The Importance Of Having A Financial Advisor   by Jeremy Winters

in Finance    (submitted 2012-01-16)

A financial advisor is a representative who manages a client, large customer, or acts as an agent broker. Also known as a financial consultant, they used to be called a stockbroker, broker, account executive or registered representative.

Traditionally, the job of a financial advisor has involved buying and selling securities (such as stocks and bonds) on behalf of clients. The change in titles outlined above symbolizes the fact that, rather than being focused primarily on facilitating transactions, they really should be more like investment advisors and financial planners who take an overall view of their clients' financial needs and goals.

Through time, financial advisors have become involved with the task of providing advice or counsel in order to aid the process of investment and asset management. Nowadays, however, they also deal with retirement planning and insurance products. They advise their clients on how to budget finances, invest their money in real estate and preparing comprehensive plans for retirement according to their clients' wishes. Aside from that, these real life financial counselors are employed by mutual funds to pool together the shareholders' wealth and invest in a group of assets, in accordance with the stated objectives of a company.

However, with the recent advances in the internet and the impact that new technology is having on hundreds of industries, the traditional role of these experts is being changed. New online only firms enable trades and information exchange at very low costs and with almost instantaneous precision.

Nevertheless, this is a job where having some real life experience under your belt really helps. Have you saved to buy a car or a house? Helped an elderly parent afford medical care? Having a hard time figuring out how to pay for nursery school or college? The more financial difficulties you've faced in your own life, the more empathy you should have with your clients as an advisor.

Good advisors who make it to the corporate world are usually characterized by such strong attitudes like confidence in self, a logical and analytical mind, friendliness, being a good listener and keen observer, ability to pay attention to details and being a reputable and reliable communicator who carries himself or herself well. Most of the firms also look for a certified financial advisor. Certified Financial Planner (CFP), Chartered Financial Consultant (ChFC) or Chartered Financial Analyst (CFA) are some of the certification courses available for this profession.

Some of the most popular financial consultants of all time are Andre Kostolany, Peter Schiff, Patricia Szarvas, Jim Moran, and perhaps the most familiar name would be Chris Gardner. Chris Gardner's life was featured in a motion picture released in 2006 under Columbia Pictures entitled "The Pursuit of Happiness."

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