What Does A Personal Financial Advisor Do?

Firms like Pillar Wealth Management, LLC. help clients who need to invest $5 million to $500 million in liquid assets, to ensure they are prepared for the future.

These are just a few examples of the effects of unfavorable financial outcomes in our lives. To live comfortably today, we need to earn a substantial amount of money to afford necessities.

In addition to that, making the right choices helps us create a financial cushion that protects us against possible insolvency, and helps us live in financial freedom without losing our homes or investments once we retire. To achieve this aim, many people turn to a financial advisor for professional insights on money management.

Do you need a financial planner to help you manage $5 million or more in liquid assets? Schedule your consultation call with Pillar Wealth Management, LLC.’s co-founders Hutch Ashoo and Chris Snyder.

One needs to go no further than Wall Street, among the senior executives, corporate professionals, and entrepreneurs to find people who can acquire and manage their wealth and properties seamlessly. Do you think this is impossible? The answer isn’t far-fetched.

Finance, and money management, is one of the most significant sectors in a business that can make or break a business owner. Ideally, everyone needs finances for daily life, which makes the concept a critical discussion for everyone.

These business owners understand the underlying need to keep a business well-financed and managed in alignment with personal goals and organizational development. Therefore, they seek top-notch personal financial advisors’ services to help them achieve their financial goals while they focus on the growth of their various businesses.

Who is a personal financial advisor?

A personal financial advisor is an educated investment professional who provides financial advice and consultation services to their clients regarding an investment portfolio. They also help their clients set and meet long-term financial goals.

Besides feeling good about giving sound advice and consultation on an individual’s or entity’s finances, a personal financial advisor also helps their clients strategize on ways to create more wealth, eliminate debt, and reduce cost.

A personal financial advisor plays a similar role to an investment consultant, investment manager, and financial planner. They analyze a client’s current financial status to help the client set a reasonable and achievable financial goal.

They are trained in tax planning, risk management, estate management, asset allocation, and retirement planning and can help their client in different settings and circumstances.

While finding mega deals and extending your money is an essential aspect of accumulating wealth and growing your business, deciding on the right investment and properties to avoid wasteful spending is also important.

When To Get A Financial Advisor

If you find money management difficult and need help setting long-term goals, you may want to get a financial advisor. A financial advisor has the expertise to get you on track to saving money for retirement and getting started with investing.

A financial advisor can provide an unbiased outside view of your financial situation and make appropriate recommendations. Simply having an advisor can boost your confidence and increase your motivation to stick to a plan.

You’ll have to pay some fees, but in the long run, you’ll benefit both emotionally and financially from expert advice. As well as adding to your income through investments, your advisor may help you reduce your taxes.

What To Expect From A Financial Advisor 

At the start of your relationship, your advisor will prepare a financial plan based on your current financial situation. The advisor takes into account your assets (such as bank accounts and investments), income, expenses, insurance policies, and recent tax returns. A financial plan may include managing debt, defining a savings plan, opening a retirement account, and investing in stocks, bonds, funds, and other investment vehicles.

You should expect to meet with your advisor on a quarterly basis to review your plan, as well as whenever there is an important change in your personal life that could impact your finances, like getting married, divorced, or having a child.

3 Types of Financial Advisors

1. Robo-Advisors

Robo-advisors are accessible from an online provider of financial services, such as an investment firm or brokerage. This type of advisor gathers data from you to develop an investment portfolio based on the information you provide. A robo-advisor is comprised of computer software that uses complex algorithms to create and manage your investment plan with automatic rebalancing. It is a low-cost alternative to a human advisor.

A robo-advisor is great for a beginner investor who cannot afford the account minimums of many traditional advisors. 

2. Online Financial Planners

An online financial planner provides a combination of automation and personal advice. The online platform will typically manage your portfolio, which is built from your requirements, but at the same time, you have access to an individual or team of advisors to answer your questions and provide more in-depth recommendations.

Depending on how much you’re willing to pay, you can benefit from occasional virtual meetings or having a dedicated planner who can track your progress and meet with you regularly online.

3. Traditional Financial Advisors

Traditional advisors are finance professionals with expertise in financial planning, investment management, estate planning, and tax planning, among other services. Some traditional advisors are also wealth managers who work with high-net-worth individuals.

A traditional advisor may be a certified financial planner (CFP). A CFP is also a fiduciary.

A traditional advisor will craft a retirement plan and/or an investment portfolio based on your financial situation and your short- and long-term goals.

A traditional advisor will meet with you in person to initiate a relationship and for periodic reviews of your financial plan. Many individuals prefer to have a long-term relationship with an advisor, building trust and understanding over time.

Traditional advisors charge higher fees and have higher account minimums than online advisors and robo-advisor.

Which type of financial advisor is right for you?

Which type of advisor you choose depends on various factors, such as:

How much you’re willing to pay for financial services — robo-advisors are the least pricey while offering fewer services.

