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What is the Primary Role of a Financial Adviser?

A professional financial adviser gets in touch with you (in person or via call) to get to know you, and your overall financial position. They help you set defined goals and planned objectives, as a lack of objectivity is one of the main reason for failure in investments.  Each case is treated differently and individually, for some people, the main goal is to increase their overall income, for others, to legally protect their family’s wealth, for example, through insurance. 


A personal financial advisor will examine your situation and discuss with you how you could manage your finances to achieve your financial goals faster. An opinion of an experienced professional executor is always precious in any area, especially when it comes to managing personal finances and the future of your family. 


One of the main roles of a professional financial adviser is to recognise goals, conditions and future perspectives of a client. By doing so, an adviser will determine the amount of risk the client can afford to take in investing. The most suitable investment opportunities are then chosen according to the client’s financial goals and current financial position. 


Finally, your financial adviser will continuously update you on your portfolio by contacting you via phone calls or in person. This regular procedure occurs once your investment plan is in place. The advisor may also set up regular meetings or phone calls where discussions about future steps and current overall financial position take place. 


What exactly does a financial adviser do? 

Manage your Financial Plan: 

This plan usually includes strategies and instruments which should result in a general wealth expansion of an individual or a family. Advisers tend to plan in the long term; however, it depends on conditions, goals of an individual or a family and whether there is an ability to take higher risks. An individual who can make a higher level of risk will invest more in stocks and corporate bonds, while those who are less comfortable with risk are likely to have a higher concentration of government bonds and money market holdings 


Pension Planning:

Best for those people who want to take care of their financial state after they retire. Planning the most advantageous pension programs and other investment options for obtaining passive income with minimal risk. Starting to think about the retirement early might be a key for living a happy life. This can be done by pension saving/investing so that a client’s overall pension pot is increased and can be used after the client is retired. The adviser can then show you how much you can take from your pension pot without depleting it too early. 


Opportunities for Investment:

A personal financial adviser can assist in the formation of a deposit portfolio and select the most profitable investments, based on the source data and financial goals of a client. A financial adviser would also look at taxation behind investments. Sometimes when all the possible tax implications are not considered before investing, the outcome is poor. In other words, if you are not careful, the investment that looked brilliant may result in, for example, an additional tax charge which can decrease your income. Financial advisers help to identify such investments so they can be avoided. 


Managing Protection Insurance:

A financial advisor assists you in selecting the right coverage for you and your family. This is perfect for those who want to feel secure about their future, taking into account the worst-case scenarios. If you want to ensure that in case something happens to you or one of your family members, your family will not financially collapse and will not be left out. A specialised financial adviser can give you the best options for you depending on various factors, including a person’s age, job and the financial circumstances. 


Managing your Mortgage:

A financial adviser can identify whether it is better to get a loan or increase savings for investing. It usually depends on the amount of risk the client can take. Personal advisors also provide clients with the most affordable options for borrowing money so that the client chooses the most favourable bank with the cheapest borrowing conditions. If you already have a mortgage, a financial adviser will be looking for banks that can offer a better interest rate and conditions of your mortgage. Financial advisers will help you find best re-mortgage deals with other banks, which may decrease your fixed costs. 


Inheritance Planning:

Professional financial advisors use many ways for optimising the transition and obtainment of inheritance. If you need to manage your heritage, a financial adviser will provide you with options to decrease the inheritance tax. It’s best to start as early as you can in order to take full advantage of the options available as inheritance tax takes some years to mitigate fully. 


Business Management:

Assistance in optimising taxation, advice on developing business – such services of a financial adviser may be of interest to entrepreneurs. A piece of advice from an experienced professional could help a business to lower their costs and therefore maximise profits. Financial advisers may have different background and education. Some of them would be more suitable than others in advising on business management. 

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