Financial Advisor Roles
Financial Advisor Roles is your planning partner. roles of a financial advisor Let’s say you want to retire in 20 years or send your child to a private university in 10 years. To accomplish your goals, you may need a skilled professional with the right licenses to help make these plans a reality, and that’s where a financial advisor comes in.
Together, you and your advisor will cover many topics, including the amount of money you should save, the types of accounts you need, the kinds of insurance you should have (including long-term care, term life, and disability), and estate and tax planning.
The financial advisor a fiduciary, is also an educator. Part of the advisor’s task is to help you understand what is involved in meeting your future goals. The education process may include detailed help with financial topics. At the beginning of your relationship, those topics could be budgeting and saving. As you advance in your knowledge, the advisor will assist you in understanding complex investment, insurance, and tax matters.
Step one in the A Financial Advisor’s process
The advisor works with you to get a complete picture of your assets, liabilities, income, and expenses. On the questionnaire, you will also indicate future pensions and income sources, project retirement needs, and describe any long-term financial obligations. In short, you’ll list all current and expected investments, pensions, gifts, and sources of income.
The investing component of the questionnaire touches upon more subjective topics, such as your risk tolerance and risk capacity. An understanding of risk assists the advisor when it’s time to determine your investment asset allocation. You’ll let the advisor know your investment preferences as well.
The initial assessment also includes an examination of other financial management topics such as insurance issues and your tax situation. The advisor needs to be aware of your current estate plan (or lack thereof) as well as other professionals on your planning team, such as accountants and lawyers. Once you and the advisor understand your present financial position and future projections, you’re ready to work together on a plan to meet your life and financial goals.