Each person, like any company, regularly has a desire aimed at increasing the available capital. There are many different ways to improve the current financial situation.
These include bank deposits, investments, raising additional funds and much more. The choice is wide, but, alas, guarantees are not everywhere. Few ordinary people boast in-depth knowledge of finance and investing. Even among entrepreneurs there are few of them, because far from all of them have specialized business education. Therefore, it is not surprising that many of them turn to a specialist such as a financial consultant for help. His services are necessary in those situations when you need to make an important decision before concluding a contract, obtaining a loan, raising new funds, investing and more. A financial consultant is a specialist who analyzes the situation, evaluates all the risks and makes recommendations. He does not make a final decision. But it is precisely his recommendations that the client listens to before making a decision.
Who is a financial advisor?
This is a fairly responsible profession, requiring not only education, but also appropriate skills. It’s not enough to have a “crust” on hand. A financial consultant is a specialist in investment, strategic planning, which helps ordinary people and organizations save and increase their capital. Ideally, such a specialist should be able to solve all the financial problems of the client. If there are problems, he must find ways out of them. In the presence of available funds, a specialist studies the market and selects the most attractive and profitable investment objects. Also, the consultant can find ways to increase the organization's own capital by attracting investors, new business partners.
If we talk about the United States and Western Europe, where the demand for such specialists is very high, the services of a financial adviser are necessary for planning short-term and long-term financial goals. This includes goals such as acquiring a home, paying for education, and retirement. In order to make a decision related to finances, it is necessary to solve a whole range of problems, evaluate your capabilities, analyze market offers, and take into account possible risks. Only a specialist working in this field can do this qualitatively. And a financial adviser is the person who will help you make the right choice.
Profession history
In the West, this profession appeared a long time ago. Their services are used not only by companies, but also by the general population. It is normal for them to have, for example, a family doctor, dentist and financial consultant. In our country, the profession appeared after perestroika in the 90s of the last century. But so far their services are more in demand in the business sphere. A very small percentage of ordinary people turn to such specialists. The rest prefer to make their own decisions regarding personal finances.
Where does the financial advisor work?
There are not many options. It could be:
- financial consultant at the bank;
- free specialist;
- consulting agency employee;
- full-time specialist of a large company.
Mostly in the Russian market, such specialists work in large consulting companies.
Also quite a large number of private specialists. Only large firms can afford full-time consultants. Most business representatives prefer to contact consulting firms if they require such services, because it is more profitable than holding a full-time specialist.
Who may need his services?
Customers can be very different. It:
- ordinary people;
- individual entrepreneurs;
- representatives of small, medium, large business.
An ordinary person can turn to such a specialist, for example, if he wants to invest money in stocks, real estate or in something else, so as not to lose money, minimize risks and accurately make a profit. Entrepreneurs also have roughly the same goals. A financial consultant explains to his client the differences between preferred shares and ordinary shares, helps to choose a contribution. Moreover, his services may be required when choosing a bank loan in order to get it on the most favorable terms.
As for business representatives, they pose a variety of tasks. It all depends on the situation. Working as a financial consultant also implies solving client problems, finding ways out of the current risk situation. Therefore, even if it seems that the company has come to an end and it does not get out of debts, fines, a well-formed strategy gives a chance for a happy ending. If the company does not have problems, it may require the services of such a specialist in order to grow and develop, attract new customers, business partners, and increase net profit. Of course, a lot also depends on the scope of the company.
If a consultant specializes specifically in the stock market, regardless of whether he works with private or legal entities, he should monitor quotes, make forecasts, and analyze incoming news. The specialist sends a signal to the client to buy or sell shares, bonds, currency, if the time is right.
Financial Advisor at the Bank
In Russian banks, a financial consultant, whose responsibilities may differ slightly from standard ones, often serves as a sales manager. Of course, there are banks where the services of top-class professionals are really offered, which work with individuals and legal entities.
But mainly in a bank, a financial consultant is an employee who provides information on products and also sells them. Therefore, in such organizations, specialized education is not always required from applicants for this position. The employer is interested in experience and skills in sales. For this reason, ordinary financial consultants working in the front offices of banks are not able to advise clients, plan short-term and long-term goals, and select investment objects, because they do not understand anything about this.
What kind of education is required
There is an association of financial advisors. And if you study the portfolio of specialists, most of them have an economic education. These may be such directions as:
- economy;
- accounting and audit;
- management;
- finance and credit and more.
Also in this area there are many lawyers who worked in the field of business, mathematicians. This work requires an analytical mindset. Therefore, among such specialists there are many graduates of the faculty of mechanics and mathematics.
What qualities should a specialist have and what is required of him
Basic requirements for a financial adviser:
- Responsibility. He works with other people's money. Therefore, it is important to recognize and understand all seriousness.
- Honesty. The specialist represents, first of all, the interests of his client. Therefore, it should not be that he encourages the client to purchase, for example, shares of the company, which then will give him compensation in an envelope, while there were other, more profitable investment options.
- Ability to learn. The availability of higher education alone is not enough. The world, including the sphere of finance, is changing rapidly and developing. And you must be aware of the latest events, trends, trends. For example, as early as 10 years ago, few people even knew what cryptocurrency is. And now, interest among investors is one of the highest.
- Multitasking. Such a specialist may have several clients. And he needs to work in different directions, solve a large number of tasks, without forgetting anything at the same time.
- Ability to analyze and evaluate financial risks. It requires not only education, but also practical experience in business.
- Knowledge of financial management, accounting, tax legislation of the country.
- Possession of PC and specialized programs.
The main types of work
The financial consultant performs the following work:
- market analysis;
- identification of the needs and goals of the client;
- strategy development;
- market monitoring;
- search, definition of new opportunities for the client
Clients turn to such a specialist, understanding the fact that they themselves have little understanding in this area, and the help of a person competent in these matters is needed. Since we are talking about money, often very large, you need to choose the best financial adviser to be 150% sure of his competence and professionalism.
How to become a financial advisor
Ideally, a specialized education is required. Although you can go the other way and get an assistant in a consulting firm, gradually grow and develop in this area. But even choosing this path, it is better to get a specialized education in parallel, at least in absentia, because customers pay attention to this moment. You can’t just take it and decide to work in this area.
You can make such a decision, of course, but it is unlikely that customers will come running in a crowd. Very important and need a reputation, experience. Therefore, in this area you need to earn a name for yourself. And this is being done slowly. To begin with, it is better to start with a consulting firm, gain experience. Then, if there is a desire, you can go free swimming or get a full-time specialist in a large organization.
Career prospects
In our country, the people, however, like the business sector, are only mastering the basics of financial literacy. Therefore, such specialists have quite good prospects. We must not forget about the massive computerization and robotization of many areas, including the financial sector. To compete with smart and fast cars in the future, you really need to be a high-class professional.
How much does a financial advisor earn?
A well-known financial consultant, whose reviews in professional circles are positive, earns up to several tens of thousands of dollars a year. But there are few such specialists. If these are bank employees, then their monthly income varies on average between 25,000 and 80,000 rubles and depends mainly on sales and completed plans. Employees of consulting firms earn 35,000 - 150,000 rubles, depending on qualifications, experience, as well as the region in which the services are provided.