Financial advice has always been important, now more than ever.
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.
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 ask what you are planning for exactly. Do you want to pay your mortgage off early, do you want to retire at a certain age, do you want to protect yourself against the possibility of illness in the future? Important factors to consider.
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.
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.
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 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 ask what you are planning for exactly. Do you want to pay your mortgage off early, do you want to retire at a certain age, do you want to protect yourself against the possibility of illness in the future? Important factors to consider.
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.
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.
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:
Good financial advice can be difficult to come by so why not have a look at Invest & Protect ltd we are fully qualified in offering independent financial advice.
posted by Debt Consolidation Loan at
3:28 PM
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