How can a financial planner manages your wealth?

Financial advisors are like doctors, however for your money. They help you make good financial decisions and offer advice on the best way to save more money. But just what is their job description?

In regards to saving money, most people believe they can manage without any outside assistance or guidance -- in the end, aren't we smart enough to handle our personal finances?

Unfortunately, most of us have now been led astray by decades of misleading media coverage about personal finance. We've heard so much wrong information over the years that even basic questions such as for instance "what's an investment?" or "how can I start investing?" seem too complicated to tackle alone.

That's where professional financial planners enter into play. These experts use advanced knowledge and expertise from multiple fields to steer clients through complex financial situations. The end result is usually better outcomes than if the client had attempted to navigate these waters on his/her own.

For example, somebody who has never owned stocks before may be able to learn some basics of investing online, but will likely fail at actually picking stock prices themselves. On another hand, a qualified expert with access to advertise data could pick stocks that meet specific criteria (e.g., companies trading under $5 per share) while avoiding others that don't fit those guidelines.

But what precisely does this person do? How did he become qualified to earn the title "financial planner" anyway? And why should anyone listen to him above regular old investors? Let me explain...

A Brief History of Personal Finance Professionals
The initial known mention of a personal-finance professional dates back to ancient Greece. Back then, wealthy families would hire assistants called oikonomoi ("house managers") whose sole purpose was to manage the family economy. In modern times, these oikonomoi stumbled on represent the very earliest kind of insurance agents. Another early type of financial advisor were estate attorneys, who helped plan out wills and estates based on local customs. This eventually evolved into today's Certified Public Accounts (CPAs), also referred to as accountants.

Fast forward several centuries later, and we find ourselves in another era of massive change as it pertains to handling one's money. With the advent of the Industrial Revolution and its associated advancements brought forth new methods for managing money. People began building large fortunes by using newer technologies, including mass production techniques, transportation networks, and global trade channels. As time went on, these trends became institutionalized within various industries and organizations. Over the past 100+ years, the planet has seen significant growth in the amount of kinds of folks who now provide services related to money management, including:

Bankers - in charge of processing loans and mortgages
Insurance Agents - responsible for helping customers purchase life, health, car, house, etc. policies
Retail Salespeople - sales associates in retail establishments
Stock Brokers - brokers who buy and sell shares of company stock
Investment Banker - bankers who specialize in investments
Personal Assistants - secretaries hired to organize appointments, meetings, travel plans, etc.

Of course, there are countless other professions which fall beneath the umbrella term "professional financial adviser." Examples include: bank card issuers, mortgage lenders, tax preparers, realtors, and lawyers. Many of these groups deal directly with consumers' needs regarding certain facets of finance. However, none of them possess formal training in financial planning itself. Instead, each group seeks to use their own pair of skills to solving problems related to money.


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