The Difference Between Investment Advisor and Financial Advisor

Queconomics – Managing finances can indeed be done alone, but you need either an investment advisor or a financial advisor. These third parties can assist you in managing funds to obtain optimal results.

Not only in the present but also in the future, especially in terms of finance. Even though they are both financial experts, they have significant differences. And not many people know this. Financial advisors are often also called financial consultants.

His job is to provide consulting services to assist clients (individuals and corporates) in all financial aspects. Financial advisors help you manage your income and expenses appropriately to achieve specific targets or goals from planning to implementation.

That way, you can save much money and get out of financial trouble. A financial advisor will also advise on your money management.

These suggestions include preparing a retirement plan, choosing the right and profitable investment type according to your risk profile, providing a choice of insurance products, planning children’s education funds, debt reduction, and others.

You are not necessarily able to manage finances well, so using the services of a financial advisor is the right choice. That way, you can avoid various financial risks that can drain your money and assets, such as waste, piles of debt, investment mistakes, and others.

So, the role of a financial advisor goes beyond just managing money for investments. The scale is broader. Directs you to work money wisely so that you are more focused and achieve financial goals, as well as financial stability.

What You Need to Know About Investment Advisor

It is a party that provides advice to other parties regarding the sale and purchase of securities in exchange for services, which includes securities or securities, including stocks, bonds, debt acknowledgments, investment contract participation units, and others.

In carrying out their business activities, advisors for individuals or companies must obtain permission from the Financial Services Authority (OJK).

Therefore, these advisors must meet specific requirements, such as expertise in securities analysis. The mandatory requirement for prospective advisors is to have an individual license as an Investment Manager Representative.

The Customers’ Trust is The Base of This Business

Furthermore, investment advisor business activities are based on the trust of customers. So, in carrying out their actions, they must prioritize and protect the interests of their customers.

These interests must not conflict with the applicable laws and regulations and must avoid all actions that conflict with the customer’s interests.

As a party that clients or customers trust, investment advisors must honestly and correctly disclose material facts for customers to know about their professional abilities and financial condition.