Financial management is the activity involved in determining how an organization would be able to achieve its overall organizational goals. It entails activities such as assessing the environment surrounding the business, confirming the visions and objectives of the business, identifying the types of resources needed, their quantity, how much they cost and thereafter come up with a budget together with the risks associated with it. They are those people who have acquired skills through training to analyze their client’s status and set up programs to enable them meet their goals especially in financial matters. Financial advisors perform main roles on finding a way a corporation or an individual can undertake its activities in order to meet their goals.
Financial planners perform the following tasks in an organization for goal achievement. They keep a close watch on their client’s finances and work together with them as one in their financial journey. They offer advises necessary for helping their customers identify any problem made in their investment and come up with corrective measures as soon as possible to ensure the investment thrives successfully. They also play a role of financial instructor by educating their clients on matters concerning money management and their importance and assist them in acquiring knowledge about various financial tools that aid to goal achievement. It is their role to act as caregivers to their customers by advising, reminding and offering any financial help to ensure that their goals are met.
Financial advisors are compensated mainly through the commissions earned or fees or they can get both.
Corporations and individuals should be keen when they choose a person responsible to plan their finances and they may do so by following some of the guidelines listed below. It is important that organizations and individuals first find out their needs to ensure that they don’t lose track by hiring a wrong and thereafter determine the cost level that works for them. It is important that before hiring, the various aspiring financial planners for your organization should present various documents displaying their various skills and qualifications acquired from training and recommendations if necessary, from the organizations that they ever worked with as this is important in gauging what they really can offer.
Listed below are the various types of financial planners. There are those types of money advisors that major in planning resources at warehouses and they ensure that the right stocks are dealt with and allocated successfully using the least cost possible. There are also insurance firms’ financial advisors who specialize in the protection of goods and can do business in investment products, others offer investment services in banks, some offers advisory services in private banks and many more and these various types falls under the three categories; fee-based, commission-based and fee only independent registered advisors.