Anyone facing big and complex decisions concerning their monetary assets will, at some point, require solid financial advice.
Such decisions can be life-changing, and getting the right counsel is vitally important in helping you along your financial journey.
In this guide to financial advisers, we offer some useful tips on why you should reach out, when you should reach out, and who you should reach out to.
What do financial advisers do?
It is first of all worth considering what a financial adviser is and what they do.
Before engaging their services, you should be sure they have a qualification recognised by the Financial Conduct Authority (FCA) and have completed a Level 4 diploma – the absolute minimum standard for dispensing professional advice.
They will usually offer a broad range of products and services, designed to assist you with your unique financial needs at different points in your life. These include guidance on savings, investments, pensions, mortgages, insurance, equity release, retirement, tax and property planning and family finances.
Your first meeting will involve some form of ‘fact find’, in which they identify your individual circumstances, gaining a better understanding of your current financial situation and goals. There will also be a discussion about your appetite for risk with investments.
With all of this information, then can formulate a plan that works for you moving forward. Many financial advisers offer a first consultation for free. If you’re unsure whether you need advice, you can book an appointment to see how they can help you. Advisers should be transparent at all times about fees.
How do I know if I need a financial adviser?
The decision on whether to hire a financial adviser is a personal one, which will invariably depend on whether you feel comfortable managing and planning your finances without external support.
Seeking professional financial advice can be a good investment in itself if you are looking to clarify complex financial options. If this involves life-changing decisions, it can be hard doing it yourself, or relying on untrained or biased family opinion – especially when there are so many factors and variables to consider.
The chances are that most people will require financial advice or coaching at least once over the course of their lives, and many build up an ongoing and invaluable relationship with their advisers. This might cover milestones such as a new home, or planning for retirement – the kind of events one personally has zero to little experience to base decisions on.
It is crucial you are able to determine if you afford to lose money going alone, whether you have the time to put into research, if you have investment nous, and whether you able to regularly review your finances, calmly and stress-free. There are, therefore, numerous benefits associated with getting good advice. These might include guidance on selecting the right investment product, maximising tax relief and available allowances, or helping you access your pension – and, above all, making your money work for you, while identifying all the suitable products on the market, way beyond the scope of any comparison site.
When to get a financial adviser
People usually approach an adviser when facing at least one big ‘life decision’. It might involve setting up a pension, saving to buy a home, an investment decision, marriage or family planning, a career change, starting a business and a whole host of decisions related to retirement planning.
Other consultations might include emigration or relocation, the cost of divorce, long-term care provision or general financial products such as mortgages or pensions.
Expert guidance will help you make certain decisions, ensure your tax and general household finances leave no nasty shocks, and handle complex and time-consuming financial affairs when you would rather be doing something else. They will offer their wisdom, giving you the confidence to navigate through cash saving products such as savings accounts, ISAs or fixed rate saving bonds.
With other potential investments such as shares and unit trusts, they can offer advice before you approach brokers and other providers. An adviser can also take you through how different pensions work, their risks and suitability.
Types of financial advisers
There are two main types of financial adviser.
An independent financial adviser (IFA) typically offers unbiased advice on a full range of investments, products and providers in the market. Others offer a ‘restricted’ service, which is more specialised or limited. If you are currently seeking financial advice in Cheshire, contact our team at Hartey Wealth Management today.
