3 Differences BetweenYour Financial Advisor And An Investment AdvisorIt’s no secret: there are constant changes in the financialadvisory industryThere are more and more great opportunities that open up forsmall businesses.Thanks to technology and globalization, many SMEs haveaccess to the same investment advisors and funds as large companies.Because of this, many people confuse investment advisers withfinancial planning experts.Here we try to explainthe 3 biggest differences:1. Advisors only giveinvestment adviceIt sounds obvious, right? But you would be surprised to seehow many people believe that investment advisers also know financial planning.Some advisors do it without going into depth, although theydo not understand how to define budgets in my company.But planning requires much more knowledge in other areas,more experience and confidence of the general direction.
2. Investmentadvisors make 10 percent or less of what financial planners doGood planners focus on seven different thematic areas:1. Preparation of financial statements and analysisof cash flow and budget2.
Planning and management of risks and coverages3. Employee benefits planning4. Investment planning5. Tax planning6.
Retirement planning7. Patrimonial plan of company and partners 3. Customizefinancial planningBy asking some investment advisors questions to determinetheir risk tolerance, they place you in a portfolio that is identical or almostidentical to other cases they have already contributed to other clients.The planners (or financial advisor) with a longer-termobligation will do something similar for the investments, they also whollycustomize their business plan according to the objectives of the partners andeven thinking about how to reduce the financial risk.Whatever your ultimate image, your CFO will give youspecific and personalized advice, which will help you reach your goals in themost objective way possible.One way to close this explanation about the gap between aninvestment advisor and a financial planner we propose a simple exercise:If we offered the analysis of your finances and had todecide if you need advice on a pure investment or a broader plan to achieveyour goals smoothly, which one would you choose?
