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.
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.
So what exactly can these independent financial advisors offer? Well, they can offer almost all financial products on the market such as life insurance, pensions, savings plans, investments and of course mortgages. Some advisors have additional services such as inheritance tax planning and will writing services.
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.
They will then come back to you and see if you think that the solutions fit your purposes. If you are happy with their proposals then they can proceed to put the financial plan in place for you.
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.
So it can be seen that the role of an Independent Financial Advisor is one that is vitally important with your regards to your financial wellbeing. They assess where you are financially, structure a plan to best suit your needs, source the products that best suit you financially, and are on hand in the future if you need to reevaluate your position due to changes in circumstances both personally and in general. You have to agree that this is the sort of professional advice that is well worth seeking out. - 16036
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.
So what exactly can these independent financial advisors offer? Well, they can offer almost all financial products on the market such as life insurance, pensions, savings plans, investments and of course mortgages. Some advisors have additional services such as inheritance tax planning and will writing services.
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.
They will then come back to you and see if you think that the solutions fit your purposes. If you are happy with their proposals then they can proceed to put the financial plan in place for you.
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.
So it can be seen that the role of an Independent Financial Advisor is one that is vitally important with your regards to your financial wellbeing. They assess where you are financially, structure a plan to best suit your needs, source the products that best suit you financially, and are on hand in the future if you need to reevaluate your position due to changes in circumstances both personally and in general. You have to agree that this is the sort of professional advice that is well worth seeking out. - 16036
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