subject: Searching For The Right Financial Services Provider [print this page] There are different types of financial services providers who will assist you when you invest your money. These providers went through a lot to learn the ropes of monetary services. They are educated to properly know how to help clients in handling their finances. The following are the three types of providers:
STOCKBROKERS
Their job is to help their clients invest as well as earn money. Stockbrokers purchase and sell securities for their clients. They develop investment plans that are based on the needs of the client. Records of investments are also maintained, they monitor transactions, and monetary reports. They mainly earn through commissions and your interests are always their priority. How they make money will depend on how good they are in making you rich.
Stockbrokers take into account your goals and give you information on stocks that might be profitable for you. They also gather information and provide you with a summary of their research and it will be up to you to invest or not. Though stockbrokers cant foresee the future, they can only be certain that you will profit from your investment.
INVESTMENT ADVISERS
These are either individuals or firms that manage financial investments. They evaluate their clients assets, economic goals and they give valuable advice on how to channel their clients money. These people will manage the investment portfolio of their clientele and work with stock brokerage firms to decide for the interest of their clientele. They have a trustee or fiduciary job just like stockbrokers. As a client you have the option to give them a discretionary authority that will allow them to trade for you without your permission or just hire them without allowing to trade without permission.
FINANCIAL PLANNER
A planner helps his clientele in planning long term economic goals. Since they have the knowledge about different economic products they can help through estate and tax planning, retirement savings, debt control and requirements for insurance. These plans can be complete from immediate income generation to planning for the long term. Planners do not have fiduciary responsibility but they do depend upon good reputation and recommendations from clients to make money for a living.
If it is for business, their job is to determine the resources to meet the companys operating program. They also forecast the extent in which the requirements will be met by the funds. It is their task to make the best plans get the needed funds. They also do the establishing and upkeep of systems of monetary control that governs the allocation and use of resources.
With financial planners it allows businesses and individuals to have control of their finances and get expert advice to manage properties like their homes, make decisions on policies for insurances and evaluate stock options
