Financial and Investment Advisors
In today's volatile market, investors should not make all of their retirement investing decisions without the advice of an investment professional. These professionals watch the market regularly, and have the know-how to react based on various market factors.
Trained financial advisors should truly get to know their clients, and generally take a long-term view of your investment
horizon. In addition, financial advisors are highly trained to help you make objective decisions based on
your specific financial goals. The right financial advisor can
potentially make a big difference in your investment results.
Without professional guidance, many investors may act on emotion rather than information
about buying and selling their investments. Often these emptional decisions are based on good and bad news in the media. Your
financial advisor can encourage you to stay on course during uncertain
times. They help you make investment decisions for the right reasons.
Why You Should Use an Investment Advisor?
A Qualified Professional Can Help You:
Determine your long-term financial goals, based on your specific situation
Screen out funds that do not match your objectives, and not invest in the "hot" fund of the day
Assess risk tolerance based no your individual needs
Research funds that meet your requirements and screen out the ones that do not match your goals
Determine asset allocations based on your objectives
Understand the risks and potential rewards of investing
Monitor investment performance, and make changes as necessary
Review investment needs on a continual basis and monitor to make sure your investments are keeping pace with your needs, both current and future
Make decisions in difficult markets on an on-going basis
Answer questions, provide advice and reassurance in both up and down markets
Financial analysts and personal
financial advisors provide analysis and guidance to businesses and
individuals in order to help them with their investment decisions. Both types of
specialists gather financial information, analyze it, and make recommendations
to their clients based on each clients individual situation and goals. However, their job duties differ because of the type of
investment information they provide and the clients for whom they work.
For example, financial analysts assess the economic performance of companies and industries
for firms and institutions with money to invest. Personal financial advisors
generally work more as advisors for the financial needs of individuals, offering them a wide range
of investment options.
Financial analysts, also called securities analysts and investment
analysts, work for banks, insurance companies, mutual and pension
funds, securities firms, and other businesses. They help these
companies or their clients make investment decisions. Usually,
financial analysts study an entire industry, assessing current
trends in business practices, products, and industry competition. Financial
analysts read company financial statements and analyze commodity
prices, sales, costs, expenses, and tax rates in order to determine
a companys value and to project its future earnings. These analysts often meet
with company officials to gain a better insight into the firms
prospects and to determine its managerial effectiveness.
They must keep abreast of new regulations or policies that may
affect the industry, as well as monitor the economy to determine its
effect on earnings.
Financial analysts use spreadsheet and statistical software packages
to analyze financial data, spot trends, and develop forecasts. On
the basis of their results, they write reports and make
presentations, usually making recommendations to buy or sell a
particular investment or security. Senior analysts may even be the
ones who decide to buy or sell if they are responsible for managing
the company's or clients assets. Other analysts use the data they
find to measure the financial risks associated with making a
particular investment decision.
Financial analysts in investment banking departments of securities
or banking firms often work in teams, analyzing the future prospects
of companies that want to sell shares to the public for the first
time. They also ensure that the forms and written materials
necessary for compliance with Securities and Exchange Commission (
SEC)
regulations are accurate and complete. They may make
presentations to prospective investors about the merits of investing
in the new company. Financial analysts also work in mergers and
acquisitions departments, preparing analyses on the costs and
benefits of a proposed merger or takeover.
Source: Department of Labor (www.dol.gov)
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