People often use dentists, accountants, solicitors and other professionals, but it has to be said that the majority don't go out seeking advice from a financial advisor. Most people leave talking to an IFA, an independent financial advisor, till the day they think they actually need something, such as a mortgage life insurance pension or savings plan.
In case you don't already know, an independent financial advisor is someone who can advise you on financial issues but works independently of all financial organizations and institutions. They are employed by you, the customer. Although they often work on commission, this does not affect the advice they give you as they are obliged to give you the best advice for your particular situation. Furthermore, they must provide the justification for their advice in writing so that you can see and prove why it is that they have advised you in the way that they have. Inappropriate advice is very hard to give when it has to be documented in this way.
Financial advisors can generally offer you any financial service available on the market. This will encompass life insurance, savings plans, pensions, mortgages and personal investments. Some can also offer you extras such as inheritance tax planning and will writing.
Now that's all well and good, I hear you say, but can I not get these products by simply taking a stroll down the high street on any given day. Yes you can, but the big difference is that an Independent Financial Advisor does not just sell these products. The companies sell the products, as such. If you require life insurance they will sell you life insurance but an IFA is there to advise you whether you actually require life insurance in the first place.
A financial advisors process will involve sitting down with you for a couple of hours going through all the things you currently have such as the policies that you already pay into. They will asses your attitude to risk which means they will establish how much risk you are prepared to associate with particular areas or you financial planning. They will also establish what you can afford and how much money you are prepared to commit to dealing with any particular need you may have.
They will also find out what you want from your future financial planning, this will include questions such as when do you want to retire how long do you want to pay your mortgage for and do you want to protect yourself in the event of sickness etc.
By doing this they can build a personal profile of where you are and where you would like to be financially. Armed with this information they can then go and find the products on the market that will be of best value and benefit for you and your budget.
Once they have done this they are then in a position to sit with you again and go through their proposals for you and if they are acceptable to you they can move it all forward and make applications on your behalf.
You may think that this is the end of the process, but you would be wrong. It is also the job of an independent financial advisor to keep in contact with you every year to make sure that the services you have are still what you need. Circumstances change, and in doing so, the type of financial cover you have will also naturally shift. It is important to have a financial health check every so often to make sure you are properly protected.
In conclusion, the role of an IFA is to pick through every aspect of your financial situation, budget and requirements in order to correctly advise you on what financial services would be beneficial to you. They then source and facilitate these services. It is then their job to monitor your situation to ensure that should your finances change, your financial protection will change accordingly where required. In these troubled times, you can see why now is the best time to seek expert help when it comes to controlling, and protecting, our finances. - 15465
In case you don't already know, an independent financial advisor is someone who can advise you on financial issues but works independently of all financial organizations and institutions. They are employed by you, the customer. Although they often work on commission, this does not affect the advice they give you as they are obliged to give you the best advice for your particular situation. Furthermore, they must provide the justification for their advice in writing so that you can see and prove why it is that they have advised you in the way that they have. Inappropriate advice is very hard to give when it has to be documented in this way.
Financial advisors can generally offer you any financial service available on the market. This will encompass life insurance, savings plans, pensions, mortgages and personal investments. Some can also offer you extras such as inheritance tax planning and will writing.
Now that's all well and good, I hear you say, but can I not get these products by simply taking a stroll down the high street on any given day. Yes you can, but the big difference is that an Independent Financial Advisor does not just sell these products. The companies sell the products, as such. If you require life insurance they will sell you life insurance but an IFA is there to advise you whether you actually require life insurance in the first place.
A financial advisors process will involve sitting down with you for a couple of hours going through all the things you currently have such as the policies that you already pay into. They will asses your attitude to risk which means they will establish how much risk you are prepared to associate with particular areas or you financial planning. They will also establish what you can afford and how much money you are prepared to commit to dealing with any particular need you may have.
They will also find out what you want from your future financial planning, this will include questions such as when do you want to retire how long do you want to pay your mortgage for and do you want to protect yourself in the event of sickness etc.
By doing this they can build a personal profile of where you are and where you would like to be financially. Armed with this information they can then go and find the products on the market that will be of best value and benefit for you and your budget.
Once they have done this they are then in a position to sit with you again and go through their proposals for you and if they are acceptable to you they can move it all forward and make applications on your behalf.
You may think that this is the end of the process, but you would be wrong. It is also the job of an independent financial advisor to keep in contact with you every year to make sure that the services you have are still what you need. Circumstances change, and in doing so, the type of financial cover you have will also naturally shift. It is important to have a financial health check every so often to make sure you are properly protected.
In conclusion, the role of an IFA is to pick through every aspect of your financial situation, budget and requirements in order to correctly advise you on what financial services would be beneficial to you. They then source and facilitate these services. It is then their job to monitor your situation to ensure that should your finances change, your financial protection will change accordingly where required. In these troubled times, you can see why now is the best time to seek expert help when it comes to controlling, and protecting, our finances. - 15465
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