There are many different specialists in the field of finance. Each of them has its own particularities, a specific level of education, areas of expertise and, above all, distinctive tasks. In the “advisory services” category, many people tend to confuse financial advisors with independent financial advisors. Both are considered to be advisors and providers of investment products for the better management of one’s assets. As a result, they are often called upon before investing their money, to make their savings grow or for simple tax optimization. And yet there are significant differences between the two professions.
In order to choose between a financial advisor and an independent financial security advisor, it is important to first understand the differences between them and the areas in which they both work. Inevitably, this involves the definition:
The profession of financial adviser is also a generic term that encompasses different realities.
The classic financial advisor:
The financial adviser is a profession that is generally practiced with banks, or with any other financial institution.
What is his role with companies and clients? As a financial advisor, he assists individuals and professionals in the management of their financial assets.
To achieve this objective, his work can be divided into several parts.
But in most cases, it boils down to recommendations and advice on financial investments and the proper management of client portfolios.
In view of his role within a company or entity, he is also required to sell and/or offer the financial products of this same company.
He may also be required to negotiate bank rates and transactions.
The financial security advisor :
The financial security advisor differs from traditional advisors in that most of the time he or she works independently or within a financial group that is itself independent. Their role is, of course, to advise you on how to properly manage your money, your investments, and your taxes, but because of their independence, they act more like brokers, offering you the best investments on the market. Unlike a financial adviser working in a bank, he will not try to sell you the bank’s investments but, on the contrary, will only offer you the financial investments best suited to your profile. While financial security advisors are qualified and registered with the AMF, some, like the President of Signature Financier Groupe, Louis-Xavier Savard, go further. Indeed, he has completed his curriculum with the qualification of “mutual fund broker” but also by obtaining the “exempt market” permit, which allows him to offer alternative financial products.
With a good Montreal financial security advisor, you also have direct access to certain investment funds, as well as the opportunity to access alternative investments on the exempt market.
The financial security advisor
As you will have understood from his name, the financial security advisor bases his activity on “some financial planning, but it is mainly based on complex and personalized investment strategies that can in some cases multiply your capital by 4. What does this consist of? Establishing a profile of an individual’s or professional’s current situation, their financial objectives and the various steps that must be taken to reach this desired situation. To do this, it is important to take into account several elements, including :
- Legal aspects
- Family situation
- The current state of the heritage
- Pension plans
Financial Advisor and Financial Security Advisor: The Differences
By these simple definitions, you can understand that the financial advisor and the financial security advisor all work in the financial field in order to offer better tax optimization. Nevertheless, there are key differences between the two professions. Indeed, the financial advisor helps manage money with tools and products internal to his bank or financial institution. While the financial security advisor makes plans to help you achieve your long-term financial goals.