Having adequate financial advice allows both companies and individuals to get the most out of their money. After all, regardless of whether it is a family or a company, the financial problems are usually exactly the same.
Lack of defined objectives, unnecessary expenses that can be avoided, or appropriately investing money that is earning little return, are just some of the most frequent scenarios that are discovered through financial advice in professional hands.
Who carries out financial advice and what are the benefits of resorting to it?
This economic advisory service is carried out by expert professionals called financial advisors. Who, thanks to their expert knowledge and neutral perspective of the financial situation of the company or person, can draw up an action plan that is beneficial to the long-term economic interests of the same.
Also read: Why is financial freedom so important?
What objectives does a financial consultancy seek to fulfill?
In a nutshell, the ultimate goal is to get the most out of your available money, either by cutting costs or strategically investing existing money. Among the usual objectives of standard financial advice, are the following:
- Know the real state of the financial situation from which you start working.
- Clearly define financial goals to achieve.
- Create an action plan taking into account the financial and personal context in which the company or the advised family finds itself in order to realistically adapt it.
- Carry out monitoring and control tasks of the steps marked in the previous action plan.
- Once the initial objectives have been achieved, reassess the situation and propose a new plan to follow according to business or personal goals.
In what cases is it a good idea to resort to financial advice if I am not a company?
The above may sound too businesslike to you. But remember that anyone can take advantage of the advice of a financial professional, even if he does not have a company that needs it.
For any issue related to the home or family economy, a financial advisor will be a fundamental pillar so that everything goes without any surprises.
For example, in the following scenarios a person may benefit from professional financial advice:
- Create a financial reserve to have an extra upon retirement in the event that, as is likely, the public pension is low.
- People who have won a lottery prize and want to manage their money wisely instead of wasting it.
- Those people who have received an inheritance.
- Protect your assets in case of marriage agreement or divorce.
- Wanting to create a college fund for a young son.
- Increase available savings in order to have an economic cushion for any eventuality.
In short, anyone concerned about their financial future has an ally in financial advisory services who will take care of them and advise them with a lot of real experience.
If companies turn to them because they are very beneficial for them, the same happens with individuals and families.
Also read: Errors that lead to financial problems
What requirements must quality financial advice meet?
When we talk about finances and investment, especially at a business level and investments of a considerable amount, it is very important to know the training of the person in whom we place our trust in their opinion and who serves as external financial advice.
Although when we are dealing with the family economy with low or medium income, a standard profile finance expert may be enough.
In other words, a professional who has a higher education cycle such as a technician in Administration and Finance or a university degree in Business Administration is enough to manage the personal wealth of an average family perfectly and help to organize their finances correctly.
But if we are talking about a company or a person with significant capital to invest, the need for that financial advisor to have a certified degree will be vital to protect the finances of a company. Especially if the advice recommends investing the available capital in the stock market or other investments that involve considerable risk.
In the United States, it is advisable that financial advisory services, when we talk about companies, choose a certified expert or one with an official university degree. In general, master’s degrees in the financial branch are usually very present in this type of advice.
All large financial consultancies must comply with the MiFID directive, which guarantees the transparency and protection of investments made by advisors to guarantee good practices with their client’s money.
These experts who follow the MiFID directives meet the criteria set by the National Securities Market Commission (CNMV) and are considered to have the appropriate knowledge to provide financial advice to any large company, and therefore also smaller.
Some of the titles that allow financial advice:
- Expert in European Financial Advisor
- International Advanced Wealth Management Certificate
- International Certificate of Wealth and Investment Management
- Certificate of Specialist in Banking and Financial Advice
- Master’s Degree in Financial Planning and Advice
- Master in Finance
- Diploma in Financial Advice and Wealth Management
- European Financial Advisor Diploma
- Financial Professional Diploma
- Postgraduate Diploma in Financial Advice
