Understanding the Need of Financial Adviser

There is a time in our lives when we decide to make an investment: a new car, a house or even a college degree. How do we know we are getting a good deal and who can guide us throughout the process? I have decided that I want to become a financial adviser, but not everyone knows exactly what that title means. Barry Glassman, a contributor for Forbes magazine, describes on his article what does a financial advisor do? how needing a financial adviser is pretty much as requiring a mechanic at some point in our lives. Nobody wants their car to break down and having to deal with the hassle of figuring out what is wrong with the vehicle. Instead, you place your trust on someone who is knowledgeable in the matter to prevent or fix the issue, so we can keep moving on with our lives.

Understanding the profession

I was doing some money transactions at my local bank, and my personal banker told me that financial institutions have realized that the phrase "financial adviser" sounds a little scary, so they have come out with terms to use instead, such as “savings specialist” or “wealth manager”. Glassman explains in his article that regardless of their title, the main objective is to achieve your economic needs. When I become a financial representative, I know I have to gain my customers' trust, build a solid relationship and coach them through different economic decisions, as everyone has unique expectations. A good financial adviser must be not only well-informed on different subjects such as investments, savings, and banking, but also should guide you in understanding what exactly is going to happen with your assets in the future. 

Looking for favorable conditions

Financial advisers are always on the look out to make the most out of their clients' investments while also looking for opportunities to save them money. Nobody likes to see stock losing its value, and making bad decisions under pressure that could make the situation even worse. An adviser provides management and can help you comprehend the projection of the investment to plan out the next move; ultimately it is our decision what is going to happen with our assets. Glassman reminds us that a financial adviser can assist us in looking for good investments, seek for favorable circumstances in the market that we might have missed and releasing some stress. Figure 1.0 is an example on what a Merrill Lynch financial adviser may show you to understand how to generate liquidity from your assets.

                             Figure 1.0 - Generating liquidity from assets.

Source: https://www.ml.com/articles/generating-liquidity-for-tax-payments.html

What to ask your financial adviser

Let's never assume anything. A good point Glassman brings is that most individuals are smart enough to manage their own assets, but an adviser is a professional who can keep us away from errors. The first question should always be: how can you generate me more money? We must understand every step, as it is our assets we are talking about. Another important matter I do every year is inquiring about my taxes, as a skilled financial person could potentially save you some money. Finally, request the adviser what other services he could provide you. Maybe you have some bonds or trust funds and don't understand how to deal with them. Remember, there are no senseless questions when it comes to your money. 



Resources:

Glassman, Barry. "What Does A Financial Advisor Do?" Forbes, Forbes Magazine, 8              Feb. 2017, www.forbes.com/sites/advisor/2017/02/08/what-does-a-finacial-                    advisor-do

[Untitled image for generating liquidity from Merrill Lynch] (2017). Retrieved                         Novemeber 12, 2017,  from https://www.ml.com/articles/generating-liquidity-for-           tax-payments.html