A person who is providing financial advices to customers, clients or firms for compensation also sometimes also referred to as advisors. Financial Advisors can provide a variety of services including investment management, estate management, create financial plan and provide ideas on savings, tax planning, selling any financial product or a combination of these. However now-a-days it’s going like a one stop go business and a lot of websites are there to provide these services with ease and cost efficiently.
Fees
Mostly Financial advisors charge their compensation or fees on hourly basis for advising and in some cases it is also based upon how much assets they are managing and for how long, there is also a system of fixed fees for a period of time (say one year) called as flat fee advisor. Most common method of charging in online mode of advisory is a subscription process in which a client or customer has to buy a subscription for a pre-defined period.
Roles and importance
They can help clients and companies in managing their income and expenditure, attain their financial goals as soon possible and by providing/suggesting more ways to secure and create more wealth by reducing cost or eliminating debts.
In case of Individual, they can help them by providing with a financial portfolio of investment that will be well suited according to their risk taking capabilities and financial condition. Determining their capabilities their returns also fluctuate between low to high as with the returns getting higher, risk also increases.
In case of companies and high end investors, they are provided with a well suited plan depending upon their assets and interests. They are also provided with a neutral and true second opinion regarding perspective of corporate projects. Future of these services is going to be algorithm based programs or “robo-advisiors” which are also being used by many companies today.
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