Financial Advisor Companies - Financial Planners - Financial Service Providers

What Does a Financial Advisor do?

Financial advisors help corporations and individuals with their finances and wealth management. They can help with retirement planning as well as investing and deal with a large variety of funds and stocks to help their clients be secure. If you’re looking for help with retirement a financial advisor can help you with life insurance and home insurance and even mortgages. If you consult with an advisor to help with your retirement they will place your assets into various accounts based upon your risk tolerance. Your risk tolerance is a factor that is related to the values of your assets and how willing you are to risk some assets for the possible long term gains of more.


The most common options for your assets include the popular 401(k)/403(b) Roth accounts. If you have one of these accounts you will contribute a portion of your paycheck every month, which reduces your taxable income. When you go to withdraw the funds later on in retirement you will then be taxed. You should talk to your advisor and employer about these types of Roth accounts because often an employer will match your contributions to a 401(k) or 403(b) account. Mutual funds are another option. These funds take money from many people and invest them collectively into relatively safe bets such as securities. Mutual funds usually have an entire board of directors overseeing their operations and some are very successful. The less of a risk tolerance factor the more likely your financial advisor will recommend your funds be placed into an account known as a CD. Also known as certificates of deposit these funds are almost entirely risk free. You place your money in a CD and over time you receive interests. Interest rates on CDs are generally higher than your average savings account but if you take the money out before the period of time you signed up for is over you will lose your interest.


There are other ways an advisor can help you prepare for retirement as well. Besides working with you to obtain life insurance an advisor can help you with mortgages and help you obtain critical illness insurance. Mortgages can be tricky because there are many types of mortgages with many types of terms and provisions. Some mortgages have rates that are fixed and some have rates that may vary as the payment plan goes on. Since mortgages are generally required to buy a home unless you’re very secure financially it can certainly be worth it to look into mortgage loans with a trusted financial advisor before making the plunge all on your own. Finally you have to consider if you’d like your advisor to be primarily fee based or if he should receive a commission for excellent work. Sometimes a commission based advisor will be more ready to perform riskier maneuvers with your assets and that is something to be aware. Check out an advisor today and see to it that you’re secure in retirement.



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