Now is by far the best time for good financial advice.
We tend to turn to professionals when it comes to needing advice with important things in life, such as doctors, dentists, accountants and the like. However a lot of us can be reluctant when it comes to seeking financial advice. People only use an independent financial advisor, or IFA, when they need something, and don't generally ask for their advice or expertise beforehand.
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.
So what is it that Independent Financial Advisors give advice on then? Well basically any product within the financial market. That is to say, mortgages, life insurance, private pensions, savings plans. Some also deal with will writing and inheritance tax planning.
You may be asking yourself, "Well, all these services can be acquired anywhere on the high street, so why should I go to the bother of hiring an IFA?". The reason is that IFAs are not sales people. You don't just ask them to sell you life insurance, for example. In approaching an IFA you will be asking them if you need life insurance at all, and if so, which is the best option available to you.
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.
Then they will look at your future financial aspirations. They will ask you about the quality of life you would like in the years to come. Maybe you would like to retire earlier in life, get sickness coverage to cover future events or pay your mortgage off before the term stated.
By asking all of these questions, an IFA is then able to ascertain what you need and what sort of budget you have available in order to achieve it. They can then create a personal profile and use it to go away and source what financial services best fit your needs and budget.
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 to summarise an independent financial advisors job entails gathering information about you and researching the best products for you then sitting down with you to ensure that you know exactly what you have and what they propose and then carrying out regular reviews to ensure that the advice stays current and relevant. So I think you will agree they are worth their weight in gold, especially in these financial times when we should all be reviewing what we have and most of all why we have it.
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.
So what is it that Independent Financial Advisors give advice on then? Well basically any product within the financial market. That is to say, mortgages, life insurance, private pensions, savings plans. Some also deal with will writing and inheritance tax planning.
You may be asking yourself, "Well, all these services can be acquired anywhere on the high street, so why should I go to the bother of hiring an IFA?". The reason is that IFAs are not sales people. You don't just ask them to sell you life insurance, for example. In approaching an IFA you will be asking them if you need life insurance at all, and if so, which is the best option available to you.
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.
Then they will look at your future financial aspirations. They will ask you about the quality of life you would like in the years to come. Maybe you would like to retire earlier in life, get sickness coverage to cover future events or pay your mortgage off before the term stated.
By asking all of these questions, an IFA is then able to ascertain what you need and what sort of budget you have available in order to achieve it. They can then create a personal profile and use it to go away and source what financial services best fit your needs and budget.
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 to summarise an independent financial advisors job entails gathering information about you and researching the best products for you then sitting down with you to ensure that you know exactly what you have and what they propose and then carrying out regular reviews to ensure that the advice stays current and relevant. So I think you will agree they are worth their weight in gold, especially in these financial times when we should all be reviewing what we have and most of all why we have it.
About the Author:
Quality financial advisors can be difficult to come by so why not come along to Invest & Protect ltd we are specialists in offering independent financial advisors.
posted by Credit Counseling at
3:11 PM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home