robo-advisor will determine the allocation of the best investment portfolio or the one that best matches your survey answers.
- Auto Rebalancing: maintain your optimal allocation as the market changes to reduce the risk of the investment to the greatest extent possible.
If described, here are the steps that customers who want to get the best investment portfolio will go through with robo-advisor technology:
1. Fill out online questions and surveys.
The first step to being able to use a robo-advisor is to answer several questions or surveys so that the robo-advisor system can find out your risk profile. This is very important to be able to produce an investment portfolio that suits your needs.
2. Create an account to start investing.
After filling out the risk profile survey, you can create an account with a robo-advisory company to store the funds to be invested. This account can then be automatically accessed by robo-advisors, allowing Nasabh to automate all investment activities.
3. The collected data is processed by robo-advisors.
The risk profile data obtained from you after filling out the survey will be automatically process by a robo-advisor. As mentioned earlier, robo-advisors process the data base on algorithms.
4. Robo advisors will recommend the most suitable portfolio.
After processing the data, the robo-advisor will provide some portfolio recommendations to the customer. Then, the robo advisor can automatically buy suggest investment products with the money deposite in the customer’s investment account.
5. Balancing the portfolio
Over time, investment returns can change. If your investment returns will be uneven, the proportion in your investment portfolio can also change and is not necessarily optimal anymore. Therefore, robo-advisors will automatically monitor and balance the portfolio regularly, not only to optimize profits but also to minimize risk.
Advantages of Using a Robo Advisor in Investing
1. Lower costs
Robo advisors who charge base on a percentage of assets usually range from 0.15% to 0.5% of all investment assets own.
This fee is relatively cheap because robo-advisory companies do not need to provide manpower to serve investors directly (because they have been replace by robots), compare to the fees charge if they use conventional consulting or financial advisory services.
2. Ease investment activities
Using a Robo Advisor eliminates the need for you to constantly monitor changes to your investment portfolio, as this task can already be handle by a robo advisor.You can also find it easier to enter the trading market and follow the trades in that market. In addition, 24/7 access makes it easier for you to access your financial portfolio.
3. More Efficient and Practical
Using Robo Advisor to organize a portfolio is considere more efficient than using traditional financial advisory services, whose procedures are more complicate. where you have to call a financial advisor in advance or meet in person to manage your portfolio.
In addition, you must explain your financial condition, fill out the require documents, and wait for the desired results. Whereas with a robo-advisor, these tasks can be complete with a few mouse clicks and from any location in organizing and determining the proportion of the client’s investment portfolio.
4. Portfolio recommendations are more targete.
Because the recommende portfolio is base on data from the survey you complete, the portfolio’s accuracy to the recommende investment product can be very high, reaching 90% or more depending on the suitability of your financial situation and personality.makes investments selecte base on robo-advisor recommendations safer and more profitable.
Robo Advisor Can Help You Invest More Firmly
In addition to being more economical, robo-advisors can also be the most appropriate medium for novice investors who are just learning to invest with little investment risk. Now a digital investment platform that provides robo-advisor features in Indonesia also exists. You only need to register because platform access is easy and secure.
Retirement planning is one that needs to be considere when making a plan of steps that will be taken to achieve the goals of a financial advisor in the family. So when making retirement plans, one needs to consider the value of time in finances. No, here are some steps to doing retirement planning:
Step 1: Determine retirement age base on life expectancy.
The first and most important step in planning retirement is to determine the retirement age. The retirement age should be determine by life expectancy.No matter how unpleasant it is, calculating life expectancy is one of the important steps.
Individuals know how many years they have to save and achieve goals by determining their retirement age. And with a longer life expectancy, they will know how many years they will have to save and plan after retirement. The smart move is to set an early retirement age. This will help individuals achieve their retirement savings goals faster.
Step 2: Estimate retirement income
After setting the retirement age and calculating life expectancy, it is time to estimate the numbers. Important ones include total retirement income and overall costs.
It’s challenging because no one knows what the future holds for them. Therefore, an individual should ask themselves whether they are willing to work after retirement or not. Once decide, it is best to list the income streams that a person will use after retirement.
This can be freelancer work, business profit, or work in a private company. Recording these income streams helps individuals estimate their total retirement income. This may also include annuities or pensions.
Step 3: Estimation of retirement costs
Estimating the cost of retirement is another important figure to work with. The way to calculate this amount is to calculate retirement. This is the period following retirement until death.
The calculate pension size multiply by 70% of the total income before retirement provides an estimate of the cost of retirement. Many expenses are cut after retirement, such as car loans, student loans, and mortgages, while some are add, such as travel and medical expenses. Estimate pension costs help people roughly evaluate the amount of savings.
