If you want to know what financial advisor or top financial advisory firms do with your money and how they decide on the profitable investments and planning course of action for you. This blog will help you listing different types of financial advisors and their job roles. A professional financial advisor will offer and suggest various financial solutions to customers based on their financial needs. The advisor must be properly trained, and mandatory to hold a license to provide exact financial advice to their clients.
There are numerous types of financial advisors or top financial advisory firms available to guide your financial planning and investments. Each financial advisor will offer a distinct set of expertise depending on their skills. The list of six types of financial advisors are below-
1. Personal Banker: These professionals mainly work at banks and various trusted financial institutions. The personal bankers are highly-trained to sell investments, like saving bonds, and GICs. They are salaried person and some are license holders to sell mutual funds. So, there is no direct cost incurred from customers against banker’s services. But the cost is included in your service fees or from your investments.
2. Customer Care Representative: This type of financial advisor is often found at the financial institutions or banks where you have an account or loan account. The customer care representative help with one-time decisions, like choosing a bank account or credit card facility. The representative will also guide you to compare mortgage or loan options and advise you during short-term or long-term investments. As this personal commonly gets a salary from the financial institution where they work, so there is no direct cost for their advice. However, these types of professionals only can suggest products sold by the financial institution under which they operate.
3. Investment Adviser: This professional will manage your investments and offers advice on various security. The investment adviser works for organizations that are registered as portfolio managers, which can be owned by banks or independent firms. They may only deal with rich customers with at least $250000 to investment, and will also charge a flat fee against their services offered. Or, these advisers may charge an annual fee based on the size of your investment.
4. Mutual Fund Representative: The mutual fund representatives are registered to buy as well as sell mutual funds on your behalf. The companies under which they work are also registered as dealers of mutual funds. These professionals are normally paid by the companies whose products they sell and make income every time they sell funds. If you decide to buy a mutual fund, the cost is added to the cost of your funds.
5. Insurance Advisor: These professionals are highly-trained and licensed to provide advice about insurance sell. Some of them are specialized in specific products, like life insurance or property insurance, and others sell a wide range of insurance products. A few of the insurance advisors are also registered to sell investments and are paid by the firms whose products they sell. They also make income every time they can sell a policy. If you decide to purchase, the cost is included in your insurance payments.
6. Financial Planner: A financial planner will guide you to create a financial plan to aid you to reach your goal. These professionals may advise you on risk management, financial planning, tax planning, investment planning, estate planning, and retirement planning as well. They are paid in different ways, make sure to ask your hired planner how they are paid.
Irrespective of which types of financial advisors or top financial advisory firms you use, it is important to consider if they are trained, licensed, and what you’re paying for their efficient services.
