Definition of Financial Advisor (Adviser/consultant)
You might have searched a lot about the exact, authentic and genuine definition of a financial advisor (adviser/consultant)! Here you have reached the right spot.
We have provided an authentic and legally provided definition of a financial advisor (adviser/consultant).
A financial adviser is also known by the names of financial consultant or financial advisor. A financial adviser is a person who is adept at providing financial advice or instruction to the people according to their needs and queries related to financial planning and investment.
In simple words, we can define a financial adviser as a person who will guide you financially and will provide you information about how to use your money for a better life.
Work of Financial Adviser
Broadly speaking, a financial adviser (consultant) provides a lot of things that include:-
- Products or
- services or
- instructions or
- retirement planning,
- How to save money,
- How to invest,
- Where to invest,
- Tax management,
- Estate planning and more.
Financial Adviser Vs Financial Advisor Vs Financial Consultant
A financial consultant is also known by the name of a financial adviser or financial advisor. But there is a little difference in the names of a financial adviser and financial advisor. While the former has “e” in the spelling, others have “o” in its spelling.
According to the Investment Advisers Act of 1940, “adviser” is a correct spelling. The word advisor is used to refer to someone who provides guidance or instructions.
When used in the legal reference, the word “adviser” is preferred over the word “advisor”.
So you are now well of the definition of financial consultant or financial advisor or financial adviser.
I hope this definition of the financial adviser will come handy to you while knowing about the services and products of a financial adviser.
Role and Importance of Financial Adviser (Advisor or Consultant)
A financial adviser is an important person from a financial point of view.
Let me explain with an example:
Have you ever noticed how some people are so rich that they are living a dream life of their own while some people, in spite of having handsome amount, struggle a lot to manage their day to day life?
I can guarantee that you have definitely encountered with such classes of people.
The difference lies in the financial planning of the two classes. The former class has knowledge of financial planning while later lacks it.
They plan their finances either through a legal or online financial adviser or through their own knowledge of financial planning.
Financial planning helps you to do two things:
- To save money (finances) and
- To make more money through effective use of saved money.
Most of the people are and you (might be) messy about your finances or lacks the knowledge of financial planning, it’s time to hire a financial planner or refer here for more articles that will help you out in every financial situation.