What do Financial Advisors do?


November 20 2017

There are many different types of finance professionals, from financial advisors and tax professionals to investment brokers and bankers. Few of them can have the long term, relationship-based impact that financial advisors can. If you’ve never worked with a financial advisor, you may not really know how he or she can help you. Here is a brief overview of what financial advisors do.

Help Clients Plan for Short and Long-Term Goals

Financial advisors work with your best interest in mind to help you plan for your short and long-term money goals, whether you want to stop living paycheck to paycheck or save for retirement. Unlike a banker, who works primarily in the interest of the bank, or an investment broker, who makes more money by getting you to invest, financial advisors work directly for you toward your goals. Financial advisors will help you come up with a realistic plan.

Plus, financial advisors can help you with your taxes, make investments, and manage your money. This makes a financial advisor a great resource to rely on for all financial matters.

Determine How Much You Should Save

The truth is that most Americans don’t save enough for retirement or rainy days. Many clients believe that they don’t have enough money to save or invest, so they don’t. A financial advisor will work with you and see how much money you should be saving, based on your unique circumstances and goals. They’ll even give you the tools you need to get there.

Make Recommendations

Financial advisors that are Fiduciaries serve as an independent expert to your finances. Instead of putting on the rose colored glasses of a salesperson, a they will be honest about the state of your family’s finances and let you know what you can do differently to improve them. Fiduciary’s hold themselves to higher ethical and moral standards and are required to always act in your best interest.

Evaluate Investment Risk

When it comes time to invest, a financial advisor will be able to properly evaluate your investment risk. He or she will consider the investment and your financial goals. For instance, your financial advisor may try to balance risk with your investment horizon. If you will need your money in a short period of time for a large purchase, a financial advisor will likely recommend that you choose stable investments.

Educate Clients

Financial advisors educate clients on a wide range of topics. These can include investment opportunities, money management, savings strategies, and how to understand market performance. Financial advisors also answer any financial questions that clients may have.

Financial advisors play a key role in educating and directing clients toward reaching their financial goals. If you need a financial advisor, consider Dechtman Wealth Management. Call (303) 741-9772 for an appointment to discuss your unique financial needs.