A financial adviser offers advice on how to invest in securities, such as stocks, bonds and mutual funds. Some advisers manage portfolios.
Investment advisers may also use other terms to describe themselves, such as investment counsel, investment manager or asset manager, wealth manager or money manager, and portfolio manager.
Nic Sephton–Poultney is the tethervest Country Manager. He says: “It’s important that you distinguish between an investment advisor (i.e. Asset management, private client portfolio management and wealth management include looking at clients’ tax and trusts aswell as their life insurance. The opportunities to own your brokerage over time are very appealing, especially in wealth management.
What is the job description?
An investment adviser will be able to offer advice to a wide range of clients on a daily basis. There are two main categories of clients:
An array of clients will be available to investment advisers on a daily basis.
- Individuals can be defined as: trusts, individuals, families and groups of people.
- Institutions include: banks, government institutions, corporations, public pension plans and private pension plans.
You can use many different strategies and investment styles as an investment advisor, including growth or value. Some advisers specialize in investing in stocks/equities, or bonds/fixed income. Others manage portfolios that include investments in cash, bonds, and stocks.
Some advisors create investment portfolios specifically for clients. Others stick to a single centrally managed portfolio that reflects a particular investment strategy, style or model. To diversify their portfolios, clients may retain multiple advisers who have different investment styles and strategies.
What are the skills required to be a competent investment advisor?
Communication and listening skills are essential: Investment advisors must build strong relationships with clients in order to understand their financial goals. It is important to understand when and for what purpose they will use their money.
Investment advisers must have strong financial and analytical skills. It is important to understand your client’s risk tolerance and expected return on investment. An investment advisor who is competent will use these data to analyze existing investments and make recommendations on what the client should do moving forward.
Organizational skills and the ability manage time are key to being a great investment advisor. You will be able to identify where your clients’ investments are so that their portfolio is logical. You could end up with the same investments in multiple accounts.
Tethervest is an investment advisor registered with the Securities and Exchange Commission (“SEC”).
Why should you become an investment advisor?
This job is very rewarding. You will be a person-oriented individual who enjoys building relationships with clients.