How confident you are about managing your money — with a traditional advisor, you’ll get plenty of help managing your finances, thus increasing your confidence and knowledge to improve your money management skills.

The complexity of your financial needs — Robo-advisors and online planners may not offer the services your need, such as creating a complex estate plan or a portfolio of alternative investments.

Investment returns you should expect

Historically, the average return on investment in the stock market is around 10%, but this reflects a long-term investment, not a result you can expect today. So, if you want to increase your yearly income, you’ll need a well-diversified portfolio that includes income-generating investments, which is likely to yield less than 10% while still beating inflation.

You will want to discuss asset allocation with your advisor, who will build a portfolio that takes into account your risk tolerance and your income goals, both short- and long-term.

There are several reasons why you need to hire a personal financial advisor.

• You need a road map for planning present and future financial commitments. This situation many an entrepreneur finds themselves in commonly, especially when they are just starting. There are so many goals competing for the limited available resources.
• You know you’re not good with economics and finance, and you need a third-party professional opinion on how best to make emotional investments. This phase is where you’ve come to terms with your weaknesses, and you’re willing to seek professional help.
• Your wealth and commitments are growing at a sporadic rate. You have come to realize that investing in a professional personal financial advisor to help you sustain and increase your wealth is one of the best investments you could undertake at this point.

In an ideal world, everyone ought to have a personal financial adviser with whom they can meet or call once a week or month, depending on their financial strength to talk about their business plan for that period. However, personal financial advisors are costly.

They are expensive because an average personal financial advisor has expertise in at least four different fields, and the value derived from their services are incredibly vital to the business and personal growth of their clients. Therefore, the decision to hire a financial advisor requires a balanced cost-benefit evaluation.

Learn more about hiring a financial manager as a multi-millionaire by receiving your copy of The Ultimate Guide to Choosing the Best Financial Advisor for Investors with $5 Million to $500 Million in Liquid Assets from Pillar Wealth Management, LLC.

What does a personal financial advisor do?

When it comes to planning on how to manage finances to experience comfortable retirement or business goals, many people feel overwhelmed and don’t know how to start. That’s where the help of a personal financial advisor comes in.

An educated, trained, and certified, personal financial advisor can guide a client on the steps it takes to achieve business growth, security, and comfortable retirement.

The personal financial advisor assesses the clients’ financial needs and helps them with advice and decision making suggestions on the topics of education, expenses, retirement, tax laws, insurance, and investments such as stocks and bonds that suit the clients’ short- and long-term goals.

A personal financial advisor typically does the following:

• Educates clients on investment options and potential risks.
• Meet with clients weekly or monthly to discuss the client’s financial goals.
• Explains investment terms and conditions in the simplest ways to the client.
• Recommends or presents the best investment options for the client.
• Help the client plan for specific circumstances or long-term goals, such as education expenses or retirement.
• The more valuable services and advice personal financial advisor offer, the easier it is for clients to grow their business.
• Locates investment opportunities on behalf of their clients.

A client can let their financial advisor act as a fiduciary. That is, carry out investment and make deals on behalf of their clients. Some financial advisors are licensed to directly buy and sell bonds, stock, insurance, and annuities.

Depending on the agreement they have with their client, they may act on their discretion and make favorable deals without getting the client’s consent or seeking approval beforehand.

Most financial advisers are trained, educated, and experienced in several commercial fields. Most financial advisors offer advice on specialized areas such as retirement, investment, risk management, and real estate.

They can then go ahead to evaluate a client’s readiness to take chances and then adjust investments accordingly to suit the client’s requests. After investing funds, they monitor the client’s investment performance and make changes to fit current circumstances when needed.

Now that you know what a financial advisor does, get a copy of our guide Improving Portfolio Performance: The Shifts Multi-Millionaires Must Make To Achieve Financial Security and Serenity and discover the steps you should take to protect your wealth.

Personal financial advisor vs. financial analyst

In the field of finance, investment and market analysis, Financial advisors and financial analysts are two similar occupations and share a lot in common, but play two different roles.

A personal financial advisor focuses on their client’s current financial status to help the client set achievable and reasonable financial goals, while analysts typically spend more time analyzing past trends and complex economic data to determine the best investment opportunities.

Most corporate organizations have a personal financial advisor to provide objective advice, recommend investments, and help the company measure the consequences of their financial decisions.

A financial analyst runs the assessment and research function in a business. In other words, a personal financial advisor in an organization performs more of the relationship management function. While the financial analyst performs more of the research and analysis work.

One of the essential things in a free market economy is to have a trusted and experienced adviser or analyst who can comprehensively explain and analyze the complex system’s intricacies in the financial world.

Financial analysts and financial advisors help individuals and companies make the best use of their financial resources to generate sustainable profit and secure a better future, while also providing valuable services.

Most financial analysts will work with banks, insurance, or investment firms. Their goal is to analyze the company’s financial statements, tax rates, and expenses to understand the necessary steps vital to company growth.

