You often hear people talking about financial advisors but many do not understand exactly what this role is and how it could help them. Finance is incredibly important to every person and business but many people do not know how best to save and use their money which is where a financial advisor can be so helpful to anyone whether this is a wealthy individual or someone struggling to make ends meet.
What is a Financial Advisor?
Essentially, a financial advisor is someone that uses their expertise in finance to help their clients to achieve their financial goals. This can vary greatly because it could include determining an investment portfolio, helping someone to plan for retirement or help with short-term goals. Financial advisors can meet with any person or business that needs help with their finances or has goals that they would like to reach and they can then offer their advice and expertise to help them.
When You Might Need One
There are many times when an individual might need a financial advisor and it is not just for wealthy people looking to invest. A few other examples of times that you might need a financial advisor include if you have had a sudden change in your financial and/or living situation such as a job loss or a divorce, if you have inherited a large sum, if you want to improve your financial situation or if you want to plan for the future.
Types of Advisors
It is also important to be aware that there are many different types of financial advisor so you will want to find the right one based on your needs and with a good reputation, including the top financial advisors London has to offer. A few of the more common types include:
Credit counsellor: Help those overwhelmed in debt to manage their financial situation and develop a plan to pay the debt off.
Money coach: Teach people that do not know how to manage their finances or have a poor relationship with money how to be smarter with money. This will often involve looking at a client’s habits and behaviours along with using their financial expertise.
Investment advisors: Help an individual to choose the best investments based on their risk comfort, economic trends and other information. They can also help clients to manage their portfolio and how to make their investments as tax efficient as possible.
Financial planner: Works with individuals and businesses to create a financial plan which will help them to achieve their goals. This could be anything from planning for retirement, clearing debt, estate planning and managing finances as a self-employed individual.
As you can see, financial advisor is a broad term but the services provided can be of use to both individuals and businesses looking to be more intelligent with their finances.