What is the role of a financial advisor?

Do you have questions about saving and financial planning? No matter how much research you've done, numbers just aren't your thing? A financial advisor can help you make sense of it all.

Also known as financial security advisors and group savings advisors, financial advisors are financial professionals. But what do they do? What services do they provide? We explain the most important facets of the profession.

Financial advisor or financial planner?

Often associated with a financial planner, a financial advisor can work for a bank or be self-employed. The main difference between these two professionals is the title they carry. In Quebec specifically, the title "financial planner" is reserved for professionals authorized by the Autorité des marchés financiers (AMF).

University education to become a financial planner

To become a financial planner, candidates must obtain a university degree in financial planning. This is followed by the IQPF professional training course, which is offered in French or English.

Only upon successful completion of the course can the candidate obtain the AMF representative certificate and practice as a financial planner (F.Pl.).

What does a financial advisor do?

A financial advisor has a wide range of responsibilities to help and support his or her clients in their life projects. Here's an overview of the different roles they play.

Assessing your current financial situation

Are your savings outpacing your efforts? Having trouble creating a realistic budget? Wondering where your money is going? A financial advisor can help you analyze your current financial situation and make recommendations tailored to your needs.

During a meeting with your advisor, he or she can review a breakdown of your assets and liabilities. Based on your current and future financial needs and goals, he or she can suggest an action plan to optimize your income, expenses and savings.

This will make it easier for you to accomplish the projects that are important to you, whether it's paying off student debt, starting a family or planning for retirement.

A good advisor will give you unbiased advice to help you make all of your financial decisions. He or she is an excellent resource for taking the pulse of your current and future finances.

Advising you on the financial products that are right for you

Do you want to invest but have a low-risk tolerance? Do you want to invest your money but don't know where to start? Do you feel dizzy learning about too many financial options? Once you've taken stock of your finances, an advisor can work with you to help you choose your investments and different banking products.

Your advisor will listen to your goals and provide you with personalized service. Depending on your situation, plans, investor profile and risk tolerance, he or she can guide you to the most appropriate products.

RRSP, TFSA, RESP, stock market investments... An experienced advisor can help you determine the best savings plan for your money and recommend different investment sources to help it grow. He or she can also provide personalized advice on how to manage your portfolio and make tax-efficient choices.

Regular monitoring of your investments

In addition to creating a financial strategy for your investments and savings, a financial advisor will monitor your investments regularly.

This professional will periodically review your portfolio to ensure its performance. He or she stays abreast of developments in the financial markets and major investment products to advise clients and help them adjust their financial strategy.

If necessary, he or she can also introduce you to new investment opportunities that are better suited to your changing situation. In this way, he accompanies you over time and helps you stay on track with your goals, whatever they may be.

In fact, it's important to review your financial plan and goals with your advisor regularly to make sure you're staying on track.

When should you talk to a financial advisor?

There is no good or bad time to consult a financial advisor. There are many occasions when you may want to meet with this professional to discuss your finances.

Have you just graduated from college? An advisor can help you develop an initial investment strategy and provide valuable advice on managing a budget.

Planning to buy a home? It can be a good idea to get advice on managing your finances and saving enough for a down payment.

Are you nearing retirement? Working with your advisor will give you an overview of your accumulated savings. You'll be able to make adjustments more easily.

A marriage, divorce, birth, health issue or other personal situation has turned your life upside down? These are all good reasons to hire a financial advisor or planner!

How do you choose a good financial advisor?

Now that we've covered the role of this professional, how do you find the right one for you? Because, no, not all financial advisors are created equal! Expertise, training and qualifications can vary from one person to another.

Don't hesitate to compare several professionals. Ask questions to find out about their experience, working methods and compensation. You can even ask your family and friends if they have a name to recommend.

It's possible to check whether a financial advisor or his or her firm is registered with a regulatory body. Use the National Registration Search.

In Quebec, you can also check with the Autorité des marchés financiers to see if the professional you are considering doing business with has ever been the subject of a complaint or disciplinary action.

Once you've asked your questions and done your due diligence, it will be much easier to determine which professional you can trust to help you manage your finances.

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