The Things Financial Consultants Do Not Want You to Know

Have you heard about people who work as financial planners? What about financial consultants? If these two terms are familiar to you, then you know they are people who work for investment firms. Investment firms usually earn their revenue by charging you fees and interest after they recommend specific plan of attack or investment product. By leveraging their expertise, you need not work and do your research yourself. But how true is the advice given by these investment firms? Are they solid and sound advises  Could they be deceiving you of your money and gaining on their self-interest only?

The problem with investment firms is that they often have conflict of interest. What is a conflict of interest? It happens when firms pay their salespeople (financial planners, brokers, consultants, etc.) on a commission basis. Therefore, the employees will always push for greater sales and not serving the best interest of the customers (maximizing profit for the particular customer).

You would want to avoid financial people who are involved in broker-dealer networks. Usually, they come from the same source of financial expertise.

Investment types are aplenty out there in the market. There are the bonds, stocks, money-market, mutual funds, options and futures, annuities, limited partnerships and so on. Salespeople often earn the largest percentage of commission from options and futures. How do you know a firm operates on a commission basis? Look for the prospectus and find a term called “load”. If the word “load” is present, it means some of your hard-earned money goes to the commission instead of going straight to your investment.

Beware of salespeople who do not reveal much about the company background, especially with terms like vice president or financial consultant. You have every right to be dubious when you find the investment sounds vague or unclear to you. Never give in to pressure created by the salesperson. You deserve to take all the time in the world to decide on a certain investment type.

You would want to obtain unbiased reviews and opinions on an investment product. Often times, the best in the market can be obtained for free-load (no commission).

Stockbrokers or financial consultant who sells investment products must be professional and responsible. They are largely accounted for giving sound advises to customers who need it. But in reality, most of them are abusing their positions to instill unnecessary fear and devising tedious strategy to boost their own sales.

Personal finance is very important, but you might want to know more on something else, security cameras.

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Roles and Responsibilities of a Financial Consultant

Being good with money is not enough to become an effective financial consultant.

A financial consultant, often called as financial advisor, is an individual who offers professional advice on money management. They serve individuals or organizations who are having issues with debt management, setting up their long term financial goals, developing a savings plan, and who are looking for sound investment advice.

They are also being sought for by couples who are leaning towards expanding their family. They will be asked about a good mortgage rate, when to save for retirement, and how to start a college fund. An effective financial consultant can offer sound advice on all these areas.

A great number of financial consultants work for companies and large organizations that are dealing with financial challenges. Consultants help these entities with their budgeting and debt management issues. Sometimes, they may also be called in to develop retirement and benefits plan for employees.

Individuals who would like to start a career in financial consulting must meet certain requirements. They must have a degree in finance and at least 10-15 years relevant experience. In addition, they must have attended relevant trainings and seminars. It would also be a big plus if they obtain certification from the Society of Financial Advisors.

Aspiring financial consultants can work for mortgage lenders, banks, or tax companies to get valuable experience in handling loans and special financial services. Through this, they’ll get a better understanding of various finance-related issues that they will most likely to deal with when they finally start a career in financial consulting.

Most financial consultants start by working for consulting and financial firms. The good thing about going this route is that these consultants don’t need to think about finding their clients and that they are guaranteed with paychecks every 15th and 30th of the month. In addition, they acquire valuable experience in their profession. They can use this when they decide to work for themselves.

Working as a freelance financial consultant can be extremely overwhelming, frustrating, but rewarding. Although individuals who choose to go this route will do virtually everything to bring in clients to make money, they can have themselves as their own boss and they will have direct control over their working hours. They can also possibly make more money as long as they are dedicated, determined, and motivated. These people can work from the comforts of their own home or can set up their own office.

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