Financial consultants are important when making investment decisions

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Financial consultants help you make important investment decisions

By: Hitesh Khan/

When people have to make investment decisions, it is very important to be well advised. Therefore, many financial consultants can help you while planning financial affairs, particularly when you have to understand the differences between income and expenditure as well as the risks that entail an investment.

Financial consultants are prepared to fulfill all your requirements using basic financial concepts such as personal finance, finance of states, business finance, financial economics and financial mathematics. They are organized in many fields in order to attract as many potential clients as they can.

financial consultants
Image credit: Alpha Stock Images

Possibly, sometimes you are wondering how to make a complete, long-term investment for the future, or maybe you need solutions to complex retirement, estate planning or educational savings questions. In issues like these, financial consultants can give you a hand in order to manage your money efficiently and successfully. You will achieve the goals of whatever activity you are doing thanks to the use of appropriate financial instruments.

Therefore, every time you are thinking about finance issues, look for the best financial consultants. From personal financial decisions that involve buying insurance, paying for education and saving for retirement to corporate finances that involve balancing risk and profitability, companies will support you to make the right decisions.

Choosing trusted and knowledgeable financial consultants is one of the most important investment decisions you’ll make. So what makes a great consultant? Here’s a “top 10” list of what to look for:

  1. They have a good reputation.
    Getting a strong referral from a friend or family member can be the first step in finding the right financial advisor. Consider the background and reputation of the company the advisor works for. Are they local? Do they have a strong track record of success? Be wary of hot-shot planners who seem to be too good to be true – they usually are.
  2. They take a proactive approach.
    Good advisors keep the lines of communication open, updating you on current financial issues and opportunities. They help make complex financial concepts easy to understand. A financial advisor that withholds information or doesn’t take the time to clearly explain his or her recommendations is not worth your time (or money).
  3. They don’t panic.
    Finding an advisor who is patient and doesn’t panic is critical to success. You want a planner who is always evaluating what options are best for you, but does not divert from a well thought-out strategic plan. Avoid advisors who are constantly pumping the latest hot stock pick with a sense of urgency; they may not have your best interest at heart. There should be no sense of urgency when it comes to sound investing that leads to long-term growth.
  4. They invoke confidence and trust.
    You need a financial advisor you can trust to have confidence in their recommendations. If you feel nervous, fearful or stressed out after discussions with your advisor, trust your instincts and end the relationship.
  5. They are an experienced financial professional.
    All legitimate financial advisors should have significant experience in the financial services industry or some sort of industry-recognized certification. One highly regarded designation is that of Certified Financial Planner (CFP). CFP professionals must meet standards for experience and ethics, as well complete 30 hours of continuing education every year to maintain this accreditation. Other respected forms of certification include cFinancial Management Advisor (FMA), and Personal Financial Planner (PFP) designations. Whatever the case, be sure to verify your advisor’s experience and credentials. Do your due diligence; it’s your best protection to ensure you’re dealing with a reputable advisor.
  6. They take a holistic view of your finances.
    Sound financial advice is based on more than just your income level or the types of asset classes you invest in. A good financial advisor will take the time to learn about your full financial situation, investigating your banking, investment, insurance and credit needs. Only by understanding your spending habits, debt obligations, life goals and more can a financial advisor begin to develop a meaningful and accurate strategy.
  7. They have a support team.
    A good advisor should have access to a broad range of experts to meet your specific needs. A team approach will ensure that you get the professional advice you require to meet any specialized investment, wealth management, insurance or debt management objectives.
  8. They have a clear strategy.
    Just as you wouldn’t take a trip across the country without a map, you shouldn’t try to steer your financial future without a clear direction. And if life circumstances change, as they often do, your advisor should take them under consideration and help you revise your financial plan.
  9. They work with you.
    A good financial advisor will meet with you – and your significant others – regularly throughout the year. And that level of attention should continue every year of your relationship. Too many times, people meet with an advisor, develop a plan, and then simply get statements in the mail.
  10. They put your interests first.
    Professional advisors tailor your plan to meet your goals. They don’t push products on you simply to meet quota or to get the biggest commission. Check whether your advisor represents a wide range of products and service options or if they’re restricted to only proprietary solutions their company sells.

You will feel secure and comfortable knowing that your investments are in the hands of the most highly prepared people in the financial consultant businesses. As Albert Einstein said once, “the hardest thing in the world to understand is income tax”. So, leave your financial affairs to the professionals and enjoy your life with security.

Written by Ravi Chandran

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