When working in synergy, a financial analyst would analyze past trends, and complex data and a financial advisor would help the firm or individual client set a reasonable and achievable goal based on the financial analyst’s conclusion.

In a business establishment, a financial adviser works with the results of the financial analyst to help the firm make an informed decision. Additionally, while financial analysts work or analyze previous trends and data to create future projections, financial advisors work on current facts to make a future investment.

If you need a fee-only financial planner and you have $5 million to $500 million in assets to manage, we can help. Register for your free consultation with Pillar Wealth Management, LLC.’s co-founders Hutch Ashoo and Chris Snyder.

Personal financial advisor job description

The job description of financial analyst is intricate and broad, but straight forward. A personal financial advisor provides financial counsel on investment and investment strategies to individuals.

They look at an individual’s current overall financial state to help them improve upon it by recommending profitable investments, savings, stock, or other investment decisions.

The primary job description of a financial advisor is to:

• Provide valuable and actionable financial advice to individuals.
• Conduct a series of interviews to help clients determine their current income, expenses, tax status, business objectives, insurance, risk tolerance, and other information necessary for developing a financial plan.
• Recommend practical frameworks suitable to their client’s financial goals and objectives.
• Offer advice on cash management, debt management, and insurance.
• Identify new opportunities in the business world and keep their client informed of the latest market trends.
• Review income and expenses to determine if there’s need for change in financial strategies.
• Buy stocks, bonds, and mutual funds on behalf of their clients
• Educate their clients on the best financial decisions.

As a high net-worth individual, it’s important to protect your wealth. Receive your copy of the book The Art of Protecting Ultra-High Net Worth Portfolios and Estates: Strategies for Families Worth $25 Million to $500 Million and learn the wealth protection steps you should take for future generations.

How to hire the best personal financial advisor near me

• The financial planner’s pay structure
• The financial planner’s fiduciary duty
• Critically inspect your final pick
• Avoid market manipulators

If you are searching for a financial planner that manages clients with $5 million to $500 million investment portfolios, learn how Pillar Wealth Management, LLC. can help. Register here for a consultation with company co-founders Hutch Ashoo and Chris Snyder today.

When you are searching for the best personal financial advisors, try to hire a certified expert with a convincing record of accomplishment. Certified personal financial advisors are trained and licensed to give individuals and business firms financial advice.

They also belong to associations that regulate and mandate them to take classes on different aspects of financial planning to keep them up to date with the new changes in the industry.

Depending on your location, you can also ask people to recommend the best personal financial advisers that are available in that area. You should also consider a personal advisor that is certified by the National Association of Personal Financial Advisor (NAPFA). However, before going on the hunt for a personal financial advisor, start by considering the following factors.

• The financial planner’s pay structure.

If you’re planning to work with your personal financial advisor on a long-term basis, avoid commission-based personal financial advisors; due to the pay structure, they may be less enthusiastic about pushing a deal through if it’s not in their favor, even though it’s in their client’s favor. But fee-based financial advisors aren’t affected. Hence, they will source and strike the best deals.

• The financial planner’s fiduciary duty.

This gives the advisor the privilege to transact, purchase, and bid on investments in the client’s best interest without seeking the client’s consent beforehand. Personal financial advisors who are not fiduciaries are restricted. Request for a personal financial advisor that can act in the client’s interest without the need to get you involved in every transaction.

• Critically inspect your final pick.

Research your candidates, most importantly, the one you would like to select. Get to know about their history, education, experience, and relationship status. Enquire about their financial status, and if possible, with their current and old clients who share similar goals, and find out on how they are able to work with their current clients and help them grow their investments.

We’ve made a resource to help you find an exceptional financial advisor. Don’t miss your opportunity to receive The Ultimate Guide to Choosing the Best Financial Advisor: For Investors with $5 Million to $500 Million in Liquid Assets, from our team at Pillar Wealth Management, LLC.

• Avoid market manipulators.

Avoid financial advisor who violate business ethics, especially those who do so to make profit. These are the wrong type of people you need to have as your advisor.

They are dangerous, and they have the potential to ruin your business. Dealing with them might eventually cost you a lot and ruin your business. Establishing good business practices and doing business the legitimate way is the only way.

Finance has become a crucial discussion in every individual and organization’s day-to-day activities. Hence, the need to employ a professional financial advisor’s services to provide excellent financial services for your business.

The right advisor will apply their wealth of experience, and commercial discipline to help your business overcome unnecessary financial constraints. This can include capital investment and money management.

Although, for some, hiring a personal financial advisor can be expensive, it can be one of the best decisions you’ll ever make. If need a financial planner to help you manage $5 million to $500 million then our team would be happy to help.

Pillar Wealth Management LLC. is currently offering a no-obligation consultation with company co-founders Hutch Ashoo and Chris Snyder. Set your appointment today.