Expat financial advisor in Rwanda part 2 – Part one is here.
Who is a financial advisor?
A financial advisor (or financial advisor in some countries) is a certified investment professional who provides financial advice to clients to help them achieve their long-term financial goals for a fee. Financial advisors provide many different services such as investment management, tax planning, insurance, mortgages, retirement planning, and more. Some financial advisors may be paid a flat fee while others are paid a commission on the amount invested, depending on the applicable laws of the country in which they operate.
A financial advisor helps clients set realistic financial goals and provides objective advice to help them achieve their goals. They help organize financial assets in a way that enhances the client’s financial well-being.
The term financial advisor is used in a broader context to refer to different types of financial professionals such as stock brokers, insurance agents, real estate managers, risk managers, tax and financial planners. A financial advisor can also be called an investment advisor, financial planner, or investment advisor.
What does a financial advisor do?
Financial advisors assess the financial needs of their clients and provide them with professional investment advice in the short and long term. The financial advisor discusses investment options with the couple.
Personal financial advisors typically do the following:
- Arrange meetings with clients in person to discuss their financial goals.
- Answer and educate your clients about investment options and potential risks
- Help clients plan for specific circumstances, such as spending on education or retirement.
- Track customer accounts and determine if changes are needed to improve account performance or adapt to life changes such as marriage or having children.
- Research investment opportunities
While most financial advisors offer advice on a wide range of topics, some specialize in areas such as retirement or risk management.
After they have invested, the client should receive regular investment reports prepared by his financial advisor. They monitor a client’s investment and meet with each client at least once a year to inform them of a potential investment. They may adjust the financial plan during this time due to changed circumstances of the client or due to changes in investment options.
Some financial consultants are licensed to directly buy and sell financial products such as stocks, bonds, insurance, and other securities. Depending on the agreement they have with their clients, consultants may have the clients’ permission to make decisions about buying and selling stocks and bonds.
Local financial advisors
The difference between a local financial advisor and other types of financial advisors is actually the difference between a professional service approach and a product-specific approach. Of course, a wealth of local experience is an asset.
Hiring a local consultant has one key advantage: you can meet with someone who will advise you according to the rules of a particular place, in this case according to the rules of Rwanda.
Many firms cannot afford this. Whether or not you agree with virtual business, there are bound to be situations where you feel the need to meet and talk with someone who will give you valuable strategies and advice.
Other financial consulting companies usually distribute their workload to separate departments. Your “advisor” is most likely an account manager who acts as a buffer between you and some of the other people in the back office who are actually doing the work.
Your “planning” probably comes from the planning department; your investment analysis most likely comes from an analyst who is far from what really matters in your life, and those who actually implement the strategy usually see you as just a bunch of “buys” and “sells” that they each make shopping day. You simply won’t be able to meet with a real “advisor” because these responsibilities have been divided among several people in different offices.
On the other hand, you should be able to meet with a consultant if you choose an independent service-oriented consulting firm. Again, hiring a local financial advisor is optional, but for most people there are many benefits to having in-person meetings.
Most consultants to large financial companies, such as banks, will receive some or all of their compensation for selling you a product, be it stocks, bonds, mutual funds, insurance policies, or annuities.
This creates an inevitable conflict of interest. The securities laws in this country recognize this fact and require these “advisors” to be at a lower level. This is called the “suitability” standard, which means they only need to consider whether the products they sell are suitable for your broad investment profile.
The highest standard is the “fiduciary” standard. An independent consultant, whether online or local, who agrees to abide by this standard is required by law to always put you first.
These consultants never sell products, take commissions, or do anything else that could create a conflict of interest. They weigh all the factors in your situation before making any recommendations. Their advice is 100% objective. Whether you are hiring a local consultant or not, remember that they are objective and always prioritize their clients. Speaking of online financial advisors, let’s talk a little about them.
Online financial advisors
To get a specialized online financial advisory, check this form out.
