How to Choosing the Right Financial Advisor

Choosing a financial advisor consultant or financial consultant does require a little foresight. The reason is that you will be looking for someone to take care of problems related to your personal and company finances. It’s the same as buying clothes at the market, you first have to search intensely so that you get the clothes you want.

Financial Advisor

Definition of Financial Advisor

A financial advisor is someone who will provide advice or advice to their clients so that they are able to plan their company’s finances or personal finances carefully.

Usually, they will provide various forms of services, such as investment management, financial matters, tax planning, etc. They will carry out their duties independently and some will work for a financial company.

Some of them also work in offices or go to many places to meet their clients. A financial advisor also does not rule out giving seminars on financial planning in several places and teaching online classes.

But apart from all that, they must have a professional license to run their business with clients. Because, not just anyone can become a financial advisor.

In Indonesia, there are actually many professional financial advisors that you can contact if you need their services. If you have heard of several terms such as insurance agent, tax preparer, investment manager, or stock broker, they are all included in financial advisors.

Financial Advisor Duties

The task of a financial advisor in general is to review a person’s financial needs and assist clients in overcoming various financial problems.

They will provide assistance to their clients to be able to plan their finances in the short term or long term. They will also usually provide several recommendations in the form of an investment instrument that is in accordance with the main objectives of their clients.

For example, if you want to invest to be able to finance retirement and family education, they will certainly provide investment instruments that suit your goals.

In addition, they also often provide other suggestions such as in terms of insurance or taxation, depending on the problems experienced by their clients.

But in general, some of the things that are done by them are as follows:

  •      Meet clients personally to help with their financial problems
  •      Provide an explanation regarding the types of financial services
  •      Provide education to clients and provide advice regarding investment choices and their risks
  •      Provide investment instrument recommendations according to clients
  •      Conduct investment opportunity research
  •      Provide assistance to clients regarding certain plans so that they can achieve their goals
  •      Monitoring the progress of the client’s investment instrument account.

Should You Use Financial Advisor Services?

If you experience a doubt in solving financial problems, it is advisable to make considerations in hiring the services of a financial advisor.

You can make them a good advisor in helping solve the solution of any financial problems you experience. Because they have unexpected judgments, this will make you confident in taking a step or policy.

Apart from that, they will also assist you in solving quite complex financial problems, such as debt, house construction, taxes, and so on.

So, will the money used to hire their services be worth the results you will get? Of course comparable, why? Because they will provide careful financial planning for you.

So, with financial advisors, the possibility of your financial problems can be handled properly, even their advice can be valid in the long term.

Tips for Choosing the Right Financial Advisor

If you have decided to use the services of a financial advisor, you need to consider several things. The following is a list of tips for choosing a financial advisor.

Search As Needed

You need to know, that there are already a lot of financial advisors out there who provide financial services. Therefore, it is highly recommended that you look for an advisor that suits your needs. Also, be sure to review the prices they offer. Because of course you have to adjust to the budget capabilities that you have.

Basically they are able to help you manage your finances. Good help in managing personal finances and company finances.

If you have used the services of a financial planner, then the next thing you have to do is, work on the suggestions, input, and recommendations given with confidence.

See the Track Record

You should make sure to see their full track record of experience first before deciding. You have to research carefully whether they are someone with adequate competence in dealing with the financial problems that you have or not. The point is adjusted to the needs of the financial assistance you need.

Some of the ways you can do this are by taking advantage of social media. Including all the information about them on the internet to track their work experience. That way, you will get information regarding their background and track record.

Find Out the Tariff or Fee Applied

Try to do a comparative study of the prospective financial planner you want to use. After that, ask about the rates or fees and benefits they offer before starting the consultation.

Later, also make sure whether they charge a commission for sales of business or returns on consulted investments. This is important so that you are not surprised by the unexpected expenses that must come out for using their services.

Avoid Advisors with Conflicts of Interest

After ensuring a good track record of advisors and searching according to needs, there is one point that must be kept in mind beforehand. You must avoid financial advisors who have conflicts of interest.

Later, you have to ask what background he has, whether he works independently or under a certain company. Of course, you should avoid financial advisors who encourage you to buy products from their companies at random, not through advice or other objective advice.

Check the Certifications You Have

Next, you need to become a financial advisor that you will choose with a special certification that is trusted or credible. You should avoid a financial advisor who is not certified or certified.

It is feared that later it will provide financial input that does not guarantee it can help your financial problems. Generally, a CFP (certified financial planner) degree is usually considered the best. Those who hold it must have experience, training, and be bound by a certain code of ethics.

Apart from that, there are various other certificate schemes such as CFA, CIMA, CPA, and others. Most importantly, they have proven ability to provide financial advice in a professional and effective manner.

Customize with Service Scheme Preferences

Financial advisors have various service schemes that can be adjusted according to how deep their knowledge is. Broadly speaking, there are three types of services offered, namely:

Hourly consultations, perfect for specific issues like buying a house, setting up an education fund, and more.

A thorough consultation, for those of you who want to evaluate your financial situation and seek advice on next steps.

     Asset management, helping you manage your finances and assets over the long term.

A financial advisor will help you solve any financial problems you are experiencing. They have unexpected judgments, so they will make you confident in taking a step or policy.

So, even if you consult a financial advisor, make sure you don’t entrust the management of your assets to a financial planner, whether in the form of cash, stocks, savings, bonds, property