Personal financial advisors are professionals who render financial services to help individuals for managing their finances by providing advice on money issues such as investments, mortgages, retirement, life insurance, savings, estate planning, taxes, etc., depending on what the client requests. Personal financial advisors must understand a client's financial situation as well as their need for financial stability.
Managing finance is a complicated process and when approached an advisor for help, it is the responsibility of the advisor to see that the client's risk is minimized and his wealth is maximized within the established risk boundaries. Personal financial advisors also help people manage their money for both short and long term uses. They help them decide which stocks, bonds, mutual funds, and other financial products to invest in.
By managing your assets, the personal financial advisors should be able to maximize your net worth over time. He offers services in exchange of fee, commission or a combination of fee as well as commissions. Fee-based advisors often charge asset based fees on your investments. A commission based relationship is one in which the advisor is paid a commission per investment or transactions that result directly from their advice.
Now-a-days, online commerce is also playing the role of personal financial advisors, helping people to trade stocks and bonds online and manage their own mutual funds. But it would be more advisable for people to maintain a human financial advisor, who would benefit in the initial phase and if they are confident they can manage it on their own later. Thus the role of a financial advisor will remain a crucial one for any business or individuals interested in ensuring a secure financial outlook.
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