Online financial advisors have been steadily gaining popularity over the years and for a variety of reasons.
One of the first reasons people started working with virtual financial advisors was to buy time in the olden days, since they didn’t have to get in their car or sit in traffic to meet their financial advisor when the phone call is in progress. or Zoom meetings. does not matter.
For people who travel frequently or plan to relocate to another part of the country (or live abroad), working with an online financial advisor will also ensure that your relationship doesn’t end wherever you are.
Perhaps the most significant advancement accelerating the trend towards virtual financial consulting is the ability of financial advisors to specialize in serving a niche that would be impractical if limited to working with clients in their hometown.
This way, you have the opportunity to hire a financial advisor who truly understands your individual needs, based on their education, experience and commitment to helping people like you.
Location is the first advantage
Investors looking to hire a consultant in cities with high cost of living often cannot find a consultant who is affordable or accepts them as clients if they do not meet the requirements based on their minimum assets.
Having a virtual relationship allows investors in, say, San Francisco or New York, to hire a consultant in Delaware or Mississippi who is likely to be more accessible and have a lower declared minimum asset, even if they have the same experience and level. service offers.
Everything should be in due time
Those professionals who work hard get good salaries, but they often can’t find a consultant who is available when they are – outside of office hours. An online consultant is usually not limited to “office” hours and can contact you whenever you need it!
In times of intense financial stress, a simple revision of the annual plan is often not enough. As an investor, you will most likely prefer to have your financial planners or advisors available throughout the year.
The client/consultant relationship is not a set-and-forget relationship, but rather an ongoing dialogue. This includes ongoing text or email conversations, which are much more convenient than scheduled face-to-face meetings once a year.
Financial planning really requires a lot of different documents. Those receiving basic financial planning advice will easily find hundreds of pages of advisory documentation.
There will be many documents that will also require your signature. As an online finance consultant, we are taking advantage of technological advances as there are many clouds and secure platforms that will store your financial data. Therefore, we can safely send you all these documents online by email.
But the most incredible thing is the opportunity to put an electronic signature! Use a few clicks to sign documents to flip your superuser, customize attachments, and implement Plan B.
All of these documents will be securely posted on an online portal that only you and your online financial advisor have access to.
Many people can approach this with skepticism, which also has its own explanation. This is a relatively new concept and it is difficult for people to get used to some of the things that can also be done on an online platform, but it is a great tool that saves you time and benefits in the first place.
Benefits of Hiring a Financial Advisor
There are many advantages to hiring a consultant who can help you make serious investment decisions, use the right banks, help you plan for your retirement, and more. Let’s take a look at some of the benefits.
You will receive professional guidance
While it’s best for you to decide how you want to manage your finances, getting advice from financial advisors can be a good idea. These specialists have completed several trainings and are highly qualified. Moreover, with years of experience, they can better advise you on where to invest at the moment. This is due to the fact that they have dealt with various financial problems and therefore are highly aware of what works and what does not, based on the individual needs and goals of each person.
You can say goodbye to your tax problems
Huge amounts of taxes on investments and assets can surpass the very purpose of their ownership. A good financial advisor understands this and organizes your finances in such a way that your tax expenses are kept to a minimum. High taxes mean low profits. Even seemingly promising investments can turn out to be the wrong decision due to the taxes associated with them. An independent financial advisor will help you here. They will not only help you reduce taxable income, but they will also keep you updated with the latest tax laws and amendments.
You can benefit from their research skills
The role of an independent financial advisor requires them to be active researchers. In-depth research across different industries, sectors and markets helps them stay competitive. They are knowledgeable about various sectors, financial markets, risks, applicable laws, tax regulations and other areas of financial management. That way, when you approach them with your problems, they will be well prepared to help you make informed decisions. This, in turn, will help minimize investment risks.
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Adam is an internationally recognised author on financial matters, with over 336.6 million answers views on Quora.com and a widely sold book on Amazon