Explaining Services Offered by a Financial Advisor

4 days ago Ladonna

A financial advisor offers a wide variety of services, not just investment management, and is there for people and companies to make better financial choices throughout their lives. Being aware of the scope of what a financial advisor south yarra provides enables clients to pinpoint specifically where a financial adviser can be most beneficial.

The key services a financial advisor provides

Investment advice and portfolio management

Building and maintaining an investment portfolio based on the client’s objectives, risk tolerance and time horizon is one of the key prongs of financial advice a financial advisor offers. A structured investment approach eliminates the element of uncertainty from investing in the markets and ensures the portfolio moves towards specific financial goals.A financial advisor offers a number of investment services that encompass:

Risk profiling and portfolio construction: Understanding the client’s risk tolerance and creating a well-rounded portfolio for both their risk tolerance and goals.
Ongoing portfolio review and rebalancing: Reviewing investment performance on a regular basis and adjusting as necessary to keep your basic asset mix unchanged.
Direct share and managed fund selection: Providing tailored information about specific shares, ETFs and managed funds aligned with the agreed investment plans and return objectives.
Market and economic insight: Providing context to how market and economic changes impact the portfolio and whether any changes are warranted.
Performance reporting and transparency:Delivering transparent and regular performance reports to the clients relative to scheme benchmarks and client’s financial goals.

Retirement planning and superannuation advice

Earning regular savings isn’t enough; it takes a systematic approach to take full advantage of the contributions, tax management and when to tap into the savings to fund the lifestyle they desire during retirement. With a financial advisor’s help, you can make your retirement plan decisions with confidence and clarity. There are a number of financial planning services that a financial advisor provides for retirement:

Superannuation strategy and contribution advice: Discussing your contribution patterns and strategies to increase super balance, such as salary sacrifice and after tax contributions.
Fund selection and consolidation: Researching super funds, combining super funds and choosing the appropriate fund structure to minimize fees and maximize returns.
Transition to retirement planning: Planning for a move from full time working to retirement in a manner that comprises current income requirements with long term asset protection.
Retirement income projections: Modelling of forecast retirement income levels using current balances, contribution levels and expected investment returns to identify early on if there is a shortfall.

Insurance and risk management

It is equally vital to maintain and preserve wealth and income created over the years as it is to generate new wealth. A financial advisor will be able to determine the kinds of risks that face your client and suggest appropriate insurance solutions to secure his financial health, regardless of illness, injury, or even death. A financial advisor’s insurance and risk management services include:

Life insurance needs analysis: Obtaining an accurate amount of life cover to safeguard dependents financial well-being if the client dies.
Income protection insurance: Advocating income replacement insurance that provides a continued payout while the client is not able to work because of illness/injury for an extended period of time.
Total and permanent disability cover: Setting up TPD insurance within or outside of super, which will pay out a lump sum if you become permanently disabled and unable to find a future job.
Trauma and critical illness cover: Policy cover to pay a lump sum when diagnosis of a serious illness, important for retaining financial strength whilst receiving treatment.

Conclusion

A financial advisor offers wide-spread services in investment and retirement planning, structuring your tax affairs, insurance and risk management. With the guidance of a professional advisor, your financial choices can be well informed and act in relation to your long-term goals.