Finance and Loans

What is the Job of Finance Advisors?
Allison Thompson

Defined Tag: Finance Advisors.

To many people nowadays the financial world can often seem very daunting it may feel like some as if they are diving into a shark's world and it is the task of a financial advisor to know how to help their clients navigate these tricky waters.


Many financial advisors use both their knowledge of investment, tax laws and insurance to help their clients work out the best financial plan for them to achieve their goals in life.  They will also offer advice with some specializing in specific areas such as retirement and estate planning.  There are two types of financial advisor around, namely the personal advisor who works with individuals and a financial analyst who works in the corporate world.

A personal advisor will arrange a consultation with the client and take notes on the client's finances and what goals they hope to achieve.  Once they have this information it allows them the chance to draw up a comprehensive plan where key problems can be identified and what options are available to help improve the situation.  Afterwards, the advisor will usually meet with their client once or twice a year to provide them with an update on their financial situation and to ask whether the client wants to make any changes (say they have got married or they are retiring) which may affect the plan already set up.  A personal advisor can on behalf of his client purchase and sell financial products such as mutual funds or insurance and is often responsible for looking after their clients tax demands and preparing a client's will.  Many personal finance advisors will work from their own home and often rely on word of mouth to get their clients.

A financial analysts usually works for either a bank, insurance company, mutual and pension funds, securities firms and many other businesses.  Their job is to help the company they work for make sound financial and investment decisions.  They often responsible for reading the company's financial statements and for analyzing the prices, costs, sales, expenses and tax rates of a whole industry to determine the company's value and project in relation to its future earnings.  Such analysts will also be found in merger and acquisition departments to prepare the analysist of the costs and benefits of a proposed takeover or merger bid.

Normally a bachelor's degree in finance, accounting, business administration or statistics is usually required for financial advisors.  Also a sold knowledge of accounting procedures, corporate budgeting and financial analysis methods are often expected to be had by financial advisors as well.  Ceratinly a master's degree is very desirable and it is strongly recommended that a personal finance advisor should have a degree in accounting, finance, economics, business mathematics or law.

Allison Thompson an expert author after becoming a work from home mum who runs a small real estate company in Spain. Due to her involvement in the property market she has carried out extensive research relating to all financial matters. If you would like to learn more, please visit Central Lending Services.