Personal financial advisors are professionals who assist individuals in arranging their finances to best advantage. In some cases, the advisor is engaged for a short period of time as a means of helping someone create a basic financial plan to follow. At other times, the advisor is retained as a consultant over the long term and may provided clients with counsel on all sorts of money management and investment issues.
Many people turn to a personal financial advisor when they have lost control of their finances. In this capacity, the advisor can evaluate the current fiscal status of the client, including examining their spending habits. Once the advisor has a solid understanding of the current financial condition of the client, he or she can begin working with the client to develop and implement a practical budget that will make it possible to honor all monthly obligations. At the same time, the personal financial advisor helps the client learn how to minimize unnecessary spending and begin to regain some degree of financial security.
The personal financial advisor also works with clients over the long term, especially when the client is building an investment portfolio that may include stocks, bonds, properties and other types of holdings. A competent advisor can provide effective counsel regarding how to diversify the holdings to generate the best financial gain as well as how to make the best use of current tax laws. The advisor can also provide constructive suggestions on how to choose the right investments in order to achieve the financial goals adopted by the client.
Choosing a personal financial advisor career requires acquiring a strong background in the world of finance. Often, the advisor education will include the acquisition of advanced degrees dealing with finance and accounting, as well as practical experience acquired at various types of financial institutions. In addition, a personal financial advisor must have excellent communication skills, both in terms of articulating information to clients in a manner they readily grasp and in understanding the information clients are providing.
When it comes to the matter of a personal financial advisor salary, some advisors are placed on a retainer and charge by the hour for their services as needed. In some cases, advisors may work out arrangements with a client to provide unlimited financial counsel for a flat fee per month. Advisors who are part of a practice or firm may receive a salary as well as a commission on the fees charged to clients they actively serve on a monthly basis.