Sasha Jacob - 4 Types of Financial Advisors and Their Function

Financial management, as most of us have come to experience, is not an easy task. Often, the complexity of it all makes us resort to hiring a financial advisor. Before getting into business with a financial advisor, how would you know if you’ve found the right one?

There are four types of financial advisors according to Sasha Jacob and each one of them has their corresponding specialties. In relation to this, finding the one that suits your financial circumstances would more likely end in better results.

Sasha Jacob enumerates the four types of financial advisors

1. Brokers/ Insurance Agents

A broker or an insurance agent can work as an individual or as a company. They act as the negotiator between the securities and investors. It is primarily their job to arrange the transactions between the buyer and the seller and is also known as full-service brokers or discount brokers.

They provide a wide variety of financial services, including personalized retirement plans and tax tips specifically for your current financial circumstances. They are known to be less expensive but have not provided financial advice. In the recent years, however, more and more brokers have started offering data analysis software and research reports to help investors.

2. Investment Advisors

The second type is the investment advisors. They provide information about securities to educate their clients and, if properly credentialed, some of them may also trade securities or manager portfolios. Investment advisors have an additional fiduciary responsibility to their clients and are required to act in their best interest. They may be paid through an hourly fee, a fixed rate, or a percentage. Sasha Jacob financial advisory firm worked with small to middle-market companies in the Canadian renewable energy sector.

3. Accountant

Accountants work to advise individuals and companies on their tax issues. This also includes reporting and audits. It is also their job to prepare your return for you. Some Certified Public Accountants are certified as Personal Financial Specialists and would help their clients with overall financial planning may it be for a company or for individual/personal purposes. Accountants can be paid on a fixed rate or through regular salaries.

4. Financial Planner

Probably the most popular among the four types is the financial planner. They layout or create specific programs for each of their clients based on their current financial situations and future goals. They may each have different specializations and caters to both companies and individuals. They are also similar to investment advisors because both have fiduciary responsibilities to their clients.

In conclusion, whatever your financial situation may be, there is certainly a financial advisor that can cater to all your needs. Although some people may go on through life without a financial advisor, it is still highly recommended to hire one especially when you find yourself in a rather difficult situation. If you have already found an advisor best suited to you, make sure that he/she is properly credentialed and that he represents a reputable company. Sasha Jacob Capital Management Inc hopes that this new information can help you make wiser decisions in choosing the most suitable financial advisor for you.