- This article will introduce you to what a financial advisor does and how they help investment firms and banks acquire clients and meet their goals.
- The information may be useful for financial entities looking to hire advisors or for those aspiring to enter this role.
- FlexFunds specializes in designing and issuing investment vehicles, and its asset securitization process can expand the client base of financial advisors. If you want to learn more about the products developed by FlexFunds and which solution best suits your needs, feel free to contact our team of specialists.
A financial advisor is a highly sought-after executive in the investment industry
The field of finance, business, and investment is filled with various professionals who play vital roles in ensuring the ecosystem develops properly and its participants achieve their goals. One of the most important roles is that of the financial advisor.
What does a financial advisor do
A financial advisor is a professional with solid knowledge of economics, business, and finance who uses good communication skills to engage with clients and assist them in various matters.
“The best way to use your advisor is as a partner who has the experience to help you navigate the opportunities and challenges of your financial life. The strategy your advisor will help you create is like a personal financial roadmap that you can follow and adapt to achieve your goals,” explains Valerie Galinskaya, Managing Director of the Merrill Center for Family Wealth.
1. Investment advice
First and foremost, what a financial advisor does is provide investment recommendations based on the client’s goals, needs, and risk profile, advising them on which assets to buy, sell, and hold and in what proportions.
2. Budgetary assistance
Additionally, these professionals enable the creation of quality budgets according to clients’ incomes and expenses, improving savings capacity, reducing impulsive spending, and overall improving personal finances.
3. Retirement planning
Furthermore, those looking to prepare for retirement can seek the services of a financial advisor, as they will provide advice on building a long-term investment portfolio and living a lifestyle in line with retirement income.
4. Succession
Moreover, what a financial advisor does as well is offer guidance on estate succession, explaining what measures to take to ensure the wealth stays within the family after the client’s passing.
5. Tax management
Lastly, in some cases, financial advisors are also certified accountants who can assist in tax management, advising on when and how to pay taxes and devising strategies to minimize costs.
How financial advisors help investment entities
Due to their importance for clients, who can be individuals or institutions, financial advisors are also vital for investment firms and banks, as they enable the marketing of investment alternatives and financial solutions (such as retirement plans, tax tools, etc.) from these organizations.
While users could typically make decisions on their own and contract the services provided by companies in the sector without seeking the help of a financial advisor, the outcome, in this case, wouldn’t always be optimal due to the complexity of the ecosystem.
“Many business owners avoid hiring a financial advisor in an attempt to cut costs. This is a very clear false saving technique. Hiring a financial advisor to help you with specific tasks can not only save you time and money, but it can also change the course of your business, avoiding risks that are not worth taking and making the most of opportunities that would otherwise be hidden,” emphasizes Mission Wealth.
A tool designed for financial advisors
Financial advisors looking to expand their client base and offer more varied investment alternatives can opt for the marketing of exchange-traded products (ETPs) like those developed by FlexFunds.
FlexFunds is a company focused on structuring investment vehicles and corporate administration services backed by top-tier service providers to offer customized solutions to financial advisors.
To learn more about the program, feel free to contact our team. We’ll be happy to assist you.
