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.
Financial advisors can generally offer you any financial service available on the market. This will encompass life insurance, savings plans, pensions, mortgages and personal investments. Some can also offer you extras such as inheritance tax planning and will writing.
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.
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 doing this they can build a personal profile of where you are and where you would like to be financially. Armed with this information they can then go and find the products on the market that will be of best value and benefit for you and your budget.
Once they have done this they are then in a position to sit with you again and go through their proposals for you and if they are acceptable to you they can move it all forward and make applications on your behalf.
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.
In conclusion, the role of an IFA is to pick through every aspect of your financial situation, budget and requirements in order to correctly advise you on what financial services would be beneficial to you. They then source and facilitate these services. It is then their job to monitor your situation to ensure that should your finances change, your financial protection will change accordingly where required. In these troubled times, you can see why now is the best time to seek expert help when it comes to controlling, and protecting, our finances.
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.
Financial advisors can generally offer you any financial service available on the market. This will encompass life insurance, savings plans, pensions, mortgages and personal investments. Some can also offer you extras such as inheritance tax planning and will writing.
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.
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 doing this they can build a personal profile of where you are and where you would like to be financially. Armed with this information they can then go and find the products on the market that will be of best value and benefit for you and your budget.
Once they have done this they are then in a position to sit with you again and go through their proposals for you and if they are acceptable to you they can move it all forward and make applications on your behalf.
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.
In conclusion, the role of an IFA is to pick through every aspect of your financial situation, budget and requirements in order to correctly advise you on what financial services would be beneficial to you. They then source and facilitate these services. It is then their job to monitor your situation to ensure that should your finances change, your financial protection will change accordingly where required. In these troubled times, you can see why now is the best time to seek expert help when it comes to controlling, and protecting, our finances.
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