jenis Obligasi
22 Feb 2023

Before Bonds Investment: 5 Tips to Choose Financial Advisor

Before making an investment, such as investing in Bonds type, to ensure smooth processes and avoid missteps, you need to have a financial advisor.

The presence of a financial advisor, as the name implies, has a very important role. Because it can help you make the right decisions regarding finances, including when you want to make an investment.

That’s why this article will explain all about about financial advisors, starting from the benefits to tips on choosing the right financial advisor.

But before moving on, it's a good idea to know in advance about the concept of a financial advisor which will be explained in this article.

What is a Financial Advisor?

Financial advisors are individuals who have a profession with the task of providing information services and procedures regarding finance, including insurance plans and investments.

Based on this concept, it can be concluded that a financial advisor has a duty of giving advice regarding a person's financial condition and strategy.

With this profession, a financial advisor also has the responsibility to educate and provide recommendations about financial services and products that are needed by an individual.

Individuals who have worked with financial advisors can use their services to consult on issues and financial goals they want to achieve.

Benefits of Having a Financial Advisor

After understanding the concept of a financial advisor, then you also need to know the benefits of working with them. Apart from being able to help you take the right steps regarding finances, the following explanation will let you know the benefits of having a financial advisor.

The benefits that you can experience by having a financial advisor include:

  • Have an Expert and Trusted Discussion Partner

As explained in the concept of a financial advisor, by owning or working with a financial advisor, you will have a partner to discuss financial matters with.

In addition, financial discussions with financial advisors are also more reliable because they are experts in their fields.

  • Have Information Sources Related to Financial Services and Products

The second benefit of having a financial advisor is that you have a source of information regarding financial services and products.

That way, you can stay updated about products and services that are trending or are most in demand by the public.

At this point, you will usually be guided and informed about calculations if you have an interest in a financial product or service.

  • Knowing Various Financial Instruments and Their Risks

Next, together with a financial advisor, you will be informed about the various financial instruments.

It doesn't stop there, the financial advisor will also explain the advantages and disadvantages as well as the risks that may occur as a result of this financial instrument.

  • Easy Financial Planning

The most common benefit of having a financial advisor is that it makes it easier for you to make financial plans.

This financial planning has goals that can help you manage your finances to become more organized.

Financial advisors will usually provide education about finance and this can be used as a first step until later you can strategize your own financial plan.

  • Gain Solutions of Financial Problems

Financial conditions are not always at a comfortable point. Nowadays, financial problems can happen anytime, on top of the needs that are increasing over time.

By having a financial advisor, you can consult and find the most suitable solution for any financial problems.

  • Get Advice Regarding the Most Suitable Investment

Then if you are interested in saving and investing, asking the financial advisor directly can be the right way.

Not only will you be informed about various investment instruments, but you will also be given recommendations and guided in choosing the steps that are the safest for your financial condition during the investment process.

  • Get Financial Behavior Management Assistance

Everyone has different financial behaviors. In this case, a financial advisor can help you behave or act according to your financial conditions.

This financial behavior management assistance, for example, makes you save more often and not wasteful or too consumptive.

Another example of financial management is an extravagant person will be asked to make financial planning so that later it will not result in worrying financial conditions.

How to Choose a Financial Advisor Before Investing

After knowing the attractive benefits of having a financial advisor, then you also need to know the methods or tips in choosing them.

Because of the important role and will be trusted with your financial condition, you need to find the right and reliable person.

You need to sort through and explore the background of a financial advisor so you can find out that their performance in carrying out their duties has never deviated.

For this reason, the next section will provide an explanation regarding 4 ways that you should pay attention to in choosing the right person to help you manage your finances. So, what are these methods? Below are the explanations:

  • Confirm Your Needs

The first way to pay attention to when choosing a financial advisor is to determine your own needs for this financial advisor.

Even though it has a myriad of beneficial benefits, you also need to consider the actual level of necessity.

If considerations show that you need a financial advisor, then you need to start choosing the right person.

However, if the results of your considerations do not require a financial advisor, then you only need to learn little by little regarding proper financial management on a self-taught basis.

  • Check Certification

Next, once you have decided that you need a financial advisor, you need to start looking for and choosing the right one.

Because fraud is very common nowadays, in the process of finding and selecting a financial advisor, you need to check their certification and make sure that the certification is genuine instead of a fake.

There are certifications that a financial advisor should have, including a certification showing the title Certified Financial Planner aka CFP.

This is one of the best certifications. If your prospective financial advisor already has this certification, then that person usually has attended training, has experience, and is bound by a certain code of ethics in carrying out their duties.

Apart from the CFP certification, several other certifications that your prospective financial advisor may have include CFA, CPA, CIMA certification, and many examples of other certifications.

From this point, it can be concluded that it is important for a financial advisor to have expertise that has been tested for proficiency, as evidenced by the certification held by the financial advisor.

  • Check Track Records

After examining the certification of a financial advisor, you also need to check the track record or previous career experience of each candidate.

The track record of a financial advisor is important to consider before contacting them to work together.

By looking at previous career experiences, you can assess whether the candidate has good performance and so on.

Furthermore, by examining their work track record, you can also find out whether the candidate has a way of working that matches what you need by looking at their previous financial planning projects.

  • Match the Services

Each financial advisor offers different frameworks and services. Therefore, you need to match the services you require with the services offered by each prospective financial advisor.

There are at least two services offered by financial advisors, namely:

○ Comprehensive Consulting Service

This service, as the name implies, is a comprehensive consultation regarding financial conditions. In this service you can also ask for recommendations regarding the next financial steps that should be taken.

○ Asset Management Services

In this service you can ask for help to manage your financial condition and assets for a longer duration.

Apart from that, you will usually be given various recommendations and financial advices that you can do.

  • Avoid a Financial Advisor with a Conflict of Interest

So that the consulting process is smooth and focused, it is better for you to avoid choosing a financial advisor who has a conflict of interest, such as being tied to a certain company.

Because if a financial advisor has an attachment to a company, the consulting process might not be optimal because the financial advisor may focus on promoting the company's products.

Interested in Investing? Try Bond Type Instruments

Managing one's finances can be done by starting to invest. For those of you who are interested in investing, you can try Bond investment instruments.

This instrument consists of two types which are divided based on the Bond issuer, namely Corporate Bonds and Government Bonds. As a recommendation, you can invest in Government Bonds together with the right partner, namely priority banking DBS Treasures.

To know more about DBS Treasures, you need to know in advance about the advantages that are offered. What are the advantages of DBS Treasures?

  • You will gain income from coupons which are paid regularly
  • There is potential for capital gains
  • You will be offered competitively priced coupons
  • You will not be charged extra
  • Bond transactions can be carried out and monitored 24/7 via the digibank by DBS Application
  • Gain insights from experts according to market data analysis and risk profiles, so you can invest confidently at the right time

The advantages when investing with DBS Treasures are very interesting, right? If you are interested in starting a Government Bond type investment with DBS Treasures, then you can access comprehensive information via this link https://www.dbs.id/id/treasures/investasi/structured-product/investing-in-bonds.