A financial investment advisor advises clients who want to use investment speculation strategies to increase or secure their wealth. He may specialize in one type of investment, but he typically counsels clients on a variety of options and strategies. A financial advisor can work for themselves or for a bank, brokerage firm, or investment group.
A financial investment advisor usually determines the amount of money to be invested during the initial meeting with his client. He then conducts an interview with the client to determine whether he or she is looking for a long- or short-term return on investment, the desired level of risk, and any outstanding debt. In order to make an informed recommendation, he frequently inquires about the client’s tax bracket, the types of insurance coverage in place, and any emergency savings that have been set aside. He usually presents several options that meet the client’s needs after taking into account all of these factors.
A financial investment advisor’s advice is typically broad and flexible. He might recommend investing in securities, real estate, mutual funds, or stocks and bonds. To ensure that his client makes informed decisions, he usually explains the advantages and disadvantages of each option. While he may make general recommendations, he is prohibited by industry regulations from recommending a specific company for investment.
As his client considers which options are best suited for the funds to be invested, the advisor frequently interjects to explain the tax implications of each option. He is usually expected to give objective advice and leave the final investment decisions to the client’s discretion. Before making a final decision, the advisor frequently creates fictional scenarios for his client to consider.
A person in this position is likely to have close, long-term relationships with his clients. He is expected to keep them up to date on market trends and offer investment advice based on his knowledge. This type of advisor meets with his clients on a regular basis to review their portfolios and discuss potential changes to their investment strategies.
The long-term success of a financial investment advisor is frequently dependent not only on the accuracy of his advice but also on his integrity. A competent advisor is expected to always act in his clients’ best interests. Client referrals typically increase his client base because of his reputation for honesty and sound advice.
A bachelor’s degree in accounting, investment banking, or business administration is required for most people in this position. A master’s degree with a concentration in one of those specialties may be required by some larger companies. Advisors frequently attend investment seminars to stay up to date on industry trends.