Financial advisors can help their clients plan for both long and short term goals.

 

The financial advisor's role is to determine the clients' goals, weigh up the risk and then to recommend the appropriate investments.

 

If a client has short term goals, the financial adviser would normally recommend less volatile investments such as cash and bonds. These types of investment may have lower returns, but are less likely to lose the amount invested. This makes them an appropriate guard against capital loss. The investor must be careful that their value will not be eroded by inflation over a long period of time.

 

The longer time given to achieve the goal, the more the financial adviser would be able to experiment with more volatile investments. these have potentially greater risks and rewards.

 

Examples of these investments include investment in stocks and shares.