A financial advisor or financial planner is someone who gives financial advice to clients according to their individual financial circumstances. In most countries, financial advisors need to complete certain educational training and also be registered by a regulatory body to give advice. They then need to sit an exam in order to prove that they understand the principles of financial planning and can give sound financial advice. Many financial advisors are members of professional associations such as the Association of Financial Advisors (a) or the Financial Planning Association (FPA).
There are different types of financial advisors, including those who focus on investment properties, estate planning, insurance products and life policies and so forth. An advisor can help you to build up a long-term savings fund for example, so that your money grows over time and you benefit from compound interest when you spend it. On the other hand, a financial advisor helps you plan how to invest your money so that you make the maximum return while maintaining your lifestyle at the same time. One advantage of using an advisor to help you save and invest for your future is that the advisor helps you think about your goals in a holistic manner and helps you establish realistic goals and financial objectives.
For example, your long-term goals could be to purchase a house in a good neighborhood, own a small business and retire at age 65. These goals may not be easy to achieve, but if you use a long-term financial advisors with expertise in these areas, you will be able to set goals and also see them grow over time. The bottom line is that financial advisors who give you financial advice should be registered as financial planners with a regulating body and should receive special training for this profession. If you want to discuss your goals and objectives with an advisor, discuss it thoroughly and know beforehand what kind of plan you are looking for.