Personal Financial Consultant

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The personal financial consultant defines the financial objectives of individuals after making detailed analysis of his financial status. The personal financial consultant also helps in formulating a comprehensive financial plan and provide suggestions to implement such plans.

Before hiring the personal financial consultant the following aspects need to be considered.The client’s interest should be the first priority of the personal financial consultant.The mode of payment to the personal financial consultant or the personal financial advisor should suit his client.

Nature of Work of the Personal Financial Consultant

The nature of work or the services provided by the personal financial advisor can be listed as under:

  • First, the personal financial consultant analyses the long and short-term goals of the clients and then they apply their knowledge of investments, tax laws and insurance to provide financial options to individuals.
  • The role of the personal financial consultant is also to provide suggestions relating to issues such as retirement planning, estate planning, funding for college and general investment options. Generally, each personal investment consultant specializes in his own field. He can be an expert in retirement planning or estate planning or risk management.

Modus Operandi

The mode of operation of the personal financial consultant takes place in the following steps:

  • After consulting with the client, the personal financial consultant gathers information regarding the client’s financial status, his short term as well as long-term goals.
  • The personal financial consultant draws up a financial plan, which highlights the lacunae and offers appropriate action plans.
  • After this the personal financial consultant selects a suitable investment plan in conformity with the client’s long and short term goals, his capacity to bear risk and his expectation with regard to return in investment.
  • The suggestions or plans made by the personal financial consultants are either written or given verbally.
  • The personal financial consultant meets their clients at least once a year and gives them updates regarding current investment plans. They want to know whether the client has undergone any major life changes and inform them about the effects of such changes.
  • Personal Financial Services Provided by the Personal Financial Consultants
  • Analysis of investment at all levels
  • Evaluating overall financial situation and planning
  • Working along personal lines of insurance, which include life, disability, medical, dental and office overhead.

Other functions of the personal financial consultant

Some personal financial consultants engage in buying or selling of personal financial products like mutual funds, insurance, etc.

The personal financial consultants also refer their clients to other advisors for the preparation of taxes, wills etc.

The most important part of business of the personal financial consultant is building their client base. If one client is satisfied with their job, then referrals would lead to client multiplication, increasing thereby the profitability of the personal financial consultant.

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