Step 3: Make a financial plan.
The first thing a person should do here is estimate the benefits of social security. There are several tools available online that can help people estimate these benefits. It is good to calculate this amount because it reduces the overall amount of savings. Before retirement, these social security benefits are subject to changes and may be eliminate.
As a result, it is best to plan for retirement by excluding these benefits.Subtracting all retirement income from total retirement costs will reveal the amount of savings. The next step is to consider saving techniques.
A person can deposit money in the account to receive interest on it or choose automatic savings. It depends on the individual’s current incomereceive interest on it or choose automatic savings. It depends on the individual’s current income. All this will help to draw up a detail savings plan. It is best to stick with it if the individual wants to live a comfortable and peaceful life after retirement.
Step 4: Retirement investment
Investing for retirement is very important, and there are many ways a person can do it. One of the best investment options for retirement is the employer’s plan. If someone’s company offers a 401(k) benefit, it’s best to take advantage of it.
With this plan, you will deduct a fix percentage of employee income for investments in bonds, mutual funds, or stocks at the end of each earnings period. More reputable companies offer matching fund plans.
The fix rate of salary for employees and companies adds the same amount after each period of income. It was add as a pension fund. In addition, retirement planning also requires the financial advisor to earn commissions from it. So, what exactly are “earning commissions”?
To understand what a financial advisor‘s Earn Commissions range means in general, you must first learn about the salary of a financial advisor who works for several companies in Indonesia.
Below will be given some examples of ways to earn commissions for financial advisors who work for several companies engage in financial services and insurance. Including:
AXA Mandiri is one of the insurance companies, especially regarding life insurance, which was establishe in 1991. Before becoming AXAa Mandiri, this life insurance company was originally call Staco Raya Life Insurance. It was only after this life insurance company was taken over by AXA and Bank Mandiri that the name change to AXA Mandiri.
A financial advisor who works at AXA Mandiri will generally be paid Rp 3,538,448. where the salary of the AXA Mandiri financial advisor will be paid every month.
2. BRI Life
BRI Life is one of the life insurance companies that is a subsidiary of Bank Rakyat Indonesia (BRI). At first, this life insurance company was found by BRI retirees through the BRI Pension Fund program. in 1987, to be exact.
A financial advisor at BRI Life is typically paid RP 6,212,243, which is paid once a month.When compare to the salary of financial advisors in other companies, the amount of salary for financial advisors at BRI Life is much larger, reaching 111%. when compare to salaries offere by other insurance companies.
3. Salary for a BNI Life Financial advisor
Not much different from BRI Life and AXA Mandiri, Bank Negara Indonesia (BNI) also does not want to be left behind in launching an insurance service aime at all BNI customers and the general public.
This is proven by the establishment of BNI Life in 1996. Up until 2020 alone, BNI Life has had at least six service offices. Not only that, this company also has 10 marketing offices and 12 marketing offices that stand independently.
Then what about the financial advisors who work for this insurance company? Is the financial advisor salary given by BNI Life equivalent to that given by other companies? In general, BNI Life will provide a salary of RP 3,162,622 per month for financial advisors. This figure can be said to be not much different from the nominal salary of financial advisors provide by other insurance companies besides BRI Life.
4. Astra Life
PT Asuransi Jiwa Astra, or Astra Life, is an insurance company that has been in operation since 1990.In hiring a financial advisor, this life insurance company provides a financial advisor salary with a nominal value of Rp. 4,975,186, which is paid every month.
From the explanation above, it can be conclude that the salary of financial advisors is generally in the range of Rp. 3,500,000 to Rp. 5,000,000. Although there are some companies, such as BRI Life, that offer salaries that are higher than this figure.But this is just an exception and cannot be a benchmark.
Select a Financial advisor
A good financial advisor has a very important role, especially so that clients can take the right steps in making decisions about their finances. Choose A Financial advisor services are also very beneficial for those who want to get involve in the world of investment, whether it is stocks, mutual funds, bonds, or other types of investment products.
Well, given how much a client expects of financial advisors, of course, the public or client needs to be very careful in choosing the financial advisor he will use for his services.
You certainly need to find a qualifie, responsible, and definitely trustworthy financial advisor.
#1: Ask how it positions clients.
You can start by asking about how he positions each client who uses his services, i.e., does he put them above his own interests or not? A person who has dedicate himself to being a financial planner will basically put your interests as his client ahead of his own.
#2: Viewing the Licenses Own
A financial planner needs to have a license or certification to show that he or she is competent or has expertise in this field.
