Virtual financial advisors and How They Work

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Virtual financial advisors offer their services to clients on the internet. They provide investment management services, income tax preparation and estate planning. A financial advisor must hold a Series 65 license to advise the public.

Virtual financial advisors use video streaming technology and document viewers to hold meetings with clients from anywhere in the world. This type of advice has become popular with savvy technology customers who are looking for flexibility in advisors.

Virtual financial advisors advertise their services across the internet using a variety of means. Popular methods include financial advice blogs, podcasts, YouTube, Facebook Inc. (NASDAQ: FB FBFacebook Inc179 39+0.26% Made with Highstock 4. 2. 6 ) and Twitter Inc. NYSE: TWTR TWTRTwitter Inc19 39-2. 56% Made with Highstock 4. 2. 6 ).

Virtual financial advisors and How They Work

This method allows financial advisors to attract clients by letting clients know their style of advising, and even collecting some of their advice, before deciding to commit. The main advantage of virtual financial advice is the flexibility and convenience that this service offers. With traditional financial advice, clients and advisors should coordinate meeting times, with one or both parties having to travel the prescribed distance.

If the client uses a virtual financial advisor, no travel is required and meetings can be conducted via videoconference at any time and at any location during the day. It is of interest to clients who travel a lot, and not just business people and women.

Clients looking forward to retirement often spend time visiting family and spending the season in a variety of climates. A virtual financial advisor gives these clients the convenience of knowing that they can always contact their advisors and take investment management advice when they want to.


An essential skill for financial advisors is the ability to read their clients. They can definitely feel when the client feels uncomfortable or even lying. The ability to read body language is key.  Virtual financial advisors are not easy to lend this expertise.

When a client is video chatting, usually only his face is visible, not his legs are shaking or fidgeting his hands. The discussion of money is always sensitive, and topics like housing planning can be very difficult.

When an adviser feels discomfort, this is his gesture to change the subject or even approach the topic from a different angle. This is especially difficult to do during video chats when this subtlety is not easy to see.

Another drawback of virtual financial advice is the possibility of poor connections. For clients traveling, having a clear connection is not always a guarantee. This frustrates video chat conversations when the screen freezes or words are skipped.

Is a Virtual Financial Advisor for You?

Virtual financial advisors aren’t for everyone, but as technology advances, more financial advisors are turning to the internet for their clients. If you’re comfortable with technology and need the flexibility and convenience it provides, then virtual finance advice might be right for you.

It is important for clients to feel a connection with their financial advisor; After all, your money is in the hands of the counselor. Sometimes these connections can only be made in private, which is not something a virtual financial advisor can offer. It is imperative that you seek a financial advisor that fits your specific needs and someone with whom you can feel comfortable and honestly sharing your personal information.

Where Do Financial Consultants Work?

A financial consultant can work within the company’s finance division of a business, otherwise known as part of a business that focuses on how the company funds its operations, manages its investments, and makes accounting decisions.

Other consultants can work independently or within a consulting firm. Here are some additional examples of organizations that often hire consultants:

  • Financial investment companies
  • Major banks
  • Insurance carriers
  • Securities and commodities brokers
  • Small consulting firm
  • Small investment advisory firm

Skills to Become a Financial Consultant

To become a successful financial consultant, it is important to have a combination of soft skills and technical skills, in addition to a general knowledge of how the financial industry operates. Soft skills are important when building relationships with clients, while technical skills are important when helping clients manage their wealth. Consider the following skills that consultants often use in their positions:

Interpesonal Ability

These skills involve effective communication and interaction with others. Interpersonal skills are essential when managing relationships with clients and staff within the company. Having sensitivity to the needs of each client and creating a strong relationship with them is important to build loyalty with the client.

Listening Skills

Most financial consultants should be able to listen to clients to determine their financial position, including their needs and goals. The ability to interpret what the client wants is important for developing an effective investment strategy. Eliminating distractions and creating more meaningful conversations with clients by retelling what they told them can make them feel more comfortable and increase trust.

Analytical Skills

These skills often involve the ability to consider a variety of information, such as current economic trends, regulatory changes, changes in economic policy and client tolerance for risk. This is all important when developing an effective investment strategy. Consultants often solve problems and gather and analyze information, so having strong analytical skills can help them find more effective solutions and make decisions.

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Mathematical Skills

Consultants often work with numbers, so understanding how to use mathematics to perform calculations and analyze various financial data can be useful when determining financial strategies.

Having a basic understanding of mental mathematics can also help save time when preparing financial documents for clients. In addition, understanding statistics can make it easier to explain things to clients, such as the projected growth of their investments.

How to Choose a Virtual Financial Consultant

Everyone has a unique financial situation. Some consultants and financial advisors specialize or work only with certain investors. You should find a financial advisor who works for you. You can use online search tools or ask for referrals from friends and family.

Once you have a few options, search online and experience their services and experiences. Then, prepare a list of questions to ask about their fee structure, account minimums, expertise and certifications, and investment philosophy. You’ll want to meet a few options in person before making a decision.

Finished our explanation of the virtual financial advisor. Hopefully, the information will be useful. And see you in the next article.

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