What does a financial advisor do?
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Answer:
Definitions of financial advisor on the Web:
a consultant to an issuer of municipal securities who provides the issuer with advice with respect to the timing, terms, structure, or other similar matters concerning a new issue of securities.
dnr.wi.gov/org/caer/cfa/EL/Gui...
Professional advisor offering financial counsel. Some financial advisors charge a fee and earn commissions on the products they recommend to implement their advice. Other advisors only charge fees and do not sell any products or accept commissions. Some financial advisors are generalists, while others specialize in specific areas such as investing, insurance, estate planning and taxes.
www.enterprisefunds.com/educat...
Generally a bank, investment-banking company or independent consulting firm that advises the issuer on all financial matters pertaining to a proposed issue and is not part of the underwriting syndicate.
www.sternbrothers.com/glossary...
or FINANCIAl ADVISOR A financial institution offering professional advice to companies and also preparing documentation for submission to the regulator, the exchange, shareholders, investors, and the general public for the purpose of public offering of stocks, stock listing, corporate financial restructuring, preparation of a company rehabilitation plan, etc.
www2.set.or.th/en/isc/tools/gl...
Tells you how to invest your money. Of course, they will tell you to invest it in the company they work for, and if you have stocks in other places, they will want you to sell those stocks and redo your portfolio.
They find out your financial goals, then set up a way for you to save and invest to meet those goals.
There are many types of Financial Advisors. Some advisers have obtained a Mutual Funds licence or an Insurance licence. While some of these individuals may be competent, it is best to look for a financial advisor with a CFP designation. CFP's are held to a professional standard and have a Code of Ethics and practice standards that they are held accountable to. Hence, the CFP professional will look at your financial affairs from a "holistic" standpoint ie: how do the different aspects of your financial plan/picture fit together. Hence, the advice from a CFP professional should not be based solely on "which security to purchase 'now'", but should be based on long term and overall financial goals and objectives.
Trusting this is helpful.
Yahooguy is right. The CFP designation is a good thing to look for. You can search online for a Certified Financial Planner on the CFP Board's website at www.cfp.net/search/.
Don't be afraid to ask questions of potential advisors. Ask how they get paid, what their areas of expertise are and if their broker/dealer (b/d) pushes any proprietary products (avoid these). Certifications and experience are good, but your advisor HAS to be someone you can trust wholeheartedly. They could be ethical and smart but if you can't find a way to trust them you will not follow the advice. Good Luck.
If you want a financial advisor, ask your questions under "Investing." You'll find plenty of advice that's just as good as any from a licensed advisor.
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