What is a Financial Advisor or Financial Professional? (= Retirement/wealth management/financial professional)

One of the most popular things that people ask when dipping their toe into wealth management is, “What exactly can a financial advisor do for me?”

The first thing that comes to mind is someone who’s good with numbers, someone who has their finger on the market’s pulse, and who can help you do something like buying a house or car.

In reality, it is so much more.

What Does a Financial Professional Actually Do?

At times, the most significant part of the job is keeping people calm during volatility in the market. You don’t want to buy high and sell low; you want to weather the storm and be able to reach your financial goals.

A financial professional is someone who wears 30 different hats. You’ve got a portfolio manager, research analysis, psychologist, and someone who can refer you to the right insurance agents or attorneys.

There is a saying that financial professionals are the quarterbacks of your team, and they set you up for success by hitting you with the perfect connection at the right time, allowing you to score.

What is the Biggest Thing People Miss Without a Financial professional ?

Most people think all professionals do is pick stocks, but that isn’t the goal. A professional is someone who can paint a full financial picture for you. On your own, you might be able to do an okay job, but it is time to go to a professional at a certain point.

Sometimes it is due to a significant mistake; other times, it is due to a lack of time or ability to do it properly. In uncertain times, you can lose a lot of money by panicking and selling too soon or getting emotional about your finances.

A professional has the knowledge and experience in the financial market that comes with years of experience. You are a busy person, and you are a professional at living your life.

A financial professional does nothing but focus on things like wealth management, retirement, and the companies traded on the stock market on an intimate level.

How Does a Financial Professional Make Secure Decisions?

Financial professionals have teams of people doing research, full-time analysts assigned to specific companies on the stock exchange. From there, projections are made, and the research is synthesized into detailed reports that all play a role in the decision-making process.

Many things can factor into why you would choose one stock over another, such as:

  • New product announcements
  • Significant financial news about the company’s debt
  • News about recent regulations that impact the industry
  • Revenue earned

The number of companies tracked by the average financial professional is between 30-40, which is considered their core portfolio. Still, they will work with other analysts and managers to collaborate and get as much knowledge as necessary on as many companies as possible.

What are Things You Need to Watch Out for From Bad Advisors or Professionals?

Don’t ever fall for the magical exponential return. Bernie Madoff was very successful because he convinced the right people that he was the real deal when he wasn’t. His whole scheme could’ve been identified easily if any one of his clients checked to see if trades were made on the days that he said they were.

If someone is selling a product that can’t be summed up in five words or is so complicated that it doesn’t make sense no matter how it is explained, you should probably avoid investing gigantic amounts of money in it. Stick to what you know and what you are comfortable with, and do your research.

You need to check to see if your professional has been in trouble before or fired from a lot of different firms, and you need to go with someone you can trust. J. Taylor Private Wealth has a team of people ready to help you reach your financial goals. Contact us today to get going on achieving what you’ve set out to do.