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The first thing a person tends to do when you need advice on finance is to go to an adviser to a bank, an insurance agent and, perhaps as a third option, a stockbroker. These have been for decades the most widely used financial guidelines. The most traditional marketers of the products of the companies they work for and maintaining a dual role: firstly, advise the customer, other charge for selling financial products offered by your firm.

The next thing would be that, when in doubt that the traditional consultant an independent opinion, is go to the counter, a friend, a relative or an acquaintance who understands or has had experience in the field of finance. Although in this case is sure to be closer view, is no guarantee of competence and professionalism in counseling.

Due to regulatory and technological advances, there is a space which is developing a new model adviser who is growing again. We’re talking about a person you trust as your friend count. The difference is that in turn is a qualified professional in the personal and family finances, personal financial advisor.

The main difference between traditional and personal advisor or independent is that the former focuses on the product and the needs of the supplier, while the second focuses on customer needs regardless of where you get the financial products and services.

What are personal or family finances?

It is important to clarify this point as the independent financial adviser plays a bigger role than people think.

When you hear the phrase personal finances first thing that comes to mind words like “economy”, “Bag”, “Wall Street,” “bonds,” “investments”, “savings”, “safe”, “credits” “debts” or “banks” and other odds and ends. The truth is that personal or family finances are this and more.

The finances of a person or family are a means to an end. People have dreams, goals and ideals that they would like to meet. The first thing that comes up is pay for the education of children. Then comes the time of retirement, retire with a lifestyle defined. Then there are some desired tastes both in activity in retired status: travel, consumption, or live in the neighborhood of pleasure. This ultimately is what is known as a “life plan”, a set of very personal goals and dreams.

With that said you can deduce that personal or family finances are:

1) All a person has: cash, investments in stocks, bonds, funds and time deposits. There are also real estate such as apartments, houses, housing or commercial premises. Finally, if any, may be a family business and other items that make up the assets of a person or family.

2) Less everything one must: personal loans, credit cards, mortgages, debts with friends or relatives and any other type of liability.

3) Over all income: wages, fees, rents collected, interest, dividends, capital gains, sales of services and even incomes of both spouses if any.

4) less all expenses, living expenses, rental payments, educational expenses, taxes, trusts, domestic workers, non-recurring expenses (gifts, buildings), purchase of major assets (cars, etc.).

What does a financial advisor?

This type of counselor works with the client regardless of where you have your savings or financial institutions with which it works.

Works with the client about their financial and nonfinancial assets, your income and expenses.

Takes a holistic view of finance and investment of the client. Work based on plans that are logical and organized special methods for personal or family finances.

Work with other professional providers such as the client’s accountant, lawyer or notary public as appropriate.

May have agreements with suppliers if the client prefers to pay for services that way, but this obviously takes away independence, or if does not charge a fee for advice to the client directly. This return can be calculated to a value for time worked, as a percentage of equity on which it provides advice or a fixed value if it is time jobs.

How is the service of an independent financial adviser?

The independent financial advisor works primarily on the basis of plans. There are several types of plans as the objective is to meet the client.

Here are three top financial advice:

If you require purely financial investment advice, the advisor prepares an “Investment Plan”.
If the client needs estate planning then analyzed the assets in question, ownership, jurisdiction, applicable law and other aspects, for which the consultant prepares a “Heritage Plan.”
If the client needs to minimize taxes or to sort out some aspect of your estate tax or income, financial advisor prepares a “Tax Plan.”

Sometimes clients are reluctant to insure their property or have a contingency plan in case of disability or death. In this case the consultant prepares a Risk Plan which looks at whether the client is over or under insured.

To meet future targets for short, medium or long term, the independent financial adviser helps the clients to prepare their State Property and projected cash flow. For the preparation of these reports are considered: income and expenditure flows, ordinary and extraordinary adjustments to the projections for inflation, interest rates or exchange differences should be working with different currencies.

The Financial Plan: the integral form of work

It is quite normal for clients independent financial adviser with multiple needs. For that there is a financial plan.

The Financial Plan integrates in a logical, orderly and plans modules described in the previous section. In this way the customer, then the planning process, complete with a work order that can be used even for many years.

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