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Monday Oct 03, 2022

What Does a Financial Advisor Do?

When it comes to money, many folks want to play it close to the vest. They prefer to “Do it their way”, and manage their personal finances in relative isolation from others. For a variety of reasons, this may not be the best path to take. Among the most important reasons is that many folks lack the knowledge and discipline to make good financial decisions.

This is where a competent and trusted financial advisor can play a very important role. An experienced, knowledgeable, and trustworthy financial advisor will be able to objectively assist you through the maze of markets and investments, and keep your financial ship sailing in calm waters. If you are seeking wealth management New York NY, then, finding and partnering with a good financial advisor can be quite beneficial for your overall financial health.

Beware of Financial Pretenders

Unfortunately, sometimes people pose as competent financial planners but really aren’t. Financial advisor scams are nothing new. Misrepresentation of credentials is a typical way in which unscrupulous people scam the unsuspecting investing public. Additionally, some pretenders can be recognized when they offer the promise that they can somehow make inordinately outsized returns for you.

Indeed, in the middle of the last decade, the Certified Financial Planner Board of Standards produced an advertisement to highlight the problem of unscrupulous financial pretenders that lurk about. In this ad, a dreadlocked disk-jockey masquerades as a clean-shaven financial planner. Despite the fact that he has absolutely no training in investing or finance, he easily convinces almost all of his prospective clients to trust him with their money.

The point is that there are financial sharks in the investment waters. It pays to check out in detail any financial advisor with whom you are thinking of partnering.

The Core Job of a Financial Advisor

So, what does a competent financial advisor do? Their primary responsibility is to assist you in making sound financial decisions. They work with you as a partner in understanding your financial goals and personal situation. They help you craft a plan that takes these concerns into account and can execute the plan on your behalf if you wish. 

Let’s say you are interested in building wealth for the long term. A good financial advisor will do much more than steer you into a few mutual funds. Indeed, in addition to developing a sound, long-term investment plan, they assist in a myriad of other allied ways, such as in tax and estate planning, debt management, health and long-term care concerns, inheritance windfalls, and retirement issues, to name a few.

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