Financial Advisor Job Description

Roles and Responsibilities of a Financial Advisor

A financial advisor is an individual or an entity who is entrusted with the task of providing advise or counsel in order to aid the process of investment and asset management. Previously, financial advisors only concerned themselves with investments. However, their roles have evolved with time and today, a financial advisor also deals with insurance products and undertakes retirement planning. Advising clients on how to invest in real estate, budgeting their finances and preparing comprehensive plans for retirement have also become a part of their job. A financial advisor may also be called upon by a client, to prepare a detailed plan for funding the educational requirements of the client's ward. A financial advisor may also be employed by mutual funds to pool together the shareholders' wealth and invest in a group of assets, in accordance with the stated objectives.

Financial advisors have the responsibility of assessing the client's circumstances. The client's risk and return objectives need to be determined. The risk, that the client is willing to assume, should be in accordance with the desired level of return. The need for liquidity and the time horizon of the client should also be determined. A client, who has the need for liquidity, will obviously not be willing to invest a great deal of money in investments that will not provide quick return in the short term. The investor's time horizon is also very important since an investor with a short term horizon will not prefer locking up cash in investments that are expected to mature in the long run. Investors may have more than one time horizon. For instance, an individual may require cash for buying a home and sponsoring children's education. Other than these expenses, the investor may not have any other significant financial commitments until retirement. Hence, a financial advisor should plan keeping in mind the three time horizons when the need for liquidity will take precedence over the desire for investment. As mentioned earlier, the risk and return should be directly proportional. An investment advisor should ensure that the client's willingness and the ability to assume risks complement each other. In case of any imbalance, the advisor should clearly illustrate the risks and the benefits of assuming the given level of risk. In other words, the advisor should devise highly individualized strategies aimed at wealth creation and capital preservation.

The above financial advisor job description bears evidence to the fact that an advisor has enormous responsibilities towards delivering the best for his/her clients. A good financial advisor should have the following qualities and qualifications:

Finding the Right Financial Advisor

It would be highly desirable for the financial advisor to have one of the following certifications: Certified Financial Planner (CFP), Chartered Financial Analyst (CFA) or Chartered Financial Consultant (ChFC). A person, who wants to pursue a career in financial planning, as a financial advisor, should try and obtain one of the aforementioned designations. A financial advisor with a track record of 3 to 5 years, in addition to having cleared one of the following exams: Series 6, 7 and 63, may also be qualified to advise one regarding investments. The financial advisor should also be able to communicate well with clients and co-workers. Personal financial advisor jobs are meant for people with the aforementioned qualifications and qualities.

Career prospects for financial advisors is expected to receive a boost once the economy recovers. The Investment Advisors Act of 1940, requires an advisor to act in the best interest of the investor since a financial advisor occupies a position of trust and confidence. Investment advisors need to be registered in the state where they are residing or with the Securities and Exchange Commission (SEC). The above financial advisor job description exemplifies the importance of seeking a good financial advisor who can guide us on our path to financial independence.