In Indonesia, there is only one professional certification management body recognize by the government, namely the Financial Planning Standards Board, or FPSB. To get this license, a prospective financial planner needs to complete education in accordance with establishe standards.
#3: Inquire about the types of financial planning services provide.
Each financial planner or financial advisor, like specialist doctors with different specialties, usually has different specific skills.
#4: Find out the types of clients that the financial planner usually handles.
This point is still closely relate to the previous one.Typically, a person with a specific specialty will serve more clients who have problems in the field in which he is skill. For example, a planner or financial advisor who is deeply immerse in the world of insurance will certainly meet more clients who are having problems with their insurance.
Or, financial planners who are in the field of education costs will usually meet more clients who are parents or young families.
An investment portfolio is a set of investments own by an institution or individual. The forms can be various, such as bonds, mutual funds, property, stocks, and other investment instruments. For people who invest in stocks, there is also the term “stock portfolio,” which is a collection of investment assets in the form of stocks.
In an investment portfolio, an investor can diversify among various investment products to generate optimal returns and minimize risk. This is in accordance with the advice not to put all the eggs in one basket, so that all the eggs do not break if the basket falls.
Diversification reduces the risks of an investment by not putting all of the money into one investment instrument.The more assets (baskets), the lower the risk.
Considerations Before Determining an Investment Portfolio
Investment objectives and timeframe
Check the goal of the investment activities we do before beginning to invest.For example, to prepare a wedding fund Thus, we can estimate the time period need to raise money through investment and choose which investment product is suitable for that time period.
Check back to see how much capital we have for investment. With limite capital, there are also fewer stock options that we can buy, not to mention there are also trading costs. Nonetheless, we can now easily find a variety of investment products that require low costs; for example, saving gold on Tokopedia can begin at Rp. 500.
Investor risk profile
Conservative investors tend to avoid risk and choose safe investment products. Moderate investors have a moderate risk tolerance. Meanwhile, aggressive investors have a high risk tolerance because they pursue large returns. Usually, the greater the return on an investment, the higher the level of risk.
certified financial planners
Certified Financial Planners, or Certified Financial Planners (CFPs), are professionals with formal recognition of expertise in financial planning, tax, insurance, estate planning, and retirement.
Owne and awarde by Certified Financial Planners, this designation is awarde to individuals who successfully complete the CFP Board’s initial exams, then continue an ongoing annual educational program to maintain their skills and certifications.
How to Become a Certify Financial Planner (CFP)
Obtaining a CFP designation involves meeting requirements in four areas: formal education, performance on CFP exams, relevant work experience, and demonstrate professional ethics. Educational requirements consist of two main components.
Candidates must verify that they have a bachelor’s degree or higher from an accredite university or college recognize by the U.S. Department of Education. Secondly, they must complete a list of specialize courses in financial planning, as determine by the CFP Board.
Most of these second requirements are usually rule out if the candidate has a specific financial designation, such as the appointment of a financial analyst (CFA) or a certifie public accountant (CPA), or has a higher degree in business, such as a master of business administration (MBA).
As for professional experience, candidates must prove that they have at least three years (or 6,000 hours) of full-time professional experience in the industry or two years (4,000 hours) in an internship role, which is then subject to further individual requirements.
Finally, CFP candidates and holders must adhere to the CFP Board’s standards of professional conduct. They should also regularly disclose information about their involvement in various areas, such as criminal activity, investigations by government agencies, bankruptcies, customer complaints, or termination by employers. The CFP Board also conducts extensive background checks on all candidates before granting certification.
Even the successful completion of the above steps does not guarantee acceptance of the CFP designation. The CFP Board has final discretion on whether or not to grant an appointment to a person.
An advisor’s charge or honorarium is the right of every advocate. This is in accordance with the provisions of Article 21 paragraph 1 of Law 18/2003, which explains that advocates are entitle to receive honoraria for legal services that they have provide to their clients. Then what is the calculation method for advisors’ charges? , let us explain!
- Advisors charge base on the portion of profits won by the client (contingency fee or contingency rate);
- Advisors Charge base on the unit of time use (time charge/hourly rate);
- Advisors charge base on a certain period of time (retainer fee); and
- Advisors charge base on the wholesale value of the case to completion, which is paid in a lump sum in advance or in stages (lump sum, fix fee, or exact rate).
The four methods of calculating the “Certified Financial Planner” designation must, of course, be base on agreement. Furthermore, in addition to these four rates, a success fee or the winning fee of a case can be promise as an additional incentive for the advocate if approve by the client.
Again, the amount is base on the agreement of both parties. The opinion reinforces the assertion that, indeed, the legal basis for the amount of an advisor’s salary is determine by the advice explaine to the investors.
