There has never been a better time for good financial advice.
Why is it that although people have no compunction in seeking advice from doctors, dentists, lawyers, and other such professionals, when it comes to financial advisors, consideration would not appear to be that forthcoming. An IFA, or independent financial advisor is only approached when a savings plan or private pension plan is needed and it always seems to be at the last minute.
So what exactly is an Independent Financial Advisor then? Well, simply put, he or she is a person who works independently of the insurance companies, advising the best ways I which to deal with your individual financial situation. Now while it is true that it is a commission based job, independent means that he or she is not tied to any specific company. An IFA also has to put any advice that is given on record in writing and as such is held responsible for the advice given. With that in mind it is obviously in the IFAs best interest to give unbiased advice which can be clearly seen to be in the best interests of the client.
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.
All these facts lead a good advisor to the point that they are able to accurately advise you on the most appropriate products for your needs and your budget. At which point they are able to design a solution for you and go off and get quotes for the best products to fit your profile.
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.
Now with an ordinary financial advisor this would usually be the end of the process. The difference with an IFA is that they view it as being an ongoing process. This means that they will maintain contact with you in order to ensure that the plan is constantly working for you to the best financial ends. Remember that your situation will almost never remain constant and the role of an IFA will be to give you advice with regards to your plan and your changing situation.
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.
So what exactly is an Independent Financial Advisor then? Well, simply put, he or she is a person who works independently of the insurance companies, advising the best ways I which to deal with your individual financial situation. Now while it is true that it is a commission based job, independent means that he or she is not tied to any specific company. An IFA also has to put any advice that is given on record in writing and as such is held responsible for the advice given. With that in mind it is obviously in the IFAs best interest to give unbiased advice which can be clearly seen to be in the best interests of the client.
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.
All these facts lead a good advisor to the point that they are able to accurately advise you on the most appropriate products for your needs and your budget. At which point they are able to design a solution for you and go off and get quotes for the best products to fit your profile.
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.
Now with an ordinary financial advisor this would usually be the end of the process. The difference with an IFA is that they view it as being an ongoing process. This means that they will maintain contact with you in order to ensure that the plan is constantly working for you to the best financial ends. Remember that your situation will almost never remain constant and the role of an IFA will be to give you advice with regards to your plan and your changing situation.
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.
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11:19 AM
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