How Does A Bank Financial Advisor Formulate Recommendations?

A bank financial advisor, much like any other financial advisor, provides advice and recommendations to their clients regarding their financial plan. It is the role of the advisor to provide information, gather data, formulate financial strategies and make recommendations to their clients based on their needs, goals and objectives. The process that goes into formulated financial recommendations to a client involves creating a financial plan, analyzing financial goals and objectives and making suitable recommendations. Each of these actions are discussed below.

Create a Financial Plan
In order to determine the best course of action for a client to pursue relative to their financial situation, a bank financial advisor meets with their client to gather information. The information provided by the client includes investment holdings, savings, income, tax information and other items that are important for the financial advisor to know. It is with this information that the financial advisor can create a financial plan to present to the client with appropriate recommendations.

Analyze Client’s Goals and Objectives
During the process of information gathering and data analysis, the bank financial advisor discusses with the client their financial goals and objectives. Financial goals include wanting to buy a house in 5 years, or send a child to college at age 18. Goals may also include a desire to leave your family debt-free in the event of your premature death or retire comfortably at age 60. Financial goals can be considered to be the things we want to have happen as a result of planning.

Financial objectives are the ways in which we meet our goals. These include appreciation of capital, long-term growth, need for income and safety of principal. The advisor must take these factors in consideration in order to custom tailor the financial plan.

Create a Model Portfolio Suitable for Client’s Needs
Any recommendation that a bank financial advisor makes to a client should be based on the following factors:

    * The client’s age and lifestyle.
    * The level of experience the client has with investing.
    * The client’s current financial situation.
    * The source of current and future income for the client.
    * The level of risk tolerance the client has for certain investing strategies.
    * The client’s tax bracket.
    * The financial needs of the client.

Because every person’s situation, goals and objectives are unique, a bank financial advisor cannot take a boilerplate or one-size-fits all approach to planning. Through experience, a financial planner asks questions and analyzes data in order to make the right recommendation that helps the client reach the goals.

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