Financial Adviser Vs Investment Advisor? Managing finances can indeed be done alone. But for those who are busy, have more than one source of income, many assets, you can use the services of a third party.
These third parties can assist you in managing funds in order to obtain optimal results. Not only in the present, but also in the future, especially in terms of finance.
These third parties are financial advisors and investment advisors. Even though they are both financial experts, they have significant differences. And not many people know this.
So that you understand the difference between a financial advisor and an investment advisor, here is a review:
Investment Advisor vs. Financial Advisor: There is a Difference
Financial advisors are often also called financial consultants. His job is to provide consulting services to assist clients (individuals and corporates) in all financial aspects. From planning to implementation.
Financial advisors help you in managing your income and expenses appropriately to achieve certain targets or goals. That way, you can save a lot of money and get out of financial trouble.
A financial advisor will also provide advice in managing your money, including preparing a retirement plan, choosing the right and profitable investment type according to your risk profile, providing insurance product choices, planning children’s education funds, debt reduction, and others.
You are not necessarily able to manage finances well, so using the services of a financial advisor is the right choice. That way, you can avoid various financial risks that can drain your money and assets, such as waste, piles of debt, investment mistakes, and others.
So, the role of a financial advisor goes beyond just managing money for investments. The scale is wider. Directs you to manage money wisely, so that you are more focused and achieve financial goals, as well as financial stability.
A financial advisor does not work without education, training, and work experience. To be named a financial advisor, you must have at least a Chartered Financial Consultant (ChFC) or Certified Financial Planner (CFP) certification or license.
But even cooler if the financial advisor holds the prestigious certification in the field of investment and world finance, the Chartered Financial Analyst (CFA).
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Meanwhile, an investment advisor is a party who provides advice to other parties regarding the sale and purchase of securities in exchange for services. Which includes securities or securities, including stocks, bonds, debt acknowledgments, investment contract participation units, and others.
Investment advisors for individuals or companies in carrying out their business activities must obtain permits from government institutions. Therefore, investment advisors must meet certain requirements, such as expertise in securities analysis.
The mandatory requirement for prospective investment advisors is to have an individual license as an Investment Manager Representative. Furthermore, investment advisory business activities are based on the trust of customers.
So, in carrying out their activities, they must prioritize and protect the interests of their customers. These interests must not conflict with the applicable laws and regulations and must avoid all actions that conflict with the interests of the customer concerned.
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As a party that is trusted by clients or customers, investment advisors must honestly and correctly disclose material facts for customers to know about their professional abilities and financial condition.