Why do you need a Financial Advisor?

I always like to start from the definition of a world, because it gives immediate insights of the meaning, that most of the time we are unaware of.

Let’s start with the Wikipedia’s definition: A financial adviser or financial advisor is a professional who provides financial services to clients based on their financial situation.

This is a quite concise, but absolutely valid definition. Actually, the role of a financial advisor includes different activities.

Allow me to make a summary of the role of a financial advisor with the help of investopedia:

• Wealth management: Give advice on investments that fit your financial situation, objective, and risk profile.
• Tuition fee savings plan: Be prepared for the high fees for your children’s higher education.
• Retirement planning: One of the most required service by the clients.
• Healthcare and insurance assistance: A financial advisor offer you different solutions for your health insurance needs
• Risk management: He reduces the impact of unforeseen events that can impact your family’s financial situation, for example proposing a life insurance.

Ok! This is what a financial advisor does. But do you think this is enough? Do you think that to be a good financial advisor is enough?

NO!!!

Any financial advisor with an average education can follow all the above aspects.

To make the difference the financial advisor needs to be a fiduciary financial advisor. What does that mean?

The excellent financial advisor needs to put the interest’s client as a core objective of his career.

How he can do this?

First, he has to act as a psychologist and deeply understand the client’s financial situation, his desired financial objectives and his actual risk profile. This couldn’t be achieved with a simple questionnaire, but with a thorough and holistic assessment of the person, obtained with multiple meeting, clever questions, and a long term commitment to follow the client and his family in his long life financial journey.