Securities and Exchange Commission
The Securities and Exchange Commission (SEC) is an independent agency of the U.S. federal government responsible for protecting investors and maintaining the fair and orderly functioning of the securities market.
What is the role of the Securities and Exchange Commission, and how does it affect the economy?
This ensures that investors receive accurate and consistent information about the company’s profitability, or its ability to generate sufficient profits.The benefit is the remaining income after all costs have been paid. It affects the economy by maintaining confidence in the US stock market.
What is the role of the Securities and Exchange Commission in the context of the scenario?
The U.S. Securities and Exchange Commission (SEC) is an independent federal government agency responsible for protecting investors, maintaining fair and orderly securities market functions, and facilitating capital formation.
What are the duties of the Securities and Exchange Commission?
It is an independent federal government agency responsible for protecting investors, maintaining fair and orderly securities market functions, and facilitating capital formation.
What is the purpose of the Securities and Exchange Commission?
The requirements in this set are: The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain a fair, orderly, and efficient market, and facilitate capital formation.
What is the purpose of the SEC?
What is the purpose of the SEC? Promote efficient capital allocation by maintaining an open, orderly, and fair securities market.
What was the purpose of the Securities and Exchange Commission (SEC) when it was create in 1934?
The Securities Exchange Act of 1934 provides for the rules for agents, dealer brokers, and securities trading on the secondary market. In an effort to provide investors with a fair and orderly market, the Act also specifies the laws governing participating exchanges and brokers.
Locate a Financial advisor
#1: Understand the Types of Financial advisors and Their Services
There are Find A Financial advisors who provide financial planning but not investment advice; there are also those who provide investment advice but only a few provide financial planning.In addition, there are financial advisors who offer retirement fund income planning with varying focuses.
To find the best financial advisor according to your situation, you need to understand the different service offerings provide, know which financial advice you need, and know the services provide by the financial advisor. Typically, three types of service offers are made available:
- Financial planning that focuses on all aspects of your financial life, such as how to save and what type of insurance is need,
- an investment advisor that focuses on investment regulatory functions such as determining what kind of investment is need. The best investments are chosen to run with the financial planning process.
- Pension fund income planning that focuses on how to coordinate social security, taxes, investments, retirement dates, and so on Financial advisors will assist in the achievement of the goal of providing a lifetime pension fund.
#2: Look for a Trust Financial advisor
There are institutions that conduct training to give a degree of credibility to a person and to make them an expert, that is, by conducting training. Every financial advisor who attends the event must pay.
#3: Knowing Financial advisory Fees
Many financial advisors can dance about costs. The most objective and trust financial advisors are paid. To use its services, you need to know that there is compensation for fees that must be paid; it can be hourly fees, participation in giving commissions, and so on.
You should understand the difference between an advisory fee that is appropriate and one that does not suit your needs. Only certain advisors can receive honors base on the goals to be achieve or the project.
Be cautious with financial products, not just when saving or shopping.There is another thing to note, namely utilizing financial services products that are important to protect you and your family.
In the midst of disasters or difficult economic conditions, many financial services can be utilize. Unfortunately, in Indonesia, this kind of product has not been able to penetrate all circles, especially the lower middle class. It is possible that this is due to a lack of education about financial services that are important for life.
1. Bank account
The most basic service is a centralize account that organizes and monitors your financial situation. Prepaid cards may be trending, but you’ll be charge a high interest rate. By having a bank account, transactions are easier, money is safer and more secure, and you can get other services such as credit or various bonuses.
2. Debit card
Once you have a bank account, you need to have a debit card. In Indonesia, currently, automate teller machines (ATMs) can be use as debit cards for shopping anywhere. It is better if your debit card can also function as a credit card, so that you can have funds at any time when the account is running low.
3. Backup bank account/emergency savings account
This account serves as a kind of personal insurance in the event of an emergency.Fill it regularly with the difference in the remaining funds. It’s better if you have a target for how much money to save each month.
4. Health Insurance: financial advisor
You may think that it is still healthy and young. But remember, that condition doesn’t last forever. After all, even healthy and young people are not spare from certain accidents or calamities. Unless you’re a rich man who can afford to pay medical bills easily, not having health insurance is foolishness.
5. Home insurance
If the house catches fire, will you live on the streets? That’s what will happen to people who don’t insure their property. With property insurance, you will be financially safe even if the house is damage. However, you also need to pay attention to the insurance provider’s clause, to see whether it is willing to pay losses for a house damage by flooding or something else.
Well, that was a complete explanation of what a financial advisor can do according to the procedures in it. hopefully useful. Thank you.