What is a financial advisor?

In Chile, unlike what happens in other countries such as Spain or the United States, the concept of the financial advisor is not very popular.

The term financial advisor is used interchangeably to refer to insurance brokers, pension advisors and commercial executives of financial institutions.

In this article, we will explain what the role of a financial advisor is, in what circumstances it is advisable to hire their services, and what are the characteristics of a good financial advisor.

What is a Financial Advisor?

A financial advisor is a professional who helps clients make better financial decisions. The advisor performs an analysis of the client’s financial situation and proposes alternatives to improve their current condition.

A financial advisor is a professional who helps clients make better financial decisions.

Some financial advisors focus on a particular aspect of a client’s finances. Such as advisors who specialize in investment or those who specialize in tax issues.

Other advisors carry out a complete analysis of the client’s financial situation. And propose a comprehensive plan to improve that situation. This type of advisor generally relies on other professionals to deliver a comprehensive vision.

How to choose a financial advisor?

In the article, 7 Questions for Choosing a Financial Advisor. We discuss several questions that can help identify a good financial advisor.

The most important characteristics that a financial advisor should have are:

• Verifiable experience : it is essential to validate the professional background of the financial advisor, and of his team, as well as to obtain references from clients that can verify the experience of the advisor.
• Follow up on their recommendations : A good financial advisor should be able to follow up on the recommendations that they give to their clients, and be able to demonstrate the benefits that the client has obtained by following their recommendations.
• Independence: if the financial advisor works for a financial institution (bank, stockbroker, insurance broker), it is most likely that they have monetary incentives to sell any product of the company for which they work, which limits their ability to offer the best alternative on the market.

Do I need a financial advisor?

Given that the relationship with money is constant over time. And due to how complex some financial decisions can be. Being able to count on a financial advisor and consult him. At any time can save us good sums of money or can help us to be calmer about our heritage.

There are some situations where the need to have the help of a financial advisor becomes more relevant:

• People who start their working life : a financial advisor can help plan the future decisions that the professional will face, such as renting or buying a home? What is the best savings alternative?
• People with high net worth who need specialized management : a financial advisor can improve the investment portfolio to find the optimal combination, which allows maximizing return while minimizing risk.
• People who need to organize themselves regarding their indebtedness : in this case, a financial advisor can evaluate alternatives to reduce the client’s financial burden.
• People who want to optimize the return on their investments : the financial advisor can perform portfolio optimization to find the right mix of assets for the client’s risk profile.
• People who want to properly plan their retirement : a financial advisor can help estimate the future pension and evaluate alternatives that allow it to be increased.
• People who want to acquire some good through credit : a financial advisor can evaluate the most convenient credit and propose alternatives to optimize interest payments.
• People who want to start their own business : A financial advisor can guide the creation of a business plan and assess the financial viability of the business, in addition to some basic tax planning tips.

Where to hire a financial advisor?

If you want to improve your finances, reduce your debts. Increase your assets, maximize the return on your savings, invest in properties. And invest in financial instruments such as stocks, mutual funds, and ETFs. Contact one of our Financial Advisors who can help you create a plan to reach your goals. Remember, the evaluation meeting is free of charge.

What do I have to study to be a professional Financial Advisor?

Despite the fact that, according to the CONSAR, only the completed high school is needed. Several experts in the field insist that a training oriented to customer service is ideal to be a professional Financial Advisor. So instead of telling you to study a degree in Economics, Finance, Administration or Business Management, we will give you some basic guidelines so that you decide to dedicate yourself to the fluctuation of money.

Remember that the Financial Advisor is not an ordinary salesperson but a professional who knows about:

• Market analysis.
• Accounting.
• Credits.
• Interest and return on investments.
• Afores.
• Savings accounts.
• Credit cards.

In addition to that he is also someone who has a great ability with words, presence with people. High tolerance for frustration, as well as being extremely organized and focused on different types of goals. Therefore, knowledge of assertive communication. Psychology and even oratory can also be useful when it comes to becoming a professional financial advisor.