Five key benefits of using an independent financial advisor

Financial advisor man

People sometimes think that financial advice is something that only the very affluent could need. That is not true though; even those with more modest incomes and plans can benefit from this kind of guidance.

A financial advisor in Shropshire or wherever you live can help you to grow your assets to become wealthier. He or she can identify investment opportunities, savings and tax breaks that will maximise your nest egg and secure your own future, as well as that of your family.

Read on to learn more about independent financial advice and how it can be of benefit to you.

What is an independent financial advisor?

The term ‘independent’ in this case has a number of meanings. The first is that such an advisor usually works for a small company rather than a larger one, or on a self-employed basis. Beyond that though, there are two distinct versions of a financial advisor: independent and restricted.

The difference between them is that an independent financial advisor (IFA) is trained to provide clients with unbiased advice concerning all types of financial products. By contrast, restricted advisors offer guidance only on specific types of products.

What are the benefits of using an independent advisor?

More comprehensive help

Most restricted advisors have one area that they are specialists in, and they will limit their advice to that. In some cases, this can be pensions and in others it will be investments, but they will not venture outside of that field. They also frequently advise clients solely on products that are provided by a small set of firms.

By contrast, an IFA will be able to provide advice on every kind of financial product on the market and is legally required to be unbiased at all times. Thus, choosing an independent advisor will allow you to benefit from every type of product that can potentially grow your assets.

Advice that is tailored

IFAs do not have direct connections to any investment products or financial companies, so they can offer advice customised to the specific needs of each client. The best way to set about growing your assets will depend on factors such as your current situation, risk tolerance and cash flow needs; having an advisor who is able to take those things into account when putting together a plan will be a big help.

A personalised relationship

The way an independent advisor will go about building an asset growth plan that fits your profile is by developing a close working relationship with you. He or she will get to know your situation and what your ambitions for the future are before starting to plan or invest.

That relationship will be an ongoing one, with regular meetings to discuss how the project is progressing. This will have the benefit of letting you adjust the plan as your circumstances or goals for the future change, or if particular investments are not paying off, rather than being stuck with it. It will also let a bond of trust and friendship build between you and your advisor.

Expert guidance

There are lots of people who will offer financial advice, but they are unlikely to produce the same results as an expert in the subject. A typical IFA will have comprehensive knowledge of the financial sector. He or she will be able to create an investment portfolio that encompasses multiple asset classes, to provide you with a good mix of high-risk/reward and low-risk/reward investments.

Such an advisor will also know the UK tax system inside out and be able to suggest ways of saving and investing that reduce things like inheritance tax liabilities without breaching the law.

Greater peace of mind

Talking to a financial advisor about what you hope to achieve and devising a plan together will give you clarity and peace of mind. Whether you want to plan for your retirement, set money aside for your family, grow your business, or all of these things, an independent advisor can help you to come up with a workable strategy.

This will take a lot of worry and strain off your shoulders by giving you a feeling of assurance about your future. Worrying about what will happen to you and your family financially down the line is a major cause of health problems, relationship breakdowns and other issues. This means working with an IFA can enable better physical and mental health, as well as assisting you in accomplishing your goals.

There are a lot of benefits to be derived from hiring an independent financial advisor for your personal or business finances. He or she will combine comprehensive expertise with the personal touch to create a custom plan that secures your financial future.

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