What Can Finance Advisors Do For You?
Doug Smith

Defined Tag: Finance Advisors.

Finance advisors are as necessary in the financial world as lawyers are in the legal world. Finance is not an easy subject for the novice to comprehend. It is full of confusing jargon that is hard to understand.

Do you know the difference between a money market and a Certificate of Deposit (CD)? How about the difference between Fannie Mae (Federal National Mortgage Association or FNMA) and Freddie Mac (Federal Home Loan and Mortgage Corporation or FHLMC)? Mutual funds and treasury bonds? Government National Mortgage Association (Ginnie Mae or GNMA) or Sallie Mae?

It is okay if you don't, because many consumers don't know either. That's why you need sound financial advice to navigate the world of money.

Financial advice can come from many sources. It can originate from your Certified Public Accountant (CPA), your income tax preparation specialist, a stock broker, and even your local bank's loan officer.

However, there is a group of highly trained financial specialists whose job it is to advise their clients on money matters. They are called Certified Financial Planners (CFP), Investment Advisors, Financial Advisors, and similar titles.

Your advisor's goal is to help you manage your financial assets so that your money grows via interest or dividends. At the same time, your financier will help you to minimize risks and debts, to keep you credit rating good. Income, taxes, insurance, and investments will be just a part of the economic advice given.

The financial advising process begins usually with a visit to your chosen planner. This money professional will examine your current income, debts, assets, investments, and other fiscal aspects of your life. He or she will ask what your goals are, such as saving for college for your children, saving for retirement, to reach retirement age with a certain lump sum of money, and so on. Then you will be given a plan of monetary advice to follow to reach these goals.

You will likely meet with your financial analyst once or twice in the following months to see how the plan is progressing. The visits may taper to once or twice a year after that. If the periodic financial reviews show that the recommended investments are not producing the desired income, or a certain loan was not approved, or if credit card debt is not disappearing as fast as it should, your financial advice will be modified to meet the goals of the financial plan.

You can find reputable and knowledgeable CFPs, CPAs and other financial analysts in the phone book, on the internet, and by asking your friends and family. You may have to interview several potential planners before you decide on one, and always ask for references. Call the state office which governs financial planners to check on your potential hires.

Narrow down your choices of financial advisors to one who will help your chart your course through troubled economic waters.

Copyright 2008 by Doug Smith. All Rights Reserved Worldwide. Unauthorized Duplication Prohibited. Not Intended As Professional Advice.