Financial Advising Essay

Submitted By carwun
Words: 1242
Pages: 5
Open Document
The job of a Financial Advisor is multi-faceted. The ultimate goal is preserving a individuals net worth through a series of actions and money management strategies which may or may not include budgeting, tax planning, insurance, retirement and estate planning, and investment advice and guidance. Each clients needs are individual and unique so a financial plan could include any or all of those components or maybe something completely different customized to that client.
It is up to the financial advisor to identify those needs in a clients financial situation, and to pass the information onto the client in a way they can best understand. This takes a large amount of communication skills, as well as compassion and understanding of many different peoples financial situations. Financial advising does not only consist of allocating large amounts of money for wealthy individuals or families, but understanding people’s situations and making the appropriate recommendations.
In that sense I think that good communication skills, as well as compassion and empathy are the most important characteristics a financial advisor can have to be successful in this industry. Although many people of high net worth seek out financial advisors to manage their wealth, just as many people facing bankruptcy or financial hardships will seek out the aid of a financial advisor because they are in a situation they cannot manage without help. In those cases, it is vital to be able to prioritize and calculate what is the most tax effective course of action for this individual’s situation. A financial advisor must be able to work under pressure and make those decisions that could make all the difference in a bad situation, whether it is advising them to pay off their loans first rather than saving, or if they need to purchase life insurance to protect their assets, even though they are having financial troubles, these are decisions that they need to make and be able to clearly pass this information onto their clients so that they can understand.
Trust is a huge issue with financial advisors; the skill is to get someone to trust you to open up about their financial situations. May people do not like sharing that information and are uncomfortable talking about money. Many time people will come to an advisor seeking advice on a particular subject and do not disclose their whole financial situation. For example, someone might come in seeking help paying off their loans or student debt, but will omit that they are currently being foreclosed on, or filing for bankruptcy because they do not think these situations are related or do not want to share personal or embarrassing information. As an advisor you need to know the scope of the situation before giving advice, and in order to do that you need to have the skills to convince the client to trust you and disclose their information to you.
Although soft skills and personality are extremely important when you are dealing face to face with clients everyday, just as important, if not more are the actual analytical skills that are behind the scenes. You need to be back up your likability with actual results. With so many personal financial planning apps and websites out there, if you are charging for a service, you need to make sure you do actually have the highest possible returns and tax advantages you can offer. You should not simply take a persons portfolio and put it into index funds or the target retirement funds, you need t make sure you are educated enough and able to build sufficient portfolios for each of your clients to actually satisfy their needs in a proactive way. Most people don’t have a full grasp on their monetary issues, from my experience people think that they are prepared based on the 401k and life insurance they receive from work. In fact statistics show that about 40% of Americans have no life insurance at all. Statistics show that the higher your income, education and age the more likely
Show More

Related Documents: Financial Advising Essay

Communication: Technical Support and Paty Padilla Essay

for Module 5. Question: Prof. Jones, I am still not familiar with the school system, could you help me locate the assignment drop box for module 5 please. Exercise 2: Questions for the Academic Advising When you encounter a problem with your course schedule, you will need to contact Academic Advising. Write out a question that addresses this problem: You are thinking about changing your major, so you want to ask how changing your major will affect your college credits and graduation date.…

Words 340 - Pages 2

Essay on Banking: Bank and Investment Banks

System, the centerpiece of American banking. Commercial Banks make up the largest banking group in the U.S. At one time, commercial banks could easily b distinguished from other financial instituition by the fact that only they could offer checking accounts. However, changes in the banking laws now allow other financial instituitions to offer checking accounts as well. Commercial banks can be established and operated only after being granted a charter by either the state or federal government. The…

Words 845 - Pages 4

Essay on Career in transaction

today affects how competitive they’ll be in the future. We call it their Capital Agenda . Our transaction professionals help clients make better and more informed decisions about managing capital and transactions in a changing world. That means advising businesses on how they preserve, optimize, raise and invest their capital to help them achieve their strategic objectives. As a result we work as advisors to the world’s largest organizations, fastest-growing companies, and private equity firms…

Words 657 - Pages 3

The Accountant As Strategic Business Advisor

Contemporary: Proactive; forecast future needs, influence how org attends them Eg 1.4: The 1st strategic decision: Business structure Types of adv that prof. acc provide 1.) Financial mgt 2.) Productivity & Operations 3.) Risk & Org Structures 4.) People mgt 5.) Sustainability 6.) Communications & IT Strategic Services must have 1.) Soft Skills 2.) Accounting Skills…

Words 713 - Pages 3

Ebenezer's Financial Case

seeing loopholes in Ebenezer’s firm’s financial statement. It is also about whether to give priority to personal relations over professional conduct. The scenario poses dilemma to Tim among two choices. Primarily, he can go ahead and sanction Ebenezer’s loan by doubling the loan amount. By doing this he would be faithful to his friend and also make sales for the bank. On the other side, he is putting bank’s funds at risk considering the fact that Ebenezer’s financial situation does not sound eligible…

Words 317 - Pages 2

Disadvantages Of Documentary Credit

by which an exporter in one country can obtain payment from an importer in another country. 4.2 A clean collection: a collection of financial documents not accompanied by commercial…

Words 1244 - Pages 5

Orthopedic Surgeon

an Orthopaedic Surgeon and a Chief Financial Officer these advantages and disadvantages show to be both similar and different within the two jobs. Although these two occupations pose to be similar in the amount of responsibility connected to the position, they are significantly different in the areas of education and training required and the actual on the job tasks that the employee will be expected to complete. Both an Orthopaedic Surgeon and a Chief Financial Officer have a large amount of responsibility…

Words 639 - Pages 3

Job Analysis Project Essay

faculty academic advisors. Evaluate and advise new students and schedule courses for upcoming quarter. Problem-solve issues related to student advising. This may include conflicting course schedules, ensuring pre-requisites have been met, and evaluating transfer credits. Prepare student advising folders for faculty. Prepare aggregate hours forms for Financial Aid. Prepare compliance reports for NCAA student athletes. Post…

Words 1048 - Pages 5

A guide to parents who have children approaching the age of 18 Essay

child could be about: Financial stability: After your child starts working, it is very necessary to advise them about financial stability. You, as a parent, need to make your child realise about the importance of saving money for the future rather than wasting everything in unproductive things. Some of the tips you can offer your child regarding financial stability could be about being careful while using credit cards, keeping an eye on savings account balance, setting financial goals and working towards…

Words 559 - Pages 3

SYLLABUS SE101 Essay

Assignment Workbook ( posted on Moodle) Print out and bring to every class! Supplies: (not just for this class but for all your classes) A pack of 3 x 5 Cards – we will use these for class exercises. Bring to every class. 2 Folders w/ 2 pockets – for advising and career planning A planner – It must have a monthly view and a weekly or daily view. You will need this for class assignments. You must bring this to every class meeting. Notebooks – one for each of you classes, each should have at least one…

Words 1812 - Pages 8