AccountingBusiness Guidelines

Financial Advice – Why is it Essential?

Having adequate financial advice allows companies and individuals to get the most out of their money. After all, regardless of whether it is a family or a business, the financial problems are usually the same.

Lack of defined objectives, unnecessary expenses that can be avoided, or appropriately investing money that is earning little profitability, are just some of the most frequent scenarios that are discovered through financial advice in professional hands.

Who carries out the financial advice, and what are the benefits of using it?

This economic advisory service is carried out by expert professionals called financial advisers. Those who, thanks to their expert knowledge and their neutral perspective of the financial situation of the company or the person, can draw up a plan of action that is beneficial for the long-term economic interests of the same.

What objectives does a financial advisory seek to fulfill?

In short, the ultimate goal is to get the best possible return on the money available, either through eliminating expenses or strategically investing existing money. Among the usual objectives of a standard financial advisory, are the following:

  • Know the real state of the financial situation from which you start working.
  • Clearly define financial goals to achieve.
  • Create an action plan taking into account the financial and personal context in which the company or family is advised to adapt it realistically.
  • Carry out follow-up and control tasks of the steps outlined in the previous action plan.
  • Once the initial objectives have been achieved, reevaluate the situation and propose a new plan to follow according to business or personal goals.

In which cases is it a good idea to seek financial advice if I am not a company?

The above may sound too business-like to you. But remember that anyone can benefit from the advice of a financial professional, even if he does not have a business that needs it.

For any subject related to the economy of the home or family, a financial advisor will be a fundamental pillar so that everything goes without any surprises.

For example, in the following scenarios, a person can benefit from having professional financial advice:

  • Create a financial reserve to have an extra arrival at retirement in case, which is likely, the public pension is low.
  • People who have won a lottery prize and want to manage their money wisely instead of wasting it.
  • Those people who have received an inheritance.
  • Protect your assets in the event of a marriage agreement or divorce.
  • Wanting to create a college fund for a young son.
  • Increase the savings available to have an economic mattress in the event of any eventuality.

In short, anyone concerned about their financial future has an ally in financial advisory services who will take care of them and advise them with a lot of real experience.

If companies turn to them because they are very beneficial to them, the same happens with individuals and families.

What requirements must a quality financial advisory meet?

When we talk about finance and investment, especially at the business level and investments of considerable amount, it is very important to know the training of the person in whom we place our trust in their opinion and serve as external financial advice.

Although when we are dealing with the family economy with a low or medium income, a financial expert with a standard profile may be sufficient.

That is, a professional who has a higher education cycle such as a technician in Administration and Finance or a university degree in Business Administration is enough to manage the personal assets of an average family to perfection and help to clean up their finances correctly.

But if we are talking about a company or a person with significant capital to invest in, the need for that financial advisor to have a certified degree will be vital to protect the finances of a company. Especially if the advice recommends investing your available capital in the stock market or other investments that involve considerable risk.

Financial advisory service is advisable that when we talk about companies. A certified expert or with an official university degree is chosen. In general, master’s degrees in the financial branch tend to be very present in this type of advice.

All extensive financial advisors must comply with the MiFID (Markets in Financial Instruments Directive) directive, which guarantees transparency and the protection of investments made by advisors to guarantee good practices with their clients’ money.

These experts who follow the MiFID directives meet the criteria set by the National Securities Market Commission (CNMV) and are considered to have the appropriate knowledge to provide financial advice to any large company, and therefore also smaller.

Some of the titles that allow you to carry out financial advice:

  • Expert in European Financial Advisor
  • International Certificate of Advanced Wealth Management
  • International Certificate of Wealth and Investment Management
  • Certificate of Specialist in Banking and Financial Advice
  • Master’s Degree in Financial Consulting and Planning
  • Master in Finance
  • Diploma in Financial Advisory and Wealth Management
  • European Financial Advisor Diploma
  • Financial Professional Diploma
  • Postgraduate Diploma in Financial Counseling
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Ahmed Ismail

I'm a Civil Engineer. I like reading everything related to Business so I decided to launch the "Fast Grow Company" website to help Entrepreneurs in their business journey. Keep updated and follow us.

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