Some financial analysts, called ratings analysts, evaluate the ability of
companies or governments that issue
bonds to repay their debts. On the basis of
their evaluation, a management team assigns an
investment rating to a companies or
governments bonds. Other financial analysts perform budget, cost,
and credit analysis as part of their responsibilities.
Personal
financial
advisors, also called financial planners or financial
consultants, use their knowledge of investments, tax laws, and
insurance to recommend financial options to individuals in
accordance with the individuals short-term and long-term goals. Some
of the issues that planners address are retirement and estate
planning, funding for college, and general investment options. While
most planners offer advice on a wide range of topics, some
specialize in areas such as retirement and
estate planning or
risk management. An advisors
work begins with a consultation with the client, from whom the
advisor obtains information on the clients finances and financial
goals. The advisor then develops a comprehensive financial plan that
identifies problem areas, makes recommendations for improvement, and
selects appropriate investments compatible with the clients goals,
attitude toward risk, and expectation or need for a return on the
investment. Sometimes this plan is written, but more often it is in
the form of verbal advice. Financial advisors usually meet with
established clients at least once a year to update them on potential
investments and to determine whether the clients have been through
any life changes such as marriage, disability, or retirement that
might affect their financial goals. Financial advisors also answer
questions from clients regarding changes in benefit plans or the
consequences of a change in their jobs or careers. A large part of
the success of financial planners depends on their ability to
educate their clients about risks and various possible scenarios so
that the clients don't harbor unrealistic expectations.
Some advisors buy and sell financial products, such as mutual funds
or insurance, or refer clients to other companies for products and
services for example, the preparation of taxes or wills. A number of
advisors take on the responsibility of managing the clients
investments for them.
Source: Department of Labor (
www.dol.gov)
Even the best wealth management and financial plans are incomplete if they do
not account for long term tax issues, be sure to review the
tax efficiency of your
plan.
You may benefit from the services of a
wealth management
advisor.
