Now when it comes to finances, we all seek help at some point in time in our lives. However, we do not look for an expert’s help. We either turn to our parents or peer groups to discuss money matters. In some cases, the financial advisor or professional is the only person you can trust.

These financial experts help you with your finances and projects that will help you decide how much to save and invest wisely. These then, help you achieve short-term and long-term goals and also prepare you ahead of retirement. The financial advisor also helps you make decisions with your money that will nurture you towards building wealth for the future and reach your financial goals as efficiently as possible.

When you are just starting your career, saving money can be tedious and in most cases, you will find yourself struggling with money. With a financial advisor, you will be able to manage money and learn about finances too. The benefits of an advisor are many and you need to know what they do and how they do it. Not just this, a financial advisor can also help in investing. They add a lot of useful advice and information to your plans.

They help organize and make you understand your goals and suggest relevant methods to do more with a limited budget. Even if you want to do small business, the best chances of financial success are to turn into a financial advisor. If you are a beginner with investments, they will make you understand and share appropriate investment plans.



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Who is an advisor: Financial Partner, Planner, and its many roles

An advisor is someone who offers assistance with – some situations, cases, and struggles related to finance. Complete guidance with how to manage your finances is what a financial advisor is all about. As in today’s nature, a financial advisor can be seen in many different roles – and each of them to its benefit is very helpful. They are people known as investment managers, financial consultants, personal chartered accountants, or financial planners.

A planner or a partner, financial advisors are professionals who help you organize and deal with your finances wisely. They help you make your savings and investment plan stronger and structured, so you are well aware about budgeting and well prepared for retirement ahead of time. The many roles of a financial advisor literally mean the same thing, however, each of them plays a different role alike. It really depends on the level of education, training, and experience the professional has.

Indeed, makes much of a difference in the quality of advice you will seek. While it is true that one can make their own planning, a few do lookout for assistance. Hence, in these scenarios, an experienced advisor is the only way out to improve your finance structure and decisions you make. If you are considering hiring a financial advisor, it is important that you have some expectations and be able to tell the difference between someone who genuinely wants to financially help you and a casual salesperson who wouldn’t take much interest. Getting hold of the right financial professional is very crucial when planning a financial budget for either yourself or the family.

For example, let’s assume you want to retire in the next 20 or 25 years, and you are unable to prepare a plan that makes you understand how much money you require to accomplish your goals. In cases where you need professional help, you may need a skilled expert in the field who will guide you thoroughly. In order to make your plans a reality, a good financial advisor comes in. 

What does a financial advisor do? 

In simple terms, they find easy ways to explain to you anything and everything related to finances – personal finance, management, budgeting, structures and more. They discuss topics, including how much money you can save, types of accounts you can hold, types of investments and other prospects of building your wealth. They also guide you and your family on which insurance plans – short-term, long-term, etc are best suited and also brief you on tax planning.

Since it is advised to look for an expert with high-quality knowledge, the financial advisor is also an educator. An advisor not only shares theoretical knowledge about finances but also gets you involved in meeting the future goals, step-by-step.

The session which involves a lot about finances is the education process of making you aware of the detailed technicalities in finance. In the beginning, the financial advisor will take you through topics such as budgeting, savings, types of accounts and how you can use the 50/30/20 rule of saving money. As you advance in your understanding and knowledge, the advisor will move ahead with making you understand complex topics such as investments, types of investments, the stock market, bonds, mutual funds, and tax matters.

The entire process of financial advisory is making you understand your financial health and stability. Together, you and the financial advisor properly plan for your future understanding where you stand today. Before you begin this process, the financial advisor will assist your complete financial history with a detailed questionnaire. Your answers will then help the advisor to understand your situation and make the most of important information before advising you / your family on anything.

In today’s fast-paced era, where people and even millennials are busy with their daily lives, many of them turn to financial advisors to handle their finances. Advisors do help in planning for all types of people and they are usually seen to be working with individuals, business owners, or even parents wanting to plan for their children, etc. They closely look at your financial goals and plans and adhere to it from there, guiding you to the best methods to achieve those goals.

How much does a financial advisor cost you?

In India, a financial advisor can help you manage your spending, investments, savings with the help of their professional education and knowledge. To provide advice in your best interest, they oppose to simple ideas and plans suitable to your financial needs. And this could definitely cost you if you want to create a comprehensive budget or a solid saving strategy. Usually, a good financial advisor or professional can be worth the cost if you are able to save some extra money, cut your expenses as per their suggested plans that work better for the future. If they can make you feel secure about your finances, this can be priceless.

They do come with high fees but it depends on the type of advisor you choose. Some advisors charge a flat fee to create a financial plan, or an hourly, monthly or annual rate. There are advisors who operate in the best of the client’s interest and are fee-only which means this is their only compensation and they do not earn a commission from the certain investments or financial products you have invested in. However, it’s important for you to know the different types of fee structure. You will find that their fee structure varies and they charge fees in one of the following ways:

  • Rates charged on an hourly basis
  • A flat fee as per the specific project
  • A quarterly or annual retainer fee
  • A fee charged as a percentage of assets that they will manage on your behalf
  • If you invest or buy financial products through them, they will charge commissions earned from it. 
  • A combination of both, fees and commissions

Remember to always ask your financial expert, how they would like to be compensated and the detailed explanation/breakdown of it. If they are a registered investment advisor, they should be able to provide you with a disclosure document covering details on all fees and any potential conflicts of interest.

Is it worth getting a financial advisor? Is it Helpful?

Besides improving your financial status, stability and overall getting your finances in shape, a good advisor will also help with your investment performance. Guidance throughout your life that will always help you with planning, investing strategies, tax issues, dealing with retirement plans, short-term and long-term goals, etc can be beneficial and valuable, especially when you are planning major events in your life, such as buying a house, weddings, having a baby, retiring, etc.

With changing events and jobs, you need to consider how to deal with your finances and advisors are the best of us to evaluate the suitable and comfortable plan for you. It’s true that some of you may not require a financial advisor, but you may if…

  • If you have not been saving for retirement or investing effectively
  • If you have not devised a sound financial plan for short-term and long-term goals
  • If you need to understand the right amount of insurance required to protect your home, car, life, income etc.
  • If you have debts to be paid off and need to understand how to control them
  • If you do not have an estate plan to minimise taxes and need to learn about tax issues and beneficiaries.



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Shivam Abrol

Shivam is a passionate content writer with Masters in journalism. A mutiple-award-winning writer, he brings over a decade of experience as a BFSI writer. In fact, he himself is known in his circle for sound financial advice. A writer by day and a reader by night, Shivam enjoys researching and writing on various financial topics, including credit, stock market, crypto, taxes etc. When he is not spending his time penning down an informative article or opinion, he can be found playing with his kids or collecting